First half US blockchain investment exceeds whole of 2017

In the first half of the year, blockchain investment in the US exceeded the whole of 2017, led by $100 million-plus (£76 million) funding rounds to R3 and Circle Internet Finance.

KPMG’s The Pulse of Fintech report suggests this rapid growth can be attributed to the technology’s widespread applicability to harnessing efficiencies within financial institutions. “While it has primarily been looked at from a banking and insurance point of view to date, the reality is blockchain opportunities abound and could enhance processes for any number of US and global businesses,” the report says.

Around the world

KPMG expects blockchain to gain momentum in the US and garner further interest among governments in the EU. In April, 22 EU member countries signed a declaration on the Creation of a European Blockchain Partnership in order to foster collaboration across various initiatives and help to reduce barriers to potential cross-border solutions.

The Government of Ireland is currently in the process of updating its international financial services strategy, which is expected to have a strong FinTech component, including blockchain and digital ledger technology (DLT) opportunities.

Blockchain is also a key priority for investors in Asia. While most initiatives remain at the proof of concept stage, a small number have begun moving into production.

The Australia Stock Exchange is progressing with a blockchain-based solution to replace its current post-settlements process, while WeBank in China is implementing a production blockchain system to provide syndicated lending capabilities.

“Southeast Asia is becoming very significant for the development of blockchain,” says Eamonn Maguire, Global Lead of Blockchain at KPMG International. “The cultural ecosystem, economy and many governments are focused on driving blockchain development. This holistic innovation effort is also evident in the Middle East, where governments are playing a significant role in innovating and stimulating their economies through the economic development associated with technology.”