Major Banks JPMorgan, Goldman Sachs, and Citigroup Plan Crypto Tech Adoption in Anticipation of $5 Trillion Expansion by 2030
Major American banking giants, including JPMorgan and Citigroup, are actively exploring crypto technology to develop new financial rails for what could become a $5 trillion industry in the future.
CNBC reports that these banks aim to tokenize assets on blockchains. Aiming to “supercharge” Wall Street and facilitate efficient and nearly instant transactions. Citibank’s head of digital assets, Ryan Rugg, highlights the importance of a blockchain-based system that operates continuously to meet the needs of their digital-first economy. Currently, Wall Street operates on a “T+2” system. Taking two days to settle transactions and involving multiple intermediaries. Tokenizing activities on the blockchain could significantly streamline the process. Citigroup analysts predict that by 2030, around $5 trillion worth of real-world assets could be tokenized on blockchains. JPMorgan, through its blockchain business unit Onyx, has already facilitated dollar trades and handled $700 billion in short-term loans.
Onyx CEO Umar Farooq believes blockchain’s underlying technology will fundamentally transform financial infrastructure. BlackRock’s CEO, Larry Fink, sees Bitcoin and asset tokenization as pivotal in revolutionizing finance. Making investment more accessible and democratizing the cost of investing. He envisions tokenization as a means to provide investors with fractional shares and transform the finance industry, much like ETFs revolutionized the mutual fund industry.
Clever Robot News Desk 28th July 2023
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