Blockchain Technology and the Asset Management Industry

Table of Contents

Global Developments in Blockchain Technology

Blockchain and the Asset Management Industry

Key Takeaways for Asset Management Firms

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Global Developments in Blockchain Technology

A recent World Economic Forum survey suggested that by 2025,

10% of global GDP will be

stored on a blockchain

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Banks are increasing investment in blockchain technology globally

Blockchain and the Asset Management Industry

Confidential and Proprietary

Evolution of Blockchains

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Public Blockchains

Permissioned

Non Permissioned

Financial Institutions

Public Use

Trustless

Trusted

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Bitcoin

Bitcoin introduced the concept of public blockchains in 2009. Private blockchains, like Paxos’ Bankchain, are built to meet the needs of financial institutions, using permissioning to make all participants accessing the shared ledger known.

Private Blockchains

Private Blockchains Offer Key Benefits for Asset Management Firms

Secure, Immutable Records

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Stable, Distributed

Infrastructure

Real-Time Asset Control and Tracking

Real-time settlement

Direct fund subscriptions and redemptions

Enhanced AML / KYC

Blockchains will deliver new efficiencies to the asset management industry

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Key Takeaways for Asset Management Firms

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Blockchain technology is in its early stages with new innovations and use cases emerging continuously

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Blockchains will directly impact settlement times, fund subscriptions and redemptions and AML/KYC

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Now is the time for asset management firms to identify relevant use cases and develop a blockchain strategy

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Experimentation, collaboration and willingness to embrace blockchain technology are important to win in the future

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