All topics

How Blockchain Will Impact Asset Management

  • Posted by: ,  Chief Executive
  • 28 August 2018
  • Views2440

Blockchain may transform the way the investment industry works

Has blockchain technology been over-hyped, or will it become a mainstay of the financial services industry, and in so doing, completely transform the ways in which asset managers conduct their business?

Below we have listed some of the top whitepapers from consultants, regulatory bodies, and asset managers on the disruptive potential of blockchain and distributed ledger technology within asset management.

Blockchain Future Technology

Distributed Ledger Technology – An Emerging Consensus on the Buy-Side (Hunt and Mills, 2018)
The Investment Association presents a variety of views on distributed ledger technology (DLT) and blockchain, helping to craft a business-driven framework on the application of the technology to the ultimate benefit of end consumers.

How will Blockchain impact the Financial Industry? (Robeco, 2016)
​Blockchain has recently received a lot of publicity. This excellent 30 page report from Robeco explains the distributed ledger technology, transaction flows and the eco-system, before exploring its applications in asset management.

2018 Global Blockchain Survey (Deloitte)
Deloitte’s 2018 survey of over 1,000 blockchain-savvy executives provides a unique perspective on the momentum shift from the initial exploration of blockchain technology to the construction and adaption of practical business applications.

Real use cases for Blockchain and DLT in the Asset Management sector (KPMG, 2017)
This 11-page paper by KPMG describes practical examples of how blockchain and distributed ledger technologies are working to disrupt the asset management industry. 

Distributed Ledger Technology: A new business model for the asset management industry (PwC, 2017)
The Fundchain initiative was developed to create a common understanding of distributed ledger technology; this paper describes a proof of concept for blockchain technology within the asset management industry.

Unlocking Economic Advantage with Blockchain: A Guide for Asset Managers (Oliver Wyman / JP Morgan, 2016)
This paper explores how blockchain may evolve, the impact it will have on the asset management industry, and the issues that asset management organisations should addressing today surrounding this new technology.

Distributed Ledger Technology: Implications of Blockchain for the Securities Industry (FINRA, 2017)
This paper from FINRA is intended to be an initial contribution to an ongoing dialogue with market participants about the use of DLT in the securities industry.

Distributed Ledger Technology in Payments, Clearing and Settlement (US Federal Reserve, 2016)
This paper provides a detailed discussion on payments, clearing and settlement, and the role of distributed ledger technology. It focuses specifically on peer-to-peer networking, distributed data storage and cryptography.

Realizing the Potential of Blockchain (World Economic Forum, 2017)
The World Economic Forum provides a framework for stakeholders from multiple industries to collaborate using blockchain technology and unlock opportunities that would not otherwise be available.

Responsible Investment and Blockchain: A Primer for PRI Signatories (PRI, 2018)
Blockchain technology has the potential to reduce fraud, and increase transparency and efficiency in multi-party transactions. This paper extrapolates use-cases of blockchain technology that are relevant for responsible investing.

The macroeconomics of central bank issued digital currencies (Bank of England, 2016)
Michael Kumhof and John Barrdear of the Bank of England examine the macroeconomic implications of issuing central bank digital currency on GDP growth.

Blockchain and financial market innovation (CAIA, 2017)
This article provides a brief overview of what blockchain technology is, how it works, and some potential applications and challenges.

Note: this is an update to an earlier blog piece that we originally penned in August 2016.