How is blockchain technology useful for traditional financial institutions? [duplicate]

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There is a lot of interest in “traditional financial institutions” like banks, credit card companies etc. around blockchain technology. I don’t quite get why. As I see it, the main innovation in Bitcoin is blockchain technology, and its purpose is to enable trustless, permissionless consensus achieved with pseudonymous validators; and it works well with “on-chain” assets like cryptocurrency. However, in the world of traditional finance, all participants are already authenticated and entities like validators require legal identities. “Off-chain” assets like real estate and securities in the real world already map to off-chain jurisprudence. The information on the blockchain about “who-owns-what” for these assets has to have a one-to-one correspondence with what the law says. Therefore, achieving trustless, permissionless consensus with pseudonymous validators is not a requirement.

The traditional financial system is built around trusted third parties and permissioned identity management systems – and permissioned, distributed ledgers are just the existing banking system. So what is the additional value that blockchain technology brings to the traditional financial network? Why are the these institutions falling over themselves in trying to bend, squeeze and twist this technology to fit it into their work processes? Aren’t they just trying to fit a square peg into a round hole?

Thanks for any light that someone can throw on this.

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