BLOCKCHAIN: Enterprise Blockchain Inching to Production


We give incumbents a hard time on innovation to motivate higher risk taking on technology and more investment in early stage software. But financial institutions already know that enterprise blockchain infrastructure is key to saving $20 billion across capital markets and nearly $200 billion in international payments (if you don't, ask us). While 2016 was full of constortia announcements and pilots, 2017 remained largely quiet on meaningful progress, but for ASX & Digital Asset. Seems like that's going to change.

A few examples. JPMorgan, Goldman, Legg Mason, and National Bank of Canada just tested a $150 million debt issuance on a platform derived from JPMorgan's Quorum, mirroring a transaction done traditionally. Quorum may end up getting spun out, but each bank likely has proprietary vertical software sitting on top, which plugs into existing architecture. Separately, BBVA just worked through a $90 million corporate loan issuance, reducing the negotiation time from days to hours. Credit Suisse and ING moved $30 million via R3's Corda. TD Ameritrade embedded their flag in ASCII into Bitcoin's distributed ledger. So it's not just unicorn Millennial technology or a libertarian utopia!

And the other angle is big tech. Amazon announced that it is introducing Ethereum and Hyperledger to AWS, a cloud storage business unit that just generated over $5 billion in revenue (good luck Filecoin!). That is a lot of out-of-the-box crypto that regular businesses can leverage. It matters what default technology comes pre-installed on these servers, since it will be the default choice for most of developed industry. Amazon joins Microsoft, IBM, and Oracle in building out an option in the space. How decentralized is our future again?

Source: Amazon, Microsoft, IBM

Source: Amazon, Microsoft, IBM