Institutional investors, wealth managers foresee increased blockchain use in AM

On the 02/18/21 at 8:03AM


Tuba Raqshan

Almost 90% of institutional investors and wealth managers believe that there will be a dramatic increase in the use of blockchain technology within the asset management sector in the next five years, according to a study by Global Palladium Fund (GPF).

Blockchain will become increasingly important for asset managers because it is a part of the growing trend to provide more transparency around investments, according to 51% of professional investors, revealed the study. Additionally, 35% believe that it is due to investors wanting more information on the investment vehicles they invest in, followed by 12% who cited growing regulatory demands and 2% cited cost reduction. “The asset management industry is becoming more competitive and challenging in terms of meeting client demands and regulatory requirements,” said Alexander Stoyanov, chief executive officer of GPF. Almost all (90%) of professional investors believe that over the next five years, investment management firms will be under growing pressure from clients to use blockchain technology to provide greater security and transparency around their work, stated the study.

GPF, which recently listed four metal Exchange Traded Commodities (ETCs), is the first ETC provider to use blockchain technology to record bar information into Distributed Ledger Technology (DLT). This blockchain use is in addition to traditional recording processes used by the custodian. “This is the first step in the use of blockchain to introduce greater transparency for investors in precious metals,” added Stoyanov.

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