The Blockchain Effect on Investment Funds

Blockchain was originally considered to be the innovative technology that only supported cryptocurrencies like bitcoin and ethereum. Recently the technology has been garnering attention from investors and companies as an infrastructure solution capable of bringing disintermediation to all industries through the execution and recording of transactions.

Although the idea of a fully decentralised public permissionless blockchain may be miles away, in the interim, blockchain technology still has the potential to transform a wide variety of practices and products due to reduced costs, enhanced risk mitigation and greater efficiency through the use of private blockchains and trusted third parties.

The Cayman Islands investment funds industry can capitalise on this opportunity to retain its funds-sector dominance through the adoption of blockchain components such as tokenisation, digital identities and smart contracts. While the market has already seen the emergence of tokenised funds, a fully blockchained investment fund is still at the theoretical stage — but what would one look like?

 

Originally published by In-House Community.

 

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