Post-Transaction Distributed Ledger Alliance: Blockchain will achieve mainstream adoption within a few years, and its biggest benefit is saving operating costs

More than half of the members of a blockchain consortium working on post-trade settlement believe that blockchain technology will be widely adopted in the next three to five years.

These are the findings of a recent survey released by the Post-Transaction Distributed Ledger (PTDL) Consortium, which surveyed 45 of the consortium’s key members last fall.

According to the survey results of the alliance, 48% of the alliance members said that they believe that blockchain technology (or distributed ledger technology) will be more widely adopted by the industry in the next 3 to 5 years. Another 29% estimated that it will be widely adopted in the short term (1 to 2 years), and 21% said they believe it will take at least 5 years, or even longer.

PTDL was officially established in November 2015, with initial members including the London Stock Exchange, Chicago Mercantile Exchange, Euroclear, LCH.Clearnet, Societe Generale and UBS. The membership of the blockchain alliance has now expanded, with Ernst & Young (EY) serving as the alliance's consultant and Norton Rose Fulbright providing legal and regulatory guidance.

According to the survey, when asked about the overall importance of blockchain to their own companies, 20% of members said the technology was of “very high” importance, while the other 34% of participants said blockchain was a “high” priority for them. The other 7% said the technology was a “low” priority.

Jörn Tobias, managing director of State Street, a PTDL member, said in a statement:

“This survey shows that blockchain technology could become mainstream within a few years, and our members are well aware of the many benefits it will bring, including greater transparency, shorter settlement cycles and greater cost savings. However, there are significant barriers to adoption: corporate fear of adoption and hesitation to embrace cutting-edge technology.”

The survey also focused on the potential benefits of blockchain technology in the post-trade space, with operational cost savings being the most highlighted by the alliance’s members, with 81% listing this as the top benefit of blockchain.