Banks' Blockchain Budgets Spiked 67% in 2017, Survey Finds

Blockchain budgets at global banks' increased sharply in 2017, pushing combined annual spending to $1.7 billion, according to a new survey.

Jun 13, 2018 at 1:01 p.m. UTC
Updated Sep 13, 2021 at 8:03 a.m. UTC

The global financial services industry spent a combined $1.7 billion on blockchain development in 2017, with institutions having increased their individual budgets for the technology by 67 percent in the same year.

According to research published by U.S.-based market intelligence firm Greenwich Associates on Tuesday, amid the general increase, 10 percent of the surveyed banking institutions reported that their budgets for areas such as blockchain research and product development had grown to $10 million or more in 2017.

Furthermore, the report said 14 percent claimed to have already deployed a blockchain solution. Meanwhile, Greenwich Associates found that the shift from proof-of-concepts to live production is expected within the next two years in over 75 percent of the projects.

However, Richard Johnson, author of the report and vice president of the firm's market structure practice, said that over 50 percent of the executives interviewed said that implementing the technology "was harder than they expected."

The study, which earlier this year interviewed around 200 global institutions that have participated in blockchain development, said the number of staff dedicated to blockchain also doubled during the same period. Citing its interview results, the firm said that, in general, a top-tier bank now has around 18 full-time employees focusing on blockchain development.

The report signals the growing investments being made by financial institutions on blockchain technology over the past two years. In a survey published in early 2016, the firm estimated that total spending by financial and technology firms on blockchain in 2016 could reach $1 billion.

Calculator image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
2
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
3
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown