BlockEx gives traditional financial institutions an upgrade using Blockchain
It’s kind of funny to watch the dance of many banks and top financial institutions, and their changing views on cryptocurrency and blockchain technology. One minute Goldman Sachs is labeling crypto a “business risk” or insisting that the bubble burst will burst, but then the next minute they are investing in the technology itself. In fact, Goldman Sachs has an entire page dedicated to explaining the technology in a very positive light. It’s understandable why traditional financial institutions might be defensive of crypto considering the initial idea of blockchain was centered around cutting the banks and financial institutions out. Unfortunately, the skepticism and hesitation has left them a step behind in mastering the technology for their own financial services and a huge window has opened for blockchain entrepreneurs to reshape the system from the grassroots.
One of these companies is BlockEx, a pioneering fintech company providing a next generation financial exchange platform for blockchain-based digital assets. The platform manages the entire lifecycle of blockchain-based digital assets, including origination, issuance, exchange, settlement and redemption. It was recently selected as one of the 100 most influential FinTech companies in The Financial Technologist event, and has won a number of awards in the FinTech and blockchain field. BlockEx is quite unique when it comes to blockchain and FinTech services. Its foundation is grounded in both traditional and digital training.
BlockEx forces all ICO issuers to subscribe to a set of governance guidelines that the company has adopted from its regulatory business plan. The BlockEx team collaborates with third-party accountancy firms and fiduciaries that help with four-eyed checks of smart contracts on a daily basis. Furthermore, the due diligence process continues with a technical review of the startup. The company is heavily influenced by traditional compliance methods, and is rooted in traditional financial regulatory practices adding a layer of protection and security for their investors.
What brings BlockEx two steps ahead of current traditional financial institutions is its mastery of technology such as blockchain, automation and its adaptation into financial services. The technology is used for a variety of solutions improving the financial services itself. Security is one of its largest solutions. Blockchain assets provide an enhanced level of security, increasing the security of the system from hacking and fraud. Blockchain also provides an easy mechanism to allow users to securely transfer the assets between parties and facilitates easy audit of user accounts.
Needless to say, the technology has a huge role to play in financial institutions despite what they say. The question is whether Goldman Sachs, JP Morgan, and others will embrace the technology or use their powers to push against it. Their influence can sway blockchain in many different ways. It is no question that they have the financial backing to blow blockchain FinTech companies like BlockEx out of business. They even have the opportunity to buy them out and use the innovation as their own. There is also the potential for consumers to adopt blockchain assets and financial service companies, completely rejecting the traditional financial institutions all together.
Now is a crucial time for early adopters like BlockEx, and will certainly be a pivotal time for the major financial institutions. It will be interesting to see what path the blockchain takes in its role in financial markets. In the meantime, it is quite enjoyable to see the big guys shake in their boots a little, questioning their methods and remapping the industry.