KPMG Reports – Blockchain investment booming in U.S., breaches 2017 record in H1 2018 itself
In the U.S., blockchain investments in just the first half of this year has topped last year’s total blockchain investments, a study by auditing firm KPMG showed. Among the top investments is Circle Internet Financial, which raised $110 million in a venture capital funding round in May.
Another major deal in the space was Paxos’ Series B funding round, which raised $65 million from venture capital firms RRE Ventures and Liberty City Ventures among other investors. The startup had said that the capital raised would be used to expand its operations.
Firms that explore the use of distributed ledger technology has been garnering a lot of attention from investors in the first and second quarters of this year.
However, the study highlighted the fact that these investments were generally seen in more experienced companies, or groups of businesses aiming to get additional funding rather than in new market entrants.
Blockchain tech can enhance processes across sectors
The study, which is a biannual analysis of fintech investments, said that the rapid rise in these investments can be attributed to the fact that distributed ledger technology can help in increasing efficiency within financial institutions.
Moreover, this technology can be applied beyond the financial space, and can be used for documentation management and in managing supply chain processes.
“While it has primarily been looked at from a banking and insurance point of view to date, the reality is blockchain opportunities abound and could enhance processes for any number of U.S. and global businesses,” KPMG pointed out.
KPMG outlook on blockchain investments
KPMG mentioned in the publication that it expects distributed ledger technology to gain momentum even as artificial intelligence (AI) and robotic process automation (RPA) drive cross-sector opportunities.
“Blockchain has the potential to transform banking and if banking systems were to be rewritten today they would be based on blockchain,” said Safwan Zaheer, head of fintech at KPMG U.S.
The study added that investments in enabling technologies like AI, RPA and blockchain are expected to grow over the next six months.
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