In a major development for the blockchain industry, Goldman Sachs, Microsoft, and Cboe Global Markets have joined hands to launch a new blockchain network. The network, called the Blockchain Settlement Network (BSN), is aimed at simplifying post-trade processes for financial institutions by using blockchain technology.

The BSN will be built on Microsoft’s Azure cloud computing platform, and will use Cboe’s market data and order routing services to enable efficient clearing and settlement of digital assets. Goldman Sachs will act as the first settlement participant on the network.

This collaboration comes as a significant step for the blockchain industry, as it signals growing acceptance of blockchain technology among traditional financial institutions. While blockchain has long been associated with cryptocurrencies, it has increasingly been recognized for its potential to streamline processes and reduce costs in a variety of industries.

Goldman Sachs has been a leader in exploring the potential of blockchain technology in the financial sector, having previously invested in blockchain startups and developed its own digital currency. Microsoft, on the other hand, has been expanding its blockchain offerings through its Azure cloud platform, which provides developers with tools to build, test, and deploy blockchain applications.

Cboe Global Markets, a leading provider of trading technologies, has also been exploring blockchain-based solutions for clearing and settlement. The company’s partnership with Microsoft and Goldman Sachs marks its entry into the blockchain market.

The BSN is expected to help financial institutions streamline their post-trade processes, which are often complex and time-consuming. By using blockchain technology, the network will enable participants to settle digital asset transactions in near real-time, reducing the time and costs associated with traditional clearing and settlement processes.

The BSN is not the first blockchain-based settlement network to be launched in the financial industry. In 2019, blockchain consortium R3 launched a similar network called Corda Settler, which allows for real-time settlement of payments on Corda, its blockchain platform. Other blockchain-based settlement networks include JPMorgan’s Interbank Information Network and Visa’s B2B Connect.

However, the involvement of Goldman Sachs, Microsoft, and Cboe Global Markets in the BSN marks a significant milestone for the blockchain industry, as it indicates growing acceptance and adoption of blockchain technology by traditional financial institutions.

The launch of the BSN is expected to bring several benefits to financial institutions, including increased efficiency, transparency, and security in post-trade processes. By using blockchain technology, the network will provide a tamper-proof and immutable record of transactions, reducing the risk of errors and fraud.

The BSN also has the potential to drive innovation in the financial industry, as it provides a platform for developers to build and deploy blockchain-based applications. This could lead to the development of new financial products and services, as well as the automation of existing processes.

Overall, the launch of the Blockchain Settlement Network marks a significant development for the blockchain industry and the financial sector. As more traditional financial institutions recognize the potential of blockchain technology, we can expect to see increased adoption and innovation in this space.