Blockchain. Bitcoins. Cryptocurrency. Pioneers at the intersection of finance and technology are creating a new language. These new words describe how we’re developing and using cutting-edge technology to transform payment systems and speed up how financial institutions do business.
BNY Mellon is actively exploring the challenges and opportunities of blockchain, the distributed-ledger technology that underlies bitcoin.
To lead the thinking in blockchain and shape constructive deployment in our industry, BNY Mellon hosted an event in early 2015, attended by peer organizations in our industry, blockchain start-up companies and opinion leaders in the fields of academia and law. Blockchain may open doors to new lines of business. However, challenges will likely include the need to integrate with systems and legal frameworks in place today and consider data privacy concerns across geographic jurisdictions.
We are also helping to drive industry-wide discussion through our participation in a consortium of 22 banks, called the Distributed Ledger Group (DLG). The collaboration is yielding valuable knowledge sharing and joint design, engineering and experimentation across the finance industry to advance enterprise-wide shared ledger solutions that meet industry and regulatory requirements for security, reliability, performance, scalability and audit.