DTCC CEO: Blockchain is a once-in-a-lifetime opportunity

Blockchain technology is quickly being touted as capable of bringing unprecedented leaps forward to the financial industry. Stock exchanges such as the Australian Stock Exchange (ASX) have moved beyond just conducting blockchain trials and lengthy testing to now applying blockchain solutions to post-trade processes.

The Wall Street clearing and settlement center DTCC is one of the well-known companies in the financial industry that develops blockchain solutions.

The DTCC recently participated in a blockchain test that successfully applied distributed ledger technology to credit default swaps, an area worth tens of thousands of dollars.

In a recent letter to shareholders, DTCC CEO Michael Bodson alluded to 2015 as the year “blockchain went mainstream.”

Michael Bodson

He also cited DTCC Chief Technology Architect Rob Palatnick ’s view that blockchain ‘hype’ can become reality. Bodson said:

“We have a once-in-a-generation opportunity to modernize the post-trade environment. We need to work together to ensure we seize this opportunity.”

This view was echoed by former ASX CEO Elmer Funke Kupper , who believes that blockchain technology is a "once-in-20-year opportunity" that can further improve efficiency, reduce costs and promote innovation.

Turning blockchain hype into reality

Bodson writes that in his more than 30 years in the financial services industry, Rob Palatnick has never seen the emergence of a technology as enthusiastic as blockchain.

According to Palatnick , while the potential and opportunities of blockchain technology are exciting, there are still some limitations.

CEO Michael Bodson quoted Palatnick as saying:

“Distributed ledgers are still immature and unproven. They have inherent scaling limitations and lack the underlying infrastructure to integrate them seamlessly into the financial market environment.”

Additionally, Palatnick does not expect mass adoption of distributed ledger technology in the short term. He claimed,

The blockchain fever among large banks and service providers could create a de facto situation where their respective blockchain developments could create a “maze of fragmented distributed ledgers.”

Therefore, Palatnick called for industry-wide collaboration to focus on developing and restructuring the existing core processes of the financial industry and replacing them with distributed ledgers.

Therefore, the Australian standards body Standards Australia has called for the establishment of global standards for blockchain development, and it has asked the International Organization for Standardization ISO to establish global standards for distributed ledger technology.

Original article: https://www.cryptocoinsnews.com/dtcc-ceo-blockchain-generation-opportunity/
Author: Samburaj Das
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/dtcc-ceo-blockchain-generation-opportunity)