We saw that in recent years, blockchain technology has taken a few turns by few companies and within this revolution blockchain technology is here today which still needs much more adoption to seize up a dominant stage. A new point of canvas has been taken by the world’s largest custodian State Street, having about 39,407 employees worldwide, with its blockchain technology. As per their strategy, mainly focusing on digital assets for example tokenized stocks and bonds by means of cryptocurrency, they are reportedly cutting scores of developer jobs, reportedly already 100 blockchain developers have been cut, in this process.
The strategy is taken by the bank because they faced a large extent of cost pressure. Reported only a little number of token people, here token meaning perfunctory, left from the team. State Street is more focused on digital assets, stablecoins, custody and USC, Utility Settlement Coin, initiative.
But reportedly the custodian bank streamlined some of the people in those teams. But this streamlining doesn’t indicate that they are focused on distributed ledger.
Dilemma of Investors
A gigantic DLT team at State Street had been working with the Hyperledger Fabric open-source permissioned blockchain software aiming to make a single book of record, an accounting book of record for the middleware and a custody book of record on the back end. The new system is appeared to make a reduction of the need to reconcile between hundreds of databases. Depending on exceeding number of outside providers, the bank is entitling its approach as ‘’ledger-agnostic.’’ Achkar, who runs a digital asset product development and innovation team in London, has a purpose to identify the best-business cases rather than the best protocol. Usually a huge number of banks is also facing the same issue as State Street is facing. Even though the system controls over $30 trillion in asset movements but yet digital transformation is far away to go. Technology that has been replaced will not resolve everything. But a dilemma is that what we recognize is that some of the processes might appear to be efficient in the market today. The loss State Street became a cause of other’s gain.