Blockchain and the Decentralization Revolution

A CFO’s guide to the potential implications of distributed ledger technology

With the advent of blockchain and increased adoption, J.P. Morgan’s Corporate Finance Advisory team, in conjunction with J.P. Morgan’s Digital Investment Banking team and Blockchain Center of Excellence, provides an informed view on the corporate implications of the rapidly changing interplay between finance and blockchain technology. Although the use of blockchain in the enterprise remains mostly in the proof-of-concept stage, CFOs and financial executives should continue to periodically evaluate the latest blockchain developments. Even in its early days, it is not difficult to see how wider adoption of distributed ledger technology could have far-reaching implications for corporate finance. Blockchain is just the latest in a line of technology developments that will require the focus and understanding of the entire C-suite as business models and markets evolve.

Blockchain by the Numbers

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$6 Billion

capital-raised

$6 Billion

capital raised via Initial Coin Offerings ("ICOs") in Q1 2018

$1.7 Billion

ico

$1.7 Billion

Largest ICO to-date1

$406 Billion

market-value

$406 Billion

current market value of all cryptocurrency in circulation

1,500+

circulation

1,500+

cryptocurrencies in circulation

$6.5 Billion

avergae-volume

$6.5 Billion

Bitcoin's average daily volume2

86,000+

projects

86,000+

Existing blockchain projects, including the bitcoin

Source: Coinschedule.com, GitHub, Coinmarketcap.com; market data as of 04/30/2018 1 According to Form D filings from 02/2018 and 03/2018; Telegram ICO (pre-sale) dated 2018 230-day average daily volume

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