This story was delivered to BI Intelligence " Fintech Briefing " subscribers. To learn more and subscribe, please click here . US banks recapitalized faster and secured more resources than those in Europe after the 2008 crisis, which has enabled them to be more proactive in the area of blockchain innovation, according to an article by Reuters . The article supports its claim by highlighting the greater number of patents for blockchain-based products that US banks have filed, as compared with European ones. It notes that only Switzerland’s UBS has filed such a patent to date, versus the "dozens" filed by Goldman Sachs, JPMorgan, Wells Fargo, and Bank of America. But this is not necessarily an adequate measure of progress. Arguably, European banks have been just as active in exploring blockchain-based products as their US peers, but they’ve taken a different approach to innovation — one based on collaboration rather than individual projects. Barclays , for example, developed a blockchain-based trade finance solution in September in partnership with fintech Wave. Santander , a Spanish bank, tested a blockchain-based, cross-border payments app in August in partnership with Ripple, and has invested in several blockchain-based startups. And BBVA’s VC fund recently invested in a blockchain-based browser. Moreover, Barclays and Credit Suisse cooperated with several other major banks to develop a complex, blockchain-based system for streamlining equity swaps, which was unveiled this week. US banks’ approach to blockchain innovation may backfire. Reuters is likely right to suggest that European banks are struggling to free up cash for individual innovation projects to a greater degree than their US counterparts. And this is probably the reason for the two different approaches — European and US banks have had to develop approaches to blockchain development that are suited to each region’s unique economic environment and […]
