Blockchain Tech Will Disrupt $117 Trillion Debt Securities Industry

While Bitcoin is struggling to achieve the next bull run, the blockchain industry is alive and well as it starts to disrupt more and more industries. According to Forbes, a leading U.S. based financial firm is set to combine smart oracles and blockchain technology to scale the debt securities sector.

Blockchain tech will revolutionize debt securities

According to a recent Forbes report, the U.S. based financial services firm Morningstar is actively developing a blockchain network which would disrupt the $117 trillion debt securities industry. Primarily developed by their Credit Ratings arm, the solution will introduce a far more efficient system for the unexplored real use case.

In an interview with the CO of Morningstar Credit Ratings, Michael Brawer stated that the company is collaborating with several blockchain companies who ambitiously strive to issue debt instruments on a blockchain system. As a reminder, the company became interested in blockchain technology for the first time when it released a report that describes the adoption of blockchain technology by several leading entities such as Apple, the Bank of America, Walmart, and others.

Based on their work so far in the industry, Morningstar is actively developing two blockchain systems that would scale the debt services sector. The Forbes report acknowledges that one of the blockchain systems would provide rating bonds from Morningstar on the Ethereum blockchain network by using oracles, an off-chain technology for connecting blockchain and non-blockchain networks.

As for their second solution, Morningstar intends to deliver quantitative rating models concerning debt securities to a blockchain network. By doing so, credit agencies could use the network to determine the value of a variety of debt securities.

Commenting on the first blockchain system, Brawer stated that the solution will be available by the end of the year, while the quantitative rating model system would be available by the end of next year.

As it is not yet certain whether the platforms will be regulated or even approved by the U.S. Securities and Exchange Commission (SEC), Brawer stated for Forbes that they are working on a supervision process that would be based on SEC regulations.

Several blockchain firms have recently met with Brawer to discuss a potential strategic partnership. The future blockchain-centric projects could be worked on in partnership with companies such as Figure, Cadence, and Polymath.

Add a Comment

Your email address will not be published. Required fields are marked *

six − five =