The tremendous rise in cryptocurrencies and digital wallet has instigated banks and other financial institutions to adapt to the current trend. It is a dire need for the banks to allow professional investors to trade valuable assets in a secured and transparent platform across the world. The banking industry has finally adopted blockchain technology due to its potential implications for the global commerce ecosystem. The open-sourced software allows multiple investors to have simultaneous access to the updated public ledger without any probability of alteration in transactions. Blockchain technology has revolutionized the banking sector from the traditional methods of securities to hi-tech securities.  It also enhances efficiency and security without any third-party intervention. Thus, multiple banks have started launching smart contracts that involve the parties to accept the deals with each other. These smart contracts allow any digital information to store and give access to parties with a set of laws. Let's look at how banks and other financial institutions are using blockchain technology.

The tangled web of loan records and securities is very expensive for investment banks to run in the market. The appropriate use of blockchain technology has enhanced the efficiency of post-trade clearing and settlement. The international banks have considered allowing commercial or institutional investors to hold cryptocurrencies in their accounts. They are willing to facilitate cryptocurrency transactions by incorporating blockchain technology in some form. These blockchain records and validates every transaction made by the investors with utmost security.

The banking industry is focused on transforming the payment system for clients with the use of blockchain technology. Blockchains do not allow any third-party intervention so there is a rapid speed of cost-efficient cross-border payments. Banks are always involved in buying and selling stocks and shares, which is a time-consuming process. But the decentralized authority removes all intermediaries or agents to improve the performance as well as reduce the transaction fee.

The traditional method of financial institutions includes multiple paperwork in the process of transactions related to commerce and international trades such as bills of lading, letters of credits, and many more. But with the use of blockchain technology, banks, and financial institutions can continue the entire process without the time-consuming paperwork by integrating all important information in one digital document.

Thus, it can be seen that blockchain technology is the future of banks and financial institutions with upgraded regulations, hi-tech security, proper identity verification, and reduced transaction fees in a fast payment process.