“Blockchain’s potential is capturing the attention of financiers like JPMorgan Chase and Goldman Sachs as well as technocrats, but asset managers have been slow to adopt it.
While some big banks and tech start-ups are raving about blockchain technology, asset managers are proving reluctant to use it.
According to new research from State Street, only 7% of institutional asset owners or managers say they’re currently working to adopt blockchain technology, despite the fact that the majority — 57% — expect it ‘to be widely adopted in the investment industry in the next five years.
Blockchain, the technology behind Bitcoin, is a ledger that works somewhat like Google spreadsheets, allowing updates from many different parties. The ledger can be changed only if there is a group consensus, giving the system an additional layer of security and cutting out the need for a central authority to approve transactions between finance companies. Blockchain has the potential to eliminate back office jobs with self-executing contracts.'”