Blockchain

In Financial Services

We can help facilitate new product development – designing new financial infrastructures and instruments or innovating on incumbent solutions – and assist you with integration into blockchain networks (public, private or consortium).

What EY can do for you

Blockchain technology has demonstrated the potential to universally reshape the way business transacts across nearly every industry in the global economy. As the technology and its use cases continue to evolve and progress, blockchain is empowering enterprises to drive greater transparency, traceability and operational efficiency for a multitude of business transactions and contracts.

Our mission in the blockchain business at EY is to put in place all the tools, systems and services that will be needed to help companies take advantage of this technology and drive enormous productivity gains as a result.

Financial services institutions are exploring how to fully benefit from or deploy blockchain: identifying product opportunities, regulatory concerns and difficulties identifying/assessing risks and corresponding controls.

Within financial services, we offer distinct blockchain products and services that conjoin our deep technological expertise with our traditional advisory and financial services experience and domain knowledge. We are enabling and driving change across sectors. We are pro-actively evaluating many of the business ecosystems that can be enabled by blockchain and working with our clients to manage the business transformations made possible by this technology. Some of the areas we have seen particular interest in from the market place include:

  • Securitization: Market participants see Blockchain as a means towards minimizing the need for reconciliation and due diligence, improving reporting and compliance through real-time access to immutable asset level information, achieving superior execution and creating new asset classes and structures through facilitated innovation and lower barriers to entry.
  • Payments and settlements: Using Blockchain to achieve real time processing of transaction, distribute and enforce business rules, reduce costs by eliminating intermediaries and simplify infrastructure, reduce risk of loss of data, better end to end transparency and predictability.
  • Intercompany settlement: Revolutionize intercompany relationships and transactions for large institutions through Blockchain’s ability to maintain a single source of immutable truth, automate intercompany transactions using smart contracts and consensus mechanisms, provide visibility across disparate systems, substantially reduce intercompany imbalances, leverage near-real-time reporting rather than period end and streamline and standardize intercompany supply chain processes.
  • Smart contract testing: Smart contracts are a fundamental component of blockchain applications. For users of Blockchain technology it is critical to test smart contract code for accuracy, security, standardization and efficiency. Equally as important is testing the functionality and controls around the functionality. Finally, users of blockchain technology must perform ongoing performance testing.
  • Tokenization: Non-fungible tokens (NFTs) provide financial markets with a tool to represent physical assets on a blockchain. Enterprises are working through how to leverage the value NFTs and tokenization can bring to existing business processes and financial products.
  • Syndicated loans: Improving efficiency of execution and servicing across the syndicated loan ecosystem by using smart contracts to govern loan terms and conditions, distributed ledger technology to solve for communication and transaction tracking, transparency and immutable data to illuminate time consuming reconciliations and erroneous payments.
  • Digital asset custody: Cryptocurrency custody product development and vendor selection; guidance on accounting and tax treatment of cryptocurrency transactions in an evolving environment; financial controls assessments; cybersecurity/fraud assessments; and, controls development/SOC2 readiness.

From design to delivery, our strategists and engineers work hand-in-hand with clients to guide where, when and how to develop the best blockchain strategy for their businesses.

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