Growing adoption of the technology behind bitcoin suggests more companies and investors will put “securities on the blockchain” once Equibit Portfolio has launched.
Since its early days, distributed ledger technology – one of the key technologies behind cryptocurrency - was the subject of substantial criticism. What were its applications beyond crypto, people wondered? How long before it became mainstream? For financial services, who in the community will it impact?
With so many companies now experimenting and embracing the benefits of blockchain, that part of DLT’s evolutionary journey now seems firmly behind us. Not a day passes without an announcement from a Fortune 500 company detailing a blockchain-related project, or studies, like this one from IBM, chronicling the possibilities of DLT for financial services and beyond. With so much momentum behind blockchain-based applications, DLT is now firmly encamped in the mainstream, poised to grow at an even faster pace through 2020. So what will this mean for Equibit?
In a recent survey from Deloitte, a consultancy, 70 percent of a global sample of executives and business leaders from recognized companies now self-identify as “excellent” or “experts” when it comes to blockchain. That’s a big cohort for a technology less than a decade old. The executives surveyed said they hold pragmatic views about blockchain, that it might not be ready for primetime, but is getting closer every day. From where we stand, that day is already here.
From commercial banking, finance, even shipping and logistics companies, the use of distributed ledger technology across sectors is mushrooming, now appearing less of a pariah (as it’s portrayed when associated with recent crypto volatility), and more the tech entrenched at the centre of most organization’s innovation road maps.
DLT news now extends well beyond just crypto, much of it now discussed in both industry and mainstream press. Some examples: when the UAE decided to launch the very first cryptocurrency exchange compliant with Shariah legislation, it was mostly covered by industry sites: bitcoinist and others like it. Same when UPS announced it was filing for patent on its new blockchain-based international shipping and logistics solution. But when Goldman Sachs, an investment bank, announced it was trading bitcoin futures and the New York Stock Exchange reported setting up an online platform for buying and holding bitcoin, Fortune, the New York Times and many others took note.
To use the well-worn cliche, this is beyond the tipping point. Thanks to growing and rapidly increasing adoption, we are now staring straight down the valley of DLT’s infinite potential.
As a recent commenter on our Telegraph feed pointed out, what makes Equibit different than a lot of the DLT-focused businesses is that it is a “game changer with actual product for trading securities” (thanks, Kerim Sengul, for that one).
As Equibit Group gets set to launch capital markets services on a dedicated, secure, public blockchain, a massive opportunity emerges. Why? We contend that the further technology is embedded into our daily lives, the more DLT technologies are normalized, the more it acts as an accelerant for people’s use of Equibit and other like technologies.
As crypto tech mainstreams, not only will more people be less critical of its capabilities, more people will be inclined to use it. The adoption curve will grow as its utility stretches across industries and as more businesses realize how easy it is to raise capital on a network that is faster with less third party intermediaries involved.
With technology evolving at its current pace, device ubiquity and more crypto-based applications baked into the technology we use every day, as well as its general pervasiveness, it won’t take long before the utility, efficiency and transparency of the Equibit network catches on. Raising capital or trading securities in a way that’s new and different will soon seem less foreign and more familiar.
It won’t be long now till the launch of Portfolio, and as DLT grows, not long before businesses and investors from a global capital pool take advantage of the value proposition Equibit offers.Sign up for the most recent news and, join our Telegram community for daily communication with the team.