Calastone is a global funds network that is based in the UK. On Thursday, February 22, it released a research, proving that Blockchain technology could save up to $2.6 billion mutual funds.
The company utilizes digital solutions to automate funds investment in order to save on costs. It has concluded that the Blockchain technology holds great value potential for the industry.
In their press release, they claim that the released numbers represent the financial, tangible value that a blockchain system can deliver to an enabled distributed market. This can be achieved through replacing many of the remaining inefficiencies that are currently embedded in the system and they are resulting in increasing risk, cost, regulatory and operational pressures.
Traditional finance is also lauding of the promise Blockchain, the technology that is behind popular cryptocurrencies such as Ethereum and Bitcoin. Last week in T3 Conference in Florida, the financial advisors referred to Blockchain as a sociological innovation and they highlighted that its benefits are not limited to the strictly financial.
The findings of Calastone come in conjunction with the outsourced research made into its own market impact since 2009. It states that the digitization is responsible for saving global funds market of $635 million (£458 million) from the company in that period.
What impact will Blockchain have in the near future?
The “Blockchain-enabled distributed market infrastructure” proof-of-concept will give way in 2019 to the core technology of the network migrating onto the Blockchain, which will enable savings to the level of $2.6 billion for mutual funds worldwide, the company states.