A report by JPMorgan and consulting firm Oliver Wyman argues that blockchain technology presents an opportunity for asset managers to offer more sophisticated services to clients. The report said revenue opportunities will stem from improved data sources, greater liquidity and lower frictional costs fostered by blockchain. Asset managers will be able to serve clients in new ways, for instance through real-time reporting or alternate trading strategies. The study predicts blockchain adoption by asset managers will take place in three waves, the first of which will take shape between now and 2019. The last wave, during which the development of "critical infrastructure" around the technology will take place, is expected to occur between 2020 and 2030. The report said the current adoption wave will see the development of simple applications focused on data communication between network parties, while the second wave will give rise to systems used to store core transaction data. The study also noted that investment in blockchain startups has reached $300 million and continues to grow.
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