Investment research firm Citizens JMP Securities released analysis this week claiming blockchain adoption could accelerate global economic growth by eliminating "friction costs" in payments, settlement, and ownership verification, though the report provided no quantified GDP impact projections.
Analysts led by Devin Ryan, the firm's director of financial technology research, argued that around-the-clock markets and near-instant settlement could increase capital velocity by reducing trapped collateral and counterparty risk across financial systems.
The firm pointed to the New York Stock Exchange's announcement of a blockchain-based tokenized securities platform as evidence that traditional infrastructure operators are integrating the technology into core systems.
Economic Impact Claims
Citizens JMP's analysis contends that blockchain infrastructure could support economic expansion through faster capital recirculation, expanded investable asset classes, and systems better suited for an "increasingly digital, AI-enabled world."
However, the research provided no peer-reviewed methodology, quantified GDP multipliers, or timeline for measurable economic effects from blockchain implementation.
The report emphasized that institutional adoption is transitioning from pilot programs to production deployment, citing the NYSE platform's planned support for 24/7 equity and ETF trading with immediate settlement via tokenized shares.
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NYSE Platform Context
The NYSE venue - pending Securities and Exchange Commission approval - would combine the exchange's Pillar matching engine with blockchain settlement infrastructure supporting stablecoin funding and multi-chain custody options.
Tokenized shares would remain fungible with traditionally issued securities and preserve standard dividend and governance rights, according to parent company Intercontinental Exchange.
ICE provided no regulatory approval timeline or launch date for the platform, which requires clearing house rule changes and institutional investor approvals to hold blockchain-based assets.
Verification Gaps
Citizens JMP's assertion that faster settlement reduces "friction tax" lacks concrete cost-benefit analysis comparing blockchain implementation expenses against existing T+1 settlement infrastructure.
The firm's capital velocity claims assume regulatory frameworks will accommodate tokenized securities, custody arrangements will satisfy institutional compliance requirements, and tax reporting systems can process real-time settlement - conditions not yet established.
Traditional financial infrastructure faces substantial transition barriers including regulatory capital treatment of on-chain assets, stablecoin qualification standards for securities settlement, and interoperability between blockchain networks and legacy clearing systems.
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