Tracking consumer goods through the supply chain from origin to final transaction is another way blockchain is being utilized in today’s global market; with blockchain the supply process becomes less segmented and more streamlined which helps delivery efficiency; sellers can also provide detailed information on products through printed codes helping to increase confidence in consumer brands; these benefits and more are causing increased utilization of blockchain technology which is likely to lead to more widespread use by retail providers. Source
R3 has reported that it is leading a $150 million funding round for a blockchain investment which is expected to close in the first quarter of 2017; the funding will be the largest investment in the blockchain industry; R3 is a blockchain banking consortium with over 100 employees in nine countries; it now has 77 members and will be involved as an adviser on the Depository Trust and Clearing Corporation's integration of a new blockchain solution. Source
Cost reduction benefits have been identified for blockchain however revenue benefits are also a factor for banks; banks are increasingly using blockchain solutions to reduce expenses and now banks are also researching ways to utilize blockchain for revenue growth; as blockchain becomes more widely used in the industry it is likely that banks will develop revenue generating products that use the technology; while banks have not greatly been reporting on new blockchain products, potential product development exists with digitizing illiquid assets and building micropayment systems. Source
In 2016 government regulators became more involved in the fintech industry in a variety of ways; while new regulations were discussed across the globe, governments also got more involved in the industry through sandbox and innovation programs; China's fintech market continued to grow in 2016 with both private market funding and fintech company growth; in 2016 robo advisors and blockchain emerged with new services; the market now offers a broader range of robo advisor services and the leading asset managers have introduced their own platforms; blockchain also reported unprecedented growth with distributed ledger being used for a wider variety of solutions across all industries; all of these industry developments are expected to remain in focus for 2017. Source
2016 was an influential year for blockchain technology; companies across all industries invested in blockchain development; CoinDesk reflects on the year with 13 top stories on blockchain; among the leading headlines were Hyperledger and R3, consortiums which led development within the industry; central banks explored the use of blockchain with the Bank of England announcing in January plans for testing distributed ledger with its settlement system; IBM took a lead role, both with its blockchain as a service offering and involvement with the Hyperledger Project; digital currencies were also at the forefront of industry activity. Source
The Federal Trade Commission (FTC) will hold a fintech forum focusing on blockchain and artificial intelligence on March 9, 2017; the forum will be the third fintech forum for the FTC; event will be free and open to the public at the University of California, Berkeley. Source
The Depository Trust and Clearing Corporation (DTCC) has announced development of a new distributed ledger technology solution for processing credit derivatives; DTCC has selected IBM, Axoni and R3 to lead the integration of the solution; IBM will manage the solution-as-a-service with Axoni providing infrastructure and smart contract applications and R3 participating as a solution advisor; the solution will be one of the first comprehensive financial services trade processing solutions used globally; its goal is to streamline, automate and reduce the cost of derivatives processing; the solution is anticipated for completion in 2018. Source
PJSC Siberia Airlines has announced the first letter of credit service payment using blockchain; the opening and executing of the letter of credit issued from Alfa-Bank was recorded with smart contracts on a distributed ledger; the subsequent payment for services will also be transacted through blockchain technology; Alfa-Bank provided members of the deal with an electronic Alfa-business online system for deal processing. Source
Bloomberg Intelligence provides insight on Asia's fintech market in 2017; in internet finance Alibaba and Tencent have a strong market position with high barriers to entry set for the growing market; blockchain is expected to remain at the forefront of fintech development with use in online money transfers, electronic payments, banking and internet finance; insurtech will also be important with technology focused on sales distribution, product development and client engagement; data tracking, artificial intelligence and internet of things technology are also expected to be factors for insurtech. Source
The Hyperledger Project, a fast growing open blockchain initiative, has added eight new members; the newest members are CA Technologies, Factom Foundation, Hashed Health, Koscom, LedgerDomain, Lykke, Sovrin Foundation and Swisscom; the Hyperledger Project now has over 100 members; Hyperledger is hosted by the Linux Foundation and seeks to create standards for distributed ledger technology. Source