Growth of Blockchain Changing Landscape of Financial Industry

With the initial hype surrounding blockchain technology beginning to settle, more and more companies are developing solid use cases and exploring opportunities for blockchain commercialization.

Many are adapting to blockchain for managing financial, medical and legal records -- a scenario in which blockchain might eventually replace banks, credit agencies, and other traditional intermediaries as the gatekeeper of trust and reputation. Gartner Inc. projects that blockchain's business value-add will grow to $176 billion by 2025.

A group of big financial institutions wants to use the blockchain to make it easier and less costly to track home mortgages packaged into securities. Credit Suisse Group AG, U.S. Bancorp, Wells Fargo & Co. and Western Asset Management Co. said recently that they successfully tested the distributed ledger technology as a way to standardize the data involved in securitized home loans and make it more transparent, according to an article published on Bloomberg.com.

Block One Capital Inc., an investment issuer focused on the emerging blockchain and digital currency markets, is pleased to announce that it has entered into a definitive agreement with Finzat Block LLC to acquire 40 percent of the New York, USA-based mortgage blockchain company. Under the terms of the definitive agreement, the company has paid Finzat US$600,000.

In order to incentivize and spur the ongoing development of the Finzat business, Block One has offered to make an additional cash payment to Finzat upon the completion of certain milestones, and has offered certain management an option to acquire 6 percent of Block One's ownership if Finzat completes a financing, such as an initial coin offering, approved by Block One.

"We are excited to have finalized our investment in Finzat and continue to be impressed by the team and the steadfast progress they have made in taking the concept to prototype stage and commencing early development, while at the same time engaging with stakeholders in the U.S. mortgage market," said David Berg, CEO of Block One.

Finzat's business proposition is to streamline and digitize the approximate ten trillion dollar United States mortgage market using innovative blockchain applications to create a system, which is Simple, Auditable, Fault-tolerant and Efficient (SAFE).