Will blockchain transform the stock market?

That not-so-good old-timey exchange

Today’s investor relies on a traditional system of buying, selling and accounting for transactions that’s old enough to be called ossified. The system generates considerable costs and adds to the time needed to close transactions. This is because trading in financial assets requires multiple entities arranged in a complex web of intermediaries, settlement systems and business partners. Whether they are investors, brokers, depositaries, stock exchange management or central supervisory bodies, all actors taking part in asset trading — buying, selling, or transferring — are obliged to generate messages, receive authorizations, and continuously update transaction status records.

And then came the crash

There is another factor to consider: trust, the willingness of investors to believe and have faith in the general rules underpinning the stock exchange system.

Blockchain hits the largest trading floors

The investment market is on the cutting edge of early blockchain deployments.

How the blockchain future will flower

Financial institutions must, above all, be certain that their customers’ money is secure. It is therefore unsurprising that even given the examples related, capital markets are still slow to embrace blockchain. To see genuine progress, certain conditions must be met, primary among them the establishment of the most stringent security standards for the block system. Blockchain implementations require proper laws. Unfortunately, right now, the legislative environment everywhere is somewhat polarized and inconsistent.

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