Research published by U.S. based market intelligence firm Greenwich Associates shows huge growth in the budgets banks are setting aside for blockchain technology development. The study interviewed around 200 global institutions that are working with blockchain technology.
The global financial services industry totalled $1.7 billion in 2017 toward the technology. This is a 67% increase from the year prior.
10% of the surveyed banking institutions reported increases to $10 million or more.
14% percent claimed to have already deployed a blockchain solution.
75% expect shift from proof-of-concepts to live production within the next two years.
50 percent of the executives interviewed said that implementing the technology "was harder than they expected."
One of the most telling components of information gained from the study deals with the work force required to implement the new technology. Companies interviewed said the number of staff dedicated to blockchain doubled in the past year. Top-tier banks now have an average of 18 full-time employees focusing on blockchain development.
Cryptocurrency Exchanges Relationship with Banks
Only a handful of exchanges have been able to secure banking licenses, allowing them to list fiat pairs and accept deposits and withdrawals in fiat currencies. This is both due to regulation, as well as the fact that many of the major banks are simply unwilling to get involved in the cryptocurrency space at this time.
Most notably the largest crypto exchange by volume Binance just announced that it has set up a banking partnership in Malta. They will be able to link Euro pairs through a new platform, similar to that of Coinbase and GDAX.The largest bank that partnered with a cryptocurrency based business is Barclays (1.1 trillion in assets), which partnered with Coinbase. Small banks look to cryptocurrencies as an opportunity to attract new customers.
Hypothekarbank Lenzburg of Switzerland ($5 billion in assets) maintains accounts for blockchain and crypto companies.
Falcon Private Bank of Switzerland ($2.9 billion in assets) offers crypto asset management services.
Metropolitan Commercial Bank of the U.S. ($2 billion in assets) provides services to BitPay and Shift Card.
Silvergate Bank of the U.S. ($1.9 billion in assets) offers banking to crypto companies (Gemini, bitFlyer, etc.).
VersaBank of Canada ($1.7 billion in assets) provides virtual safety deposit box for cryptocurrencies.
By: BGN Editorial Staff