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A new report from Juniper Research has found that deployment of blockchain for cross-border settlement will drive increasingly significant cost savings for banks.

This can rise from USD 301 million in savings in 2021 to USD 10 billion in 2030. Blockchain implementation in cross-border settlement will allow stakeholders to use improved payment transparency and traceability; a critical advantage in an omnichannel payments market.

The report, called Blockchain in Financial Services: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2030, found large trading nations, such as the US and China, will see the biggest cost savings from blockchain use, aided by high remittance volumes and increasingly favourable regulatory environments. In these high-value remittance markets, potential for blockchain to meet critical requirements of fast, reliable, and transparent payments will be a key driver of adoption.

As these networks build, Juniper Research expects blockchain adoption to increase over the next decade, with an expected 2 billion cross-border transactions facilitated by blockchain in 2030. However, the reluctance from payment stakeholders to change established business practices and shift away from legacy systems represents a significant barrier to widescale blockchain adoption. Clear communication of blockchain benefits against the investment required for implementation will be crucial to stakeholder buy-in.

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