Why Asset Management Firms Shift their Focus to Blockchain

Blockchain,the technology behind Bitcoin,is currently gaining popularity today. Many asset managers and investors from different financial companies keep their eyes peeled for Blockchain. Due to the fact that this technology is capable of improving and disrupting current processes and systems,institutions and small companies dedicate resources to learn its ropes and apply it to their business.

Why are these firms interested in the benefits of Blockchain? What are its practical applications and the promises it gives in terms of innovation?

Benefits of Blockchain Technology

Blockchain works as a shared record or distributed ledger. It is designed to be fully flexible and to provide a good number of functions in the asset management lifecycle. When you implement Blockchain,you get the benefit of a more streamlined portfolio management,faster trade clearing and settlement,as well as easier compliance with anti-money laundering regulations. The technology lets you get rid of redundant functions,minimize operational costs,and maximize your means to provide clients with good experience. Providers of regulated blockchain hedge fund recognize the fact that more and more businesses in the industry can benefit from this technology.

The technology is complicated,making it more challenging to integrate in any given business strategy. Nevertheless,it can be a great boost to an asset management firm’s various processes. It can be used first as a solution to improve middle- and back-office internal operations. In the long run,it can serve as an extensive client solution.

In terms of hedge funds,Blockchain can be used initially as investor and owner trackers,minus the need for a fund administrator. The staff in charge of portfolios can use a distributed ledger to manage in real-time complicated asset ownership and investment vehicles. This eliminates the need for manual paperwork and related duties. At the same time,investors can conveniently monitor their holdings and investment allocations at any given time. Hedge fund managers can also benefit from faster consolidation of statements and reports.

These are only some of the reasons Blockchain is becoming more and more popular these days,talk to an expert to learn more about its benefits.

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