Jan 18, 2020 in BlockChain
Q: What is Transforming asset management in Blockchain

1 Answer

0 votes
Jan 18, 2020
• The removal of

intermediaries from asset

transfers by the blockchain

relies on a tamper-proof ledger.

Transactions can be verified

and traced without the need for

a trusted third party. Since

there is less human input, the

risk of error is substantially

reduced.

• Reduction of settlement/

delivery and compliance costs

following market transactions

as well as custodian costs for

collective investment

undertakings. The blockchain

can provide certification for

each stage of the process,

allowing a significant reduction

in overhead and operating costs

at this level. Although traders

may react in nanoseconds,

settlements can take several

days. Spanish bank Santander

believes that blockchain

technology will allow banks to

save US$ 20 billion each year by

reinventing the back office17.

Illinois start-up Blockchainiz is

currently developing projects in

this area, working in particular

with leading banks to reduce their

reconciliation costs in asset

management. For all compliance

issues, the data needed to ensure

compliance with applicable

regulations may be written onto a

blockchain that can be accessed

and audited by all parties or by

authorised parties, as applicable.

A new method of pricing assets:

the blockchain should help to

reduce fraud risk and to refine

risk assessments thanks to its role

as a distributed ledger enabling

all parties to obtain the data they

need. This could pave the way for

a faster, more efficient asset

pricing process.

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