Asset managers to scramble for blockchain cost savings

BlockchainThe estimated €1 billion invested in blockchain technology in the last 36 months is set to double by the end of 2017, research shows. Investit, an investment management consultancy, says the catalyst is growing awareness of the potential of blockchain technology and the prospect of it superseding traditional transaction networks, saving the industry billions of dollars in the process. Blockchain is a computer network that supports bitcoin. It is effectively a digital database of financial events, continuously maintained and verified in “blocks” of records, shared among various parties. Payment ledgers can be instantly updated in multiple locations without a single, centralised authority. To date, firms have used the network to upgrade back-office systems and make contract execution more efficient. However, Investit says investment managers could use blockchain to replace their third-party clearing networks and offer near real-time settlement in a secure distributed ledger. Investit estimates large financial firms have identified between 10 to 20 blockchain prototype applications. ©2016 funds europe

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