Analysts expect the blockchain technology market to grow by a staggering 62.73% CAGR over the next few years.
This growth would put the market’s value at USD 52.5 billion, with researchers expecting the applications of blockchain in banking and finance to reach USD 22.46 billion in 2026.
At this rate, traditional banking institutions face disintermediation if they fail to adapt to the next wave of innovation. We’re already seeing the potential of cryptocurrencies and DeFi (decentralised finance) in action:
- Lower transaction fees;
- Lightning-quick international payments;
- Easier onboarding and KYC processes;
- More accessible financial services.
Blockchain purists claim that these and other benefits make a strong case for removing TradFi from the equation. In fact, many intermediaries such as clearing houses, lenders, and insurance companies seem to not be needed anymore. However, institutions can position themselves in the landscape and make use of blockchain to improve processes, reach a wider market, and create new revenue opportunities.
We’re already seeing acceptance from governing bodies like the US’s Office of the Comptroller of the Currency. Seeing the potential of the blockchain, they approved the use of stablecoins and blockchain tech to improve transaction speeds.
As blockchain use becomes more popular, banks must be ready for the transition. It may however be difficult to identify the real opportunities and use cases of blockchain in finance.
To help, we’ve put together the top seven blockchain revenue opportunities for banks.