Investment Funds Network to Migrate Entire System to Blockchain in 2019


Investment funds transaction network Calastone, a founding member of the Linux Foundation-led Hyperledger Project, is shifting its entire system to the blockchain.

The firm, which assists its client sell their funds all over the world via banks and financial advisors, expects to complete the switch to what it is calling the Distributed Market Infrastructure (DMI) next year in May.

The move is expected to radically transform how funds are traded especially in an era of rising costs by creating a global funds marketplace that will allow both buyers and sellers to connect and transact.

Per a press release, Calastone’s client list consists of over 1,700 organizations for which it offers back office and even middle office services in 40 global markets. The likes of JP Morgan Asset Management, Invesco and Shroders are some of its clients.

Enhancing Efficiency

The move by Calastone to adopt distributed ledger technology will see over 9 million messages involving transactions that are passed between various counterparties completed on blockchain. At the moment, the process involves sending three separate messages – one message to place orders, a second one to confirm receipt of the order and another to confirm the price.

The process is also laborious and inefficient as the firms ranging from asset managers to transfer agents have to enter the same data and this is time-consuming, expensive and error-prone.

According to Calastone, the adoption of blockchain technology could save the global fund industry approximately US$4.3 billion in annual costs outside of the U.S. market – there is already a centralized system for trades settlement in the United States known as the Depository Trust and Clearing Corporation.

Investor Pressure

The cost-savings, coming at a time when the industry is under pressure from investors to reduce fees and tame rising expenses, will be achieved by pooling both trading and settlement processes. The pressure from the investors is not unwarranted as the funds industry is falling behind other sectors in the financial services category with regards to the adoption of new technologies. Per the CEO of Calastone, Julien Hammerson, the existing system is not sustainable:

“Funds remain a vital investment vehicle, though remain hampered by continually rising costs and threat of competition, ultimately rendering the current system economically and operationally unsustainable. Through leveraging blockchain technology, the DMI transforms the way in which funds are traded, enabling an investment management community that can meet the changing needs of investors.”

Additionally, investors are seeking faster transaction speeds and transparency and the DMI is expected to improve the investor experience in the wider value chain.

Featured image from Shutterstock.

Get Exclusive Crypto Analysis by Professional Traders and Investors on Hacked.com. Sign up now and get the first month for free. Click here.

Advertisement



Author: Mark Emem

Source link

Related posts

16 Thoughts to “Investment Funds Network to Migrate Entire System to Blockchain in 2019”

  1. Cynthia Voeller

    Manual

  2. Brittani Boulay

    When visiting blogs, i usually discover a very good content like yours

  3. Quinton Trisler

    Thanks a lot for the blog post. Really looking forward to reading more.

  4. Emmitt Dallen

    I simply must tell you that you have written an excellent and unique article that I really enjoyed reading. I’m fascinated by how well you laid out your material and presented your views. Thank you.

  5. service virtualization

    … [Trackback]

    […] Read More to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  6. carpet cleaning companies in welwyn garden city

    … [Trackback]

    […] Information to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  7. หุ้นnova87

    … [Trackback]

    […] Find More on that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  8. cvv dumps shop

    … [Trackback]

    […] Info to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  9. buy dumps cvv

    … [Trackback]

    […] Find More Info here to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  10. nova88

    … [Trackback]

    […] Find More to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  11. DevOps Services Providers

    … [Trackback]

    […] Here you can find 38129 additional Information on that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  12. สล็อตวอเลท

    … [Trackback]

    […] Find More Information here on that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  13. sbobet

    … [Trackback]

    […] Read More on that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  14. เงินด่วน

    … [Trackback]

    […] Find More Info here to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  15. le fournisseur gel

    … [Trackback]

    […] Info on that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

  16. cornhole game

    … [Trackback]

    […] Find More on to that Topic: tradingbtc.com/2018/12/03/investment-funds-network-to-migrate-entire-system-to-blockchain-in-2019/ […]

Leave a Comment