Credit Suisse Banker: The sky is the limit for blockchain, Bitcoin is just blockchain’s first killer app

While many banks have rejected the concept of Bitcoin, many are turning their attention to the use of blockchain.

According to an investment banker at European bank Credit Suisse, “only the sky is the limit for blockchain technology.”

James Disney, global head of software investment banking services at Credit Suisse, said that currently, it takes 20 to 30 days to settle private equity transactions, but using blockchain technology can shorten it to minutes.

Disney told CNBC’s “Fast Money”:

“If you add up the volumes we’ve had this quarter, we’ve been able to free up hundreds of billions of dollars of capital and put that capital to other uses.”

Credit Suisse is experimenting with distributed ledgers to test future applications.

New York blockchain technology company Symbiont has teamed up with Credit Suisse and a group of banks from the R3 blockchain consortium to demonstrate how the technology can be used in the syndicated loan market.

The Swiss bank also participated in a smart contract blockchain trial that took place over a four-month period starting in October 2016, with a number of banks and financial firms testing a prototype developed by blockchain company Axoni for OTC equity swaps.

Credit Suisse seems keen to further develop this technology and is innovating a lot within the bank and across all regions.

Disney said:

“Blockchain technology has the potential to streamline our operations and financial services.”

When talking about Bitcoin, Disney said that Bitcoin has become the "first killer app" of blockchain technology. He compared it with the first "killer app" of the Internet - email, and believed that blockchain will gain more innovations over time.

He added:

“I think the sky is the limit for blockchain. We are still in the very, very early stages.”