Blockchain-Based Infrastructure could save Billions of Mutual Funds
February 23, 2018 11:50 am
Blockchain could bring Financial Benefits to the Asset Management Industry
According to the reports, it is said that switching to a distributed blockchain based infrastructure could bring particular financial advantages to the asset management industry.
The report from Calastone, which is a transaction network platform for mutual funds’ industry, predicted that switching into the blockchain technology can bring significant beneficiaries for the global mutual funds market by over $2.5 billion a year.
Calastone’s deputy chief executive, Ken Tregidgo, told that using a distributed market infrastructure could be used to avoid different companies having to input the same data, thus saving time and reducing errors.
During the research, Calastone used data from a 2016 Deloitte study and calculated the Potential Basis Point (BPS) savings in key global markets including UK, Ireland, Luxembourg, Hong Kong, Singapore, Taiwan and Australia.
Julien Hammerson, Calastone’s CEO, declared the results to highlight the advantages of using blockchain for automating the full life-cycle of mutual fund transactions, from order placement until the settlement and payment process ends.
Recently, Lenovo announced that it is going to Adopt Blockchain Technology for Document Validation with the US Patent.
“We have the current authentic physical document even if multiple paper copies exist and multiple people have made entries in the chain of modification. If multiple, fake copies of a physical document came into existence, they would show up as orphaned blocks in the chain.”