There has been news of JPMorgan, Citi and Goldman Sachs entering the crypto market and it is quite surprising to those who have not been following the moves of the digital assets of the major United States Financial institutions or the blockchain technology for over the past half-decade.
However, based on the blockchain initiatives data available publicly, analysis has clearly shown that more institutions than others are placing less priority on blockchain technology slowly and are shifting their attention to the native crypto assets.
CoinDesk surveyed the initiative announcements to assess the level of adaptation of the blockchain technology. From the survey, a clear shift is evident. In 2015 and 2016, the strategy of financial institutions has been technological-focused. But in recent times, as revealed by the survey matrix, the leading institutions in the ecosystem has moved away from the earlier stance to concentrate more of their efforts on digital assets (in terms of the number of the total initiative at least).
Till around 2018, the hype pushed by the formations of major consortia is dominated by the distributed ledger technology (DLT) and the blockchain technology itself, which also stand as a time where startups that believe in crypto without blockchain starts raising finance in tens of millions of US Dollars from the major financial institutions. After 2018, the landscape began to change significantly.
The change was exemplified by Goldman Sachs whether through its investments in exploring the establishment of its digital asset or the entry into the custody. The focus of the bank has shifted from the blockchain technology to a more balanced and wide-spread approach across assets and technology which based on research made them the leader in the market.
The revelation behind these is that the greatest value of blockchain is not in the rudimentary technology but its digital assets. Given that, it is suggested that it is time for the financial institutions to move accordingly from the technology-focused approach, but instead work on identifying the economic value that is in digitalizing the existing financial assets. This will put whoever is concerned about asset first ahead in the looming digital economy.