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Banks, Fortune 500 companies join Ethereum Enterprise Alliance

Smart contracts could eliminate billions of dollars of middlemen and bookkeeping, experts think. Wall Street is intrigued.

Major investment banks as well as several other Fortune 500 companies joined an effort to develop blockchain technology for use in reducing inefficiencies in financial interactions Tuesday.

Called the Ethereum Enterprise Alliance, companies including J.P. Morgan, Credit Suisse, Accenture and UBS joined Brooklyn’s ConsenSys, whose founder, Joseph Lubin is one of the creators of the Ethereum protocol.

Financial companies have long been interested in blockchain technology for its ability to create smart contracts, contracts which execute themselves automatically as soon as each party’s conditions are met. That setup would allow the companies to reduce middlemen and bookkeeping costs.

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