Banks Turn To Blockchain To Fight Cyber-Crime

Forty-two of the largest banks, including Goldman Sachs (GS), JP Morgan (JPM), Citigroup(C), Wells Fargo (WFC) and Bank of America (BAC), have already begun testing Blockchain. The motivation is largely economic. The banks believe Blockchain will lead to annual back office cost savings of $20 billion. Stumping cyber-criminals would be an extra benefit.

When the financial services industry flocked to the SWIFT message system in the 1970s, few of them could have imagined hackers who would develop malicious software to rob untold millions. Fewer still would have believed member firms would respond by experimenting with non-proprietary software. It’s a brave new world for criminals and for the people trying to stay one step ahead.

You would think there would be a lot of cyber-security software companies that we could invest in to make some coin of our own off this phenomenon. But the industry is overvalued, and its services are being commoditized, a bad combination. Among the top names to watch, though, are Fortinet (FTNT), Palo Alto Networks (PANW) and Cyber-Ark Software (CYBR).

This article is brought to you courtesy of Jon Markman.

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