blockchain investments strategy
Many Wall Street giants will admit they were slow adopters to the Blockchain and Crypto fraze. Fourteen years have passed since the publication of the Bitcoin white paper by Satoshi Nakamoto. That marked the turning point and the world hasn’t been the same since. Many big retailers and renowned investors thought Blockchain Investments/ Crypto was a temporary fad. Boy were they wrong!
Now large TradFi banking firms, like Goldman and JPMorgan, admit that these technologies are here to stay.
- The pros: Integrating blockchain technology with TradFi could lower risk, speed up transactions, and make it easier to track assets. Counterparty risk decreases significantly due to the settling period which can be reduced to hours as opposed to days.
- The type of blockchain technology Goldman and JPMorgan are utilizing is permissioned (vs permissionless). Permissioned networks, meaning a central party, similar to a bank or consortium of banks – would decide who is allowed on. Meaning the banks retain control.
- TradFi folks are realizing that one doesn’t have to believe in cryptocurrencies to still benefit from the underlying technology.
Tom Farley, former president of the New York Stock Exchange, even admitted that “Blockchain technology is going to rewire all financial services.” . Blockchain investments are going to be a long ride and the next coming years will be instrumental to the industry at large!
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