As major banks reject the notion of bitcoin, many are turning their attention to the use of the blockchain.
According to an investment banker from European bank Credit Suisse, the ‘sky’s the limit’ for the technology.
James Disney, Credit Suisse’s global head of software investment banking, said that it takes 20 to 30 days to close and settle private equity transactions. Yet, with the blockchain this could be reduced to minutes.
Speaking with CNBC’s ‘Fast Money,’ Disney said:
If you add up all of our volume over the quarter, that’s hundreds of billions of dollars we’re able to free up and take out of the system to use for other purposes.
Credit Suisse has been experimenting with the distributed ledger to test the environment for future use.
New York City-based blockchain technology company Symbiont teamed up with Credit Suisse and a number of banks forming the R3-led consortium in 2016 to demonstrate how the technology can be used in the syndicated loan market.
The Swiss bank has also taken part in the completion of a smart contracts blockchain test. Over a four-month period from October 2016, a number of banks and financial firms tested a prototype developed by blockchain firm Axoni for over-the-counter (OTC) equity swaps.
Credit Suisse appear keen on developing the technology’s use further with a plenty of innovation going across the bank and in all regions, Disney said.
It has the potential to really streamline our operations, and that of all in financial services.
Talking about bitcoin, Disney said that it has become the first ‘killer app’ for blockchain. Comparing it to email as the first ‘killer app’ of the Internet, he believes that more innovation will develop with the blockchain through the years.
He added:
I think the sky’s the limit, really. We’re in the very, very early stages here.