Technology company Calastone has estimated that based on daily trade volumes of funds in the UK, Ireland, Luxembourg, Hong Kong, Singapore, Taiwan and Australia Blockchain tech could save asset managers $2.7bn a year.
Ken Tregidgo, deputy chief executive of Calastone, said significant cost savings could be made by using distributed market infrastructure. For each transaction, different companies, ranging from transfer agents to asset managers, often have to input the same information, which is time-consuming and can be prone to errors. “That is a cost that is being paid and is ultimately being paid by the end investor, by you and me,” he said. Andrew Tomlinson, chief marketing officer at Calastone, added: “There is £1.9bn that is being burnt in the cost of buying the fund rather than accruing and adding value to the investor.”