Five British Fund Giants Secretly Research Bitcoin Technologies, Media Reports

News and Analysis

Five major fund managers from the UK, namely Schroders, Henderson Global Investors, Columbia Threadneedle, Aviva Investors, and Aberdeen Asset Management, are secretly running a test to find out whether the bitcoin’s underlying technology capable of reducing expenses involved in trading.

As reported by the Financial Times, the companies intend to use the technology to increase the speed of illiquid securities’ ownership transfer. Potentially the technology may cut operational expenses, reduce fewer staff to be involved, and remove intermediary banks from transaction schemes.

The publication also claims that the abovementioned companies may be partnering with auditing firm KMPG, as well as some unnamed fintech companies and startups.

Amin Rajan, chief executive of Create Research, a consultancy, told the paper:

“Asset managers are wary of transformational changes, since they are dealing with other people’s money. Systems failures can cause huge reputational damage.”

Blockchain is very popular among financial institutions these days. For instance, JP Morgan Chase partnered with New York-based startup Digital Asset Holdings launched an experimentap project to implement blockchain technology in banking. An inter-bank consortium, R3, acts as an umbrella organization for more than 40 major banks from around the world, and researches implementation of the blockchain in banking.

However, while some institutions have already deployed the technology, some other companies, like asset managers, have only begun embracing bitcoin’s underlying technology.

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