The number of cross-border blockchain transactions is expected to surge to 1.3 billion by 2023, a “Blockchain for Financial Services: Opportunities, Challenges & Forecasts 2019–2030” study by Juniper Research shows. The 1.3 billion number represents a compound annual growth rate (CAGR) of 82% between 2019 and 2023.
Moreover, the value of the blockchain-powered transactions is expected to reach an unparalleled $3.4 trillion, which is a CAGR of 87% over the next 5 years. Expected increase will provide blockchain technology with a bigger market share compared to conventional means of conducting cross-border payments.
As a result, banks are projected to save up to $27 billion in costs a year by 2030 through the application of the blockchain technology. According to research, banks are finding that the ever-increasing costs of complying with the regulatory requirements are pushing them towards the adoption of blockchain technology.
As far as the methodology is concerned, Juniper assessed in total 19 blockchain vendors, out of which the following five are ranked as it follows: IBM, Infosys Finacle, Interbit, Deloitte and Digital Asset.
“IBM remains the indisputable leader in the space; having attracted dozens of clients in financial institutions and developed mature blockchain products, including a trade finance platform and bespoke work on areas ranging from securities digitisation to derivatives,” it is said in the study.
In order for blockchain technology to further increase its presence, smart contracts are considered to be “key for financial institutions, particularly in the context of increasing accuracy and transparency”.
“This is exemplified by JP Morgan Chase’s use of smart contracts to reduce compliance costs via the Quorum platform, a distributed ledger transaction network built on Ethereum”.
Juniper study results are in line with results coming from the Okta study, where 61% of interviewed companies see investment in blockchain technology as a business policy, while Internet of Things (IoT) is seen by 72% of respondents as the most popular network