Microsoft Inc. has partnered with R3, a consortium consisting of 43 financial institutions, to create a strategy to speed up use of blockchain technologies. The partnership is believed to be an attempt by Microsoft to keep up with competitors such as Google and Amazon who are offering their technological expertise to banks and other financial institutions looking to utilize blockchain technologies in their everyday operations.
The first commercial deployments of Microsoft’s blockchain are expected to go live in about a year, although significant commercial adoption of blockchain technology is estimated to take longer. Microsoft’s partnership with R3 may give it an advantage when it comes to winning blockchain contracts from banks that are R3 member companies, including Barclays, Credit Suisse Group and UBS Group.
Banks and financial institutions services will be able to benefit from services such as cryptocurrencies and smart contract platforms, alongside being able to offer consumers greater financial security and ease of use with the implementation of blockchain technology.
The global bitcoin technology market is estimated to grow at a CAGR of 7.26% over the 2015-2020 period, according to a recent market report. However, this estimation could be higher than predicted if global financial institutions continue to partner with technology leaders and implement FinTech services in their offerings.