London, UK-based business information provider IHS Markit announced in a press release it sent to CoinReport the finding of its report, “Blockchain in Finance,” saying the value of blockchain in the global financial sector is estimated to reach $462 billion by 2030, thanks to the projected increase in the number of blockchain projects expected to launch and become commercially deployed in the coming years.
In 2017, the revenues reached $1.9 billion.
IHS Markit principal analyst Don Tait said in the news release we received, “The Securities and Exchange Commission in the United States, the Financial Conduct Authority in the UK, the Hong Kong Monetary Authority and other regulatory bodies are reacting positively towards blockchain technology within the financial sector.”
He added, “The backing by these regulatory bodies bolsters the credibility of blockchain technology, helping it become more mainstream.”
The global financial industry can leverage blockchain technology in several ways, including syndicated lending, share trading as well as cross-border payments. The market, which includes fintech and insurance, will continue to be the biggest value market utilizing blockchain, said the release from IHS Markit.
Even a small percentage of efficiency gains and cost savings can bring substantial commercial worth for industries and firms that introduce blockchain, as the financial industry includes markets of substantial value, added the press release.
The derivatives market, for example, is valued at about $544 trillion a year and the market capitalization of all the world’s stock markets is equal to $73 trillion.
Tait further said, “By applying blockchain to the clearing and settlement of cash securities – specifically, equities – investment companies could save up to $12 billion in fees. Blockchains can also save financial organizations money, by cutting out many of the traditional middlemen involved in the financial sector.”
The report by IHS Markit analyzes the worldwide market for blockchain in the financial industry. It offers a present snapshot of this market and analyzes the aspects that are estimated to delay and drive development in the blockchain market from 2017 to 2030.
Image via press release