UK-based global funds network Calastone has released research on Thursday, Feb. 22, showing Blockchain could save mutual funds up to $2.6 bln.
In a press release issued Thursday, the company, which uses digital solutions to automate funds investment and save on costs, said the Blockchain technology holds “significant value potential” for the industry.
“The numbers released by Calastone represent the tangible, financial value that a blockchain enabled distributed market infrastructure can deliver, through stripping-out many of the remaining inefficiencies currently embedded in the system, resulting in increasing cost, risk, operational and regulatory pressures,” it states.
Traditional finance has continued its public lauding of the promise Blockchain, the technology behind cryptocurrencies such as Bitcoin and Ethereum, represents for ageing infrastructure and legacy practices.
Last week, Cointelegraph reported on the bullish tone coming from the T3 Conference in Florida, during which financial advisors called Blockchain a “sociological innovation” and highlighted its benefits beyond the strictly financial.
Calastone’s findings come in conjunction with outsourced research into its own market impact since 2009. Digitization, it says, is responsible for the company saving the global funds market £458 mln ($635 mln) in that period.
In 2019, the proof-of-concept for “Blockchain-enabled distributed market infrastructure” will give way to its core network technology migrating onto the Blockchain, which will in turn enable savings to the tune of $2.6 bln for mutual funds worldwide, the company says.