Blockchain technology at large financial corporations

http://www.markit.com/Commentary/Get/05042016-In-My-Opinion-Blockchain-disruption-or-distraction

The author gives some interesting insider information about the efforts large financial corporations are making to research and adopt blockchain technology. He describes a lot of interest and discussion, lots of money spent, and attempts to develop industry standards. According to him, the finance industry seems confused about what blockchain is and what it is good for, and he sees the focus on consensus rather than bold unilateral moves as indicating a certain lack of confidence.

The finance industry is hoping that blockchain technology could simplify certain regulatory compliance problems and create various cost savings. This is undoubtedly true, but seems to miss the real potential of blockchain. It seems to me, at least based on this commentary, that major innovation in the area of blockchain is unlikely to come from the financial establishment in the short term.

In the longer view, I have worries about how blockchain will be used in the finance industry, because it could be used to create complex and innovative trading instruments which could conceal risk better than ever before and contribute to financial crises, like we saw in 2008 with financial instruments such as CDOs and synthetic CDOs.