Nasdaq says only 5% of stock market IT providers use blockchain

June 27, 2018
Chris Wheal

Suppliers of IT services to stock markets and exchanges are proving reluctant to deploy blockchain technology, according to a study commissioned by Nasdaq, the US exchange.

Market IT providers slow to deploy blockchain technology

The study found that only 5% of the firms polled by research firm Celent had implemented blockchain in any form, as many remained in the early stages of testing the benefits of distributed ledger technology.

Cloud and AI

By comparison, around 40% had already moved many of their services to the cloud – many due to regulatory requirements to provide better trade analysis data – while 70% had deployed robotic process automation and 35% administering artificial intelligence/machine learning techniques.

While some 70% of service providers said they were in the development stages with blockchain services, 20% had “no plans” at all for the technology: among the reasons stated were that their companies lacked the expertise.

Arin Ray and Josephine de Chazournes, the Celent analysts who conducted the study, said market infrastructure providers first needed to be sure of a new technology’s scalability, security and speed before they would consider replacing existing systems.

Funding increases

Funding is increasing for blockchain research, and many universities around the world are developing departments within their business and finance faculties to explore the technology.

Earlier in June, Ripple – the blockchain protocol that supports the ripple cryptocurrency – announced $50m in funding to some of the world’s top universities to “support and accelerate academic research, technical development and innovation in blockchain”.

Meanwhile, Waltonchain, the China-based crypto and blockchain ecosystem launched the world’s first blockchain research institute earlier in June.

In its press release it said: “The Walton Blockchain Institute will cultivate a new generation of blockchain developers by fostering a blockchain-related educational environment specialising in systems development and application.”

The main hope for such projects is that in the next few years companies, such as those polled by Celent, won’t be faced with a deficiency of talent to implement blockchain strategies.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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