The global fund processing firm, Calastone, is the latest business to embrace blockchain in a bid to further digitize this part of the industry.
It seems as if every day brings more news of blockchain adoption. The technology is spreading its wings and flying far away from just being used for cryptocurrencies. The list of sectors that are using it is becoming increasingly long and varied, from art to healthcare. Whenever records need to be stored or paperless dreams need to be achieved, the technology appears to be a popular answer.
Blockchain Could Save Billions
According to Reuters, global investment firm Calastone has announced that May 2019 will see its whole system move onto the blockchain. The firm, which is a fund transaction network, has a list of well-known clients including JP Morgan Asset Management and Schroders. By providing back- and middle-office services, Calastone gives their clients the ability to sell their funds all over the world through financial institutions.
At the moment, this is done through a time-intensive service which consists of sending three messages between firms when they want to buy into a fund. The first message is to place the order, the second is to confirm the receipt thereof, and the last one is to confirm the price. With over 1,700 firms to take care of, Calastone facilitates about nine million of these messages every month worth about $217 billion. By migrating to blockchain, Calastone believes that annual savings could be as much as $4.3 billion.
The Chief Marketing Officer at the firm, Andrew Tomlinson, briefly explained what the move could encourage, saying:
The more you can automate, the more you de-risk, you more you streamline, the more you speed up.
It’s For More Than Just Crypto
The technology has grown in leaps and bounds from its initial purpose of supporting virtual currencies like Bitcoin and the like. As mentioned previously, it can be the ideal solution for businesses that rely on record keeping or data transactions.
Live Bitcoin News has previously reported that many big names have integrated the technology into their supply chain management processes. One of these is major U.S. retailer Walmart, who will be using blockchain in its food traceability processes. Recently, we also reported on how the crude oil industry will be benefiting from blockchain by using it as part of their trading operations.
The growth of the industry has resulted in many countries vying for that title of “blockchain hub” with nations like Malta and the Bahamas working towards making their islands an attractive option for blockchain developers. In addition, Austria has recently announced plans to launch their Austrian Blockchain Center.
Do you think that Calastone’s blockchain migration will be a success for the firm? Let us know in the comments below!
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