More and more banks are turning to Web3 technology. to create more efficient and innovative products A recent survey by Bain and Company found that Web3 can reduce operating costs associated with providing banking services by between 15 and 25 percent.
The financial sector is increasingly adopting Web3 technologies, including blockchain. smart contract Cryptocurrencies and NFTs, for example, form deals in more than $200 million worth of mortgage assets each month. Project Ion at DTCC currently processes nearly 160,000 transactions per day.
First group of users Those supporting Web3 integration are of the opinion that it will facilitate solving all the challenges associated with traditional banking. and improve the consumer experience. They are of the opinion that it will have a significant impact on the current system.
The pilot project is being viewed with optimism by banks and general digital fintechs internationally. Senior executives in the banking industry estimate that widespread adoption of Web3 will take five to six years.
Additionally, Web3 is expected to reduce operational hazards and provide opportunities for the tokenization of assets in private markets. In addition to the survey results, high school data will also be more accessible. Tokenized assets have the potential to act as collateral and effective liquidity control.
By adhering to established regulations and effectively managing risk factors and Know Your Customer (KYC) capabilities, banks can capitalize on these opportunities. The element of trust will also help. Web3 operates in the ecosystem through the integration of the entire value chain and cooperation with many institutions.
The fact that banks Often already familiar with this system will facilitate integration. Physical connectivity increases consumer convenience. One drawback may be that large fintech companies can reduce their market share.
The road to widespread Web3 adoption will be fraught with its own challenges, such as the introduction of new regulatory features. That will take some time to implement. Additionally, the costs associated with developing a comprehensive ecosystem to support more customers will increase.
Sectors such as retail payments and wholesale financial management Initial acceptance is expected. Additionally, there will be a private capital market and institutions for the custody and servicing of assets.
When various institutions Compete with each other in terms of online identity. The importance of digital Web3 wallets will also increase. However, at present, they all fall into a gray area. All factors need to be taken into account.