Blockchain compliance tools can slash TradFi costs: Chainlink co-founder

Blockchain Compliance Tools Offer Massive Cost Savings for Traditional Finance, Expert Claims

Indian financial institutions could see significant cost reductions and efficiency gains through the adoption of blockchain-based compliance solutions, according to a recent statement by Chainlink co-founder Sergey Nazarov. He argues that these new technologies can streamline processes and substantially lower operational expenses.

Traditional Finance Burdened by Inefficiency

Traditional finance (TradFi) is often plagued by fragmented and expensive compliance procedures. Complex manual processes contribute to significant costs, potentially reaching into billions of dollars. Blockchain-based solutions offer a potential remedy by automating and simplifying these cumbersome operations.

The Promise of Blockchain: Faster, Cheaper, More Efficient

Nazarov suggests that blockchain-based investment products and compliance tools have the potential to be more than 10 times faster and cheaper compared to traditional finance offerings. This increased efficiency could spur greater adoption of digital assets by financial institutions across India.

Key Benefits of Blockchain Compliance

• Streamlined identity verification processes.
• Reduced costs associated with Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance.
• Improved efficiency and transparency in financial operations.

The adoption of blockchain technology could mark a pivotal shift in the Indian financial landscape, paving the way for more efficient and cost-effective compliance practices.