CNBC: Wall Street remains bullish on blockchain despite hurdles to mainstream adoption

Wall Street banking giants are betting on blockchain's potential to reshape financial infrastructure and optimize the $5 trillion industry by 2030.

A new feature on CNBC on July 26 highlights that Wall Street’s view on blockchain technology remains bullish, as pressure from market dynamics and the need for innovation drive the U.S. financial system to explore blockchain technology for future growth.

According to CNBC’s Tanaya Macheel, Wall Street sees blockchain as a solution to inefficient and time-consuming processes in the current financial system. This decentralized, transparent, and fast method of transactions holds great promise in systems plagued by siled infrastructure and slow transfers.

JP Morgan Onyx CEO Umar Farooq told CNBC that he believes that blockchain technology can completely change and rewrite financial market infrastructure. This potential for cross-platform integration and speed has banks such as JPMorgan and Goldman Sachs betting on the transformative power of blockchain.

Georgetown University business professor James Angel said that tokenization (the process of converting real-world assets into digital assets on the blockchain) is not a new concept and has been a part of financial markets for centuries. part.

However, the Citi analyst said Macheel noted that blockchain could significantly optimize the process, with the industry potentially reaching $5 trillion by 2030.

Despite these potential benefits, the transition to blockchain is not without its challenges. As Machel points out, the financial system is one of the most heavily regulated industries in the world, and change is often slow to come.

Regulators such as the SEC and the Treasury Department must be involved with any major changes, further complicating the process.

However, these challenges have not deterred some of the major players in the financial industry. Macheel reported that JPMorgan's blockchain platform Onyx has processed $700 billion in short-term loans since its launch in 2020, highlighting the technology's practical applications in finance.

As Ryan Rugg, head of digital assets at CITI Bank, points out, the success of blockchain and tokenization will largely depend on user acceptance and adoption. The less visible the technology is to customers, the faster its adoption is likely to be, Rugg said.

The potential advantages offered by blockchain technology in terms of efficiency, transparency and speed make it a promising avenue for the future development of the financial industry. However, as the CNBC feature demonstrates, significant challenges remain and the journey of blockchain technology fully integrating into Wall Street will require further exploration and time.