This analysis is focused on leveraging industry insight to reveal the central opportunities and primary barriers of Blockchain technology in financial services. We share the underlying framework that Blockchain builds upon and quantify the key market trends and popularity of the technology ecosystem. Our analysis extends into Blockchain’s implications and likely disruption in the finance industry including the significant reduction of costs, release of capital and automation of workflows.

Key Findings 

  • We predict that back office costs make up one third of the costs, which total at $54 billion. With the use of blockchain 30% of costs could be reduced by 2021, providing savings of $16 billion.

  • $120 billion of capital is tied up in counterparty risk, which account for 9% of banks’ capital requirements. Blockchain could potentially free up 5% of capital requirements for counterparty risk.

  • Case studies of blockchain being deployed at large scale in Australia and Estonia, with a business structure breakdown and details on the concepts’ initiatives.

Table of Contents

Costs & Capital

  • Sizing of sales & trading costs as well as annual clearing and settlement costs

  • Views on cost savings and visual projection of total impact from Blockchain disruption

  • Quantifyingsavings for “Big Nine” investment banks

  • Analysis of payment and correspondent banking industry featuring network take rate and transactions per second

  • Opportunities and challenges of Blockchain for regulators


Expected cost savings from implementing Blockchain in financial incumbents

What it means for financial services

  • Analysis of key benefits and concerns of financial services in Blockchain implementation

  • Investigating which industry sector has highest potential for disruption and the risk it poses for custodians and correspondent banking

  • List of selected start-ups to watch in capital market and money transfer

  • Use case examples of Blockchain in trading and voting including case study on Digital Asset Holdings

Impact on custody businesses and their workflows

Blockchain the ABCs

  • Breakdown of blockchain and the main beneficial features it exhibits

  • A detailed timeline of the progression of blockchain since its creation, including details on Bitcoin and its roots

  • Detailed analysis of how blockchain transactions work and how they solve issues through information control and avoiding duplication

  • Definition of a smart contract, its history and an outline of potential future applications

Timeline of blockchain technology development

Engage with Autonomous

Financial service companies are transitioning from human driven revenue models to information technology driven revenue models. As part of our ongoing focus on this transition, and the core technology themes being expressed in finance, we have established Autonomous NEXT. The products and services are designed specifically for financial firms looking for strategic insight into the pace and path of the core themes shaping the financial services ecosystem.

Our services are suitable only for professional investors. You may purchase this analysis individually, or engage with us more deeply by contacting us here.