DLT: how a new technology may revolutionise asset management for the 21st century
Distributed ledger technology and tokenisation may be responsible for the biggest shakeup in fund management in years. Find out why.
The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.
New technologies will change the way we invest as well as bring the benefits of investing to more people. Distributed ledger technology (DLT) – a secure way of recording information, such as ownership details, in a decentralised computer network – will be the foundation of a new financial infrastructure.
Over the next decade almost all investments could be converted into digital assets using DLT. This will bring exciting benefits including: faster, safer and cheaper ‘on chain’ trading and settlement; more efficient private markets; assets that are split up into more affordable units – making investments more accessible.
We want to redefine what it means to be a modern asset manager. We’re making strategic investments in, and helping to operate, the infrastructure that will determine the digital future. For example:
Archax – We’re the largest external shareholder in the UK’s first regulated digital securities exchange. Archax allows institutional investors to access blockchain-based digital assets and acts as a bridge to the traditional capital markets.
Hedera – We’re the first asset manager to join the governing council of this cutting-edge DLT firm. Hedera is at the forefront of developing enterprise-grade technology that will enable the migration of traditional investments onto the DLT ecosystem.