On Friday, JP Morgan published a 74-page review of enterprise blockchain and digital currencies. The report says banks have yet to see tangible benefits from their ongoing funding of blockchain initiatives but is optimistic long term. It gives a three to five-year timeframe for widespread adoption. The main impediments it sees are the economy, regulation and cross-platform interoperability.
JP Morgan identified trade finance as the most promising application and emphasized documentary trade or letters of credit in particular. It named a handful of banks and major platforms such as Contour and komgo for documentary trade, as well as platforms initially targeting open account trade finance, Marco Polo, we.trade and Hong Kong’s eTradeConnect.
However, it predicts the widespread adoption of these platforms is three to five years away. It didn’t mention China Construction Bank, which already has volumes of more than $50 billion.
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