40 banks begin trading bonds with Bitcoin

On March 4, according to foreign media CNBC, an organization including 40 banks including Goldman Sachs and Barclays is trying to use Bitcoin's trading technology for bond trading. The system is called Blockchain. This move reflects the pursuit of technological innovation by large investment banks.

Financial technology company R3 CEV provided technical support for Blockchain last year. Blockchain is equivalent to a huge and decentralized digital currency ledger. It can record every transaction in the global network, and this information cannot be tampered with at will. However, most experts believe that this technology is still in the experimental stage and cannot be widely promoted.

Once successful, this technology can be widely used in various financial institutions, including the settlement of some transactions. Experts say that Blockchain can complete a large number of transactions in a few minutes or even seconds and is more secure and reliable because each transaction cannot be changed at will. At present, this technology can complete the transaction process of daily settlement. Supporting this technology is a series of contract clauses executed by computer code. For example, once the money for buying a house arrives, the transaction will be carried out automatically. The whole process is completely automated and will not cause any disputes.

Many of these technology companies are working with banks to conduct such trials, including Ethereum, IBM and Intel. These companies help banks solve the problem of only being able to trade fixed income. The current development of technology has surpassed the technology provided by R3. The close cooperation between global financial institutions and the technology industry will bring great impetus to social development.

The development of these technologies represents technological innovation in the industry, which will greatly improve the way the financial services industry operates, just as the emergence of e-commerce greatly improved transaction efficiency, transparency, scalability and security decades ago.

Banks are not the only industry considering the technology. Last month, Nasdaq used Blockchain to help Estonian residents living abroad vote at a shareholder meeting. Nasdaq also tested a Blockchain-based stock trading system.