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How blockchain is shaping the future of finance

June 15, 2017 • By TAB team

According to the FT, blockchain's adoption in the old world of wealth and asset management is not happening as quickly as many thought it might. In positive news, the number of job adverts on LinkedIn for blockchain-related positions has more than trebled in the past year. Near 10,000 people on LinkedIn list blockchain as a skill, half of them in the technology industry, a quarter in the financial services sector.

According to the FT, blockchain's adoption in the old world of wealth and asset management is not happening as quickly as many thought it might.

In positive news, the number of job adverts on LinkedIn for blockchain-related positions has more than trebled in the past year. Near 10,000 people on LinkedIn list blockchain as a skill, half of them in the technology industry, a quarter in the financial services sector.

Further, Calastone, the technology fund manager, said it had successfully used blockchain to buy and sell mutual funds under test conditions, in a move that could help spur a revolution in the asset management industry by cutting costs and improving efficiency.

However, this optimism wasn't reflected across the board. According to the FT, of 458 asset and wealth managers, only 27 per cent of wealth managers offer robo-advisers, and only 31 per cent use big data.

Asset managers have also been slow to embrace blockchain. It is used by just 6 per cent of the market.

It's clear the industry needs to modernise. But it's going to take some bold first movers to lead the way.

P2P and crowdfunding are also prime candidates for the blockchain revolution that is coming our way. A recent meeting between Emily Mackay, Crowdsurfer CEO, and Peter Smith, Blockchain CEO, confirmed the potential, but the costs of providing blockchain needs to fall further if it is to be economical on smaller transactions. Exciting times for all involved in the industry. You can read more about blockchain on the Crowdsurfer blog here.