Finance industry Blockchain could be a half trillion dollar market by 2030, says IHS Markit

To get a sense of what that growth would mean if it happens: the same number for 2017 was only $1.9bn, says the market watcher

Posted 12 February 2019 by

Though not everyone’s convinced, it seems that Blockchain remains of huge interest to the financial sector – with a new forecast saying it could be as high as half a trillion dollars ($462bn) inside 11 years.

The projections come from independent advisory group IHS Markit‘s new Blockchain in Finance Report, which examines the global market for Blockchain in the financial sector over the 2017 to 2030 timeframe.

The group arrives at that high figure by playing with the numbers around the projected increase in the number of such projects that are expected to launch and become commercially deployed in that period.

Again, despite some naysayers, especially McKinsey, IHS Markit defends its conclusions based on the wide range of finance sector use cases it sees as strongly emergent – everything from cross-border payments to share trading and syndicated lending.

It also points out that because of the scale of the transactions that typically occur in the sector, even a small percentage of cost savings and efficiency gains via use of Distributed Ledger could lead to significant business value for users – and vendors – of the stuff: the global Derivatives market alone is worth around $544 trillion a year, and the market capitalisation of all the world’s stock markets is equal to $73tn.

To take just one example utilised in the study, applying Blockchain to the clearing and settlement of cash securities – specifically, equities – investment companies could save up to $12 billion in fees.

“Blockchains can also save financial organisations money, by cutting out many of the traditional middlemen involved in the financial sector,” adds the study, written by the organisation’s Principal Analyst Cybersecurity & Digital ID, Don Tait.