Venture Capitalists Spent Over $1B on Blockchain R&D in 2016

Venture Capitalists Spent Over $1B on Blockchain R&D in 2016

Provided By BIS Research

The transformational potential of blockchain technology is being witnessed all over the world, especially in revolutionizing the payment industry. This futuristic technology is likely to disrupt international payments, cloud storage, supply chain management, and music distribution in the near future.

This distributed database maintains records, which are time stamped and stored cryptographically in a chronological manner, making them immutable and tamper-proof in nature. This technology will also enable large internal and external cost savings for enterprises.

Blockchain technology has already made its debut in the international payments industry and aims to eliminate the middleman. This has ousted the need to rely on a centralized system for payment authentication and record keeping, along with reducing the threat of data hacking, which has been on the rise over the last few years.

IBM recently announced that it is building blockchain technology for seven of Europe’s largest banks, including HSBC and Deutsche Bank, to facilitate trade transactions for small and medium enterprises. In 2016, venture capitalists invested over a billion dollars into the research and development of blockchain technology to further probe the viability of this technology.


Blockchain technology is now being tipped as a solution for various security and data theft threats, and it can also pave the way for an array of new product segments and revenue streams, and provide billions of people access to financial services and instruments that are unavailable in the conventional system.

Some companies are proactively investing in this technology and pushing for exploration through isolated experiments or in partnerships with technology providers or in groups relying on industry consortiums. Although, more than 40% of financials remain sceptical about the implementation of blockchain in the system, this technology has already gained momentum to pave the way for future transactions and cloud storage.


According to a new market research report by BIS Research, titled ', more than 40 use cases of blockchain in financial services are being explored including optimizing KYC process, trade finance solutions, asset servicing, claim management in insurance, and post trade solutions in capital markets.

Leading financial institutions and banks, including Citibank, J.P. Morgan, Goldman Sachs and Barclays, among others, are investing in this technology to develop advanced payment systems for trade finance. The growing demand for this technology has led to the emergence of a multitude of start-ups in this space, offering enterprise solutions spanning across processes.

This report provides a thorough analysis of the blockchain technology market in the financial services, along with the recent trends influencing the market. The focus of the report is on the various opportunities and use cases that financial institutions and blockchain technology providers could capitalize on and the cost benefits and value they could derive. While highlighting the key driving and restraining forces for the widespread adoption of the technology, the report also provides a detailed study of the future trends and developments of the market. It also includes a separate company profiles section, which inculcates highlights of significant information about the key companies involved along with their corporate overview, financial summary, SWOT analysis, key strategies & developmental activities of recent years (2015-2017).

Some of the key players are:

  • IBM
  • Microsoft
  • Digital Asset Holdings
  • Everledger
  • Clearmatics
  • Bitbond

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Published by Research and Markets


Blockchain Technology in Financial Services Market - Analysis and Forecast: 2017 to 2026 (Focus on Opportunity and Use Case Analysis) - Product Image

Blockchain Technology in Financial Services Market - Analysis and Forecast: 2017 to 2026 (Focus on Opportunity and Use Case Analysis)

  • Report