Distributed ledger tech could save TradFi $100B a year: Lobby group

May 16. 2023

By Tom Mitchelhill

A new report from the Global Financial Markets Association says regulators need to take distributed ledger technology more seriously.

Around $100 billion a year or more could be saved if distributed ledger technology (DLT) was used in traditional markets, claims a new report from the Global Financial Markets Association (GFMA).

In a May 16 report, the traditional finance sector lobby group, along with international consulting firm Boston Consulting Group and others, asked both regulators and traditional financial institutions to take a more serious look at the upsides of the technology.

A distributed ledger is an umbrella term for a system that records transactions and digital information. A blockchain is a specific type of distributed ledger.

“Distributed ledger technology holds promise for driving growth and innovation,” said GFMA CEO Adam Farkas. “This potential should not be ignored or prohibited where regulatory oversight and resiliency measures already exist.”

According to the report, using distributed ledgers to streamline collateral processes in derivatives and lending markets could see an additional $100 billion saved.

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