Real money flows to the blockchain

by Matthew Reynolds

When Bitcoin first burst onto the map, many saw the digital cryptocurrency as a gimmick – intangible, supported by a shadow community, created by mining with code. Time will tell if Bitcoin survives, but the revolutionary ledger system behind it, known as the blockchain, is looking like it’s here to stay.

Businesses are definitely interested, and money is finally flowing into blockchain research An article in the Wall Street Journal highlights a substantial investment in Digital Asset Holdings LLC, a blockchain startup focused on practical uses of the blockchain database for the banking industry. A handful of mega-banksand other big names, including J.P Morgan Chase, Accenture PLC, and Citigroup, have raised over $50 million for the cause.

With this financial support, Digital Asset Holdings hopes to change the landscape of banking. Used as an authentication tool, blockchain could speed up the verification of stock trades or track and confirm of loan payments. According to rough estimates, blockchain could save $16 billion on trade clearings and settlements.

Not a bad start for a technology that started with “fake money.”

Matthew Reynoldsis an Editorial Assistant at Oxford Economics, where he aids research programs in a variety of industries.