Note from the CEO: We are constantly amazed at just how many applications for blockchain technology are still in their infancy. So much to apply, so little time. This makes the case that the buy side is not going as fast as the sell side. The article aslo notes that the CFTC (futures) is reading the blockchain playbook for applications.
“Blockchains have attracted significant interest in the financial sector, a rare occurrence for a new technology in an industry not known for being at the forefront of technological innovation.
However, dig a little deeper into where the interest is coming from, and you’ll see a host of sell-side financial institutions and back-office groups working on prototypes. Most of the R3 consortium members, for example, are sell-side banks. Notably absent is the buy-side, made up of pension funds, mutual funds, hedge funds, private equity and other money management firms.
The buy-side has different structures and mandates, but at the end of the day, investor risk-adjusted returns are a primary concern, and the blockchain can help with that.”