IHS Markit: Blockchain revenues to reach over $460 billion by 2030
15 February 2019 London
Image: Shutterstock
Blockchain-related revenues are projected to reach $462 billion globally by 2030, according to IHS Markit’s Blockchain Finance Report.
In the report, IHS Markit stated that in 2017, blockchain business value in the financial sector was estimated to be $1.9 billion and by the year 2025, 10 percent of global GDP is expected to be stored on blockchains or blockchain-related technology.
IHS Markit described blockchain as essentially a decentralised ledger or store of records
that enables the transaction and execution of smart contracts and decentralised applications.
IHS Markit further indicated by applying blockchain to the clearing and settlement of cash securities, specifically, equities and leveraged loans, investment companies could save around $11 billion to $12 billion in fees.
It said: “There is barely a day that goes by without a fresh announcement about how banks and financial institutions are seeking to use blockchain technology to transform significant parts of their business.”
“Most, if not all, industry blockchain deployments are still at a very nascent stage—companies are experimenting and trialing how to get blockchain right. Use cases and business models will evolve significantly before mainstream adoption. Despite its clear promise, blockchain technology is not a panacea—existing solutions may still be best.”
IHS Markit said the derivatives market saving and efficiency gains, can lead to significant business value for companies and industries that decide to introduce blockchain technology.
The firm also discussed how authorities attitudes toward blockchain technology bodes well for giving “more credibility to blockchain technology and help to make it become mainstream”.
These authorities were named as The US Securities and Exchange Commission, The Financial Conduct Authority in the UK, and the Hong Kong Monetary Authority.
Commenting on the future, IHS Markit said it expects a substantial adoption of security tokens in the next five years.
It affirmed: “Security tokens are a natural bridge between the traditional finance sector and blockchain and benefit both equally. This is because the assets divvied up via tokens already exist in the traditional market—even the biggest markets like public or private equity and real estate.”
IHS Markit concluded: “Collaboration, consortia, and open source solutions are still the best way to succeed in this emerging and transformative technology. The more credible blockchain projects that have realistic business plans and solve a current problem are more likely to be here in five to 10 years time.”
In the report, IHS Markit stated that in 2017, blockchain business value in the financial sector was estimated to be $1.9 billion and by the year 2025, 10 percent of global GDP is expected to be stored on blockchains or blockchain-related technology.
IHS Markit described blockchain as essentially a decentralised ledger or store of records
that enables the transaction and execution of smart contracts and decentralised applications.
IHS Markit further indicated by applying blockchain to the clearing and settlement of cash securities, specifically, equities and leveraged loans, investment companies could save around $11 billion to $12 billion in fees.
It said: “There is barely a day that goes by without a fresh announcement about how banks and financial institutions are seeking to use blockchain technology to transform significant parts of their business.”
“Most, if not all, industry blockchain deployments are still at a very nascent stage—companies are experimenting and trialing how to get blockchain right. Use cases and business models will evolve significantly before mainstream adoption. Despite its clear promise, blockchain technology is not a panacea—existing solutions may still be best.”
IHS Markit said the derivatives market saving and efficiency gains, can lead to significant business value for companies and industries that decide to introduce blockchain technology.
The firm also discussed how authorities attitudes toward blockchain technology bodes well for giving “more credibility to blockchain technology and help to make it become mainstream”.
These authorities were named as The US Securities and Exchange Commission, The Financial Conduct Authority in the UK, and the Hong Kong Monetary Authority.
Commenting on the future, IHS Markit said it expects a substantial adoption of security tokens in the next five years.
It affirmed: “Security tokens are a natural bridge between the traditional finance sector and blockchain and benefit both equally. This is because the assets divvied up via tokens already exist in the traditional market—even the biggest markets like public or private equity and real estate.”
IHS Markit concluded: “Collaboration, consortia, and open source solutions are still the best way to succeed in this emerging and transformative technology. The more credible blockchain projects that have realistic business plans and solve a current problem are more likely to be here in five to 10 years time.”
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