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How Blockchain Will Impact Asset Management

  • Posted by: ,  Chief Executive
  • 12 August 2016
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Blockchain may transform the way the investment industry works

There is a growing consensus that Blockchain technology is the "real deal". Although it may be over-hyped, it is here to stay, and has the potential to transform the way the asset management industry will work in the future, creating winners and losers.

Blockchain Future Technology

In the last few months some great papers have been written on the topic, arguing that Blockchain could provide genuine opportunities for asset managers to make significant cost savings and serve clients better. It is unclear whether the change will be evolutionary or disruptive, but there is a consensus that change is coming. Senior executives in asset management need to ensure that their organisation gets to grips with this distributed ledger technology and positions itself accordingly.

How will Blockchain impact the Financial Industry? (Robeco, 2016)
​Blockchain -  the infrastructure behind Bitcoin - 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 possible applications in banking, insurance and asset management.

Unlocking Economic Advantage with Blockchain: A Guide for Asset Managers (Oliver Wyman, 2016)
This report, co-authored by Oliver Wyman and JP Morgan, explores how blockchain may evolve and the issues that asset managers should address today. The report argues that blockchain provides genuine opportunities for asset managers to make significant cost savings and serve clients better.

The Distributed Ledger Technology Applied to Securities Markets (ESMA, 2016)
This discussion paper assumes that the reader is familiar with the mechanics of distributed ledger technologies, and is aimed at technology professionals working in Fintech companies and financial institutions. It explores how DLT can be applied to securities markets and the issues surrounding it.

The Impact and Potential of Blockchain on the Securities Transaction Lifecycle (SWIFT, 2016)
This SWIFT paper explores the potential impact of blockchain on post-trade processing in global securities markets, and is based on interviews with professionals working in post-trade processing and distributed ledger services.

The macroeconomics of central bank issued digital currencies (Bank of England, 2016)
This paper has been authored by Michael Kumhof and John Barrdear of the Bank of England. In it, they examine the macroeconomic implications of issuing central bank digital currency on GDP growth.