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At the same time and paradoxically, more than a third (38 percent) of those surveyed said they are taking a "wait and see" approach to the technology.

"It's clear that financial organizations are talking about or preparing for DLT, yet despite delays in adoption, these firms cannot ignore the impacts on market structure," said Thomas Olsen, Bain partner and the firm's global leader for C&IB and Market Infrastructure. "Firms need to elevate their thinking on DLT beyond their innovation labs. The question requires a top-down, strategic lens to complement the bottom-up experimentation" he added.

Benefits to Global Financial Markets

There is a significant amount at stake from companies and the industry. The survey estimates the total cost and capital savings to global financial market ecosystems to be between US$15-30 billion (or around 1-3 basis points of total assets). Important long-term benefits are also likely to be driven by improved reference data, analytics and applications to machine learning and artificial intelligence (AI).

"The adoption of blockchain in the financial industry will drive significant benefits to market participants, including operational and cost efficiency," said Vijay Mayadas, Head of Global Strategy and Fixed Income for Broadridge Financial. "We are already seeing participants such as the Australian Securities Exchange (ASX) taking a leap in investing in this transformative technology by using DLT to upgrade their post-trade systems. The trend will continue as market participants see real benefits with DLT, which include know your customer (KYC) utilities, more efficient clearance and settlement and enhanced reference data management."

The research also identified several reasons for delaying investment in transformative tech like DLT. As the technology is still uncertain, financial institutions may need to invest first before seeing any potential benefits. The benefits are also uncertain.

Additionally, most firms are under heavy near-term financial pressure and are also dealing with non-discretionary investments related to regulations. Competitive positioning and game theory issues which are related to how DLT could trigger changes in market structure and pricing are also key factors delaying collaboration and progress.

You can read the full press release here:

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