The Know-how of Leveraging Blockchain for Asset Management

Capital Markets CIO Outlook | Friday, January 25, 2019

The blockchain can today revolutionize the transfer of assets between business networks. The distributed stock of blockchain means that the movement of assets between parties is completely transparent. Also, all transactions relating to this asset are auditable and verified.

Asset management on a blockchain network helps to solve dispute resolution problems and to improve the time required to resolve data differences. The companies that adopt it early reap the benefits greatly.

Transactions on a blockchain are immutable as they cannot be changed without the network’s permission. This means that all the activities carried out on an asset are checked, and an accurate record is created for the asset managers. They use these records to analyze performance, risks, and make strategic decisions in their planning cycles about their equipment. This also makes the sharing of data, such as asset history, across multiple providers and partners, more fluid and flexible. By managing the collection and sharing of data between partners, it ensures that records are consistent and complete. This ensures that there are no questions created by incomplete or missing data throughout the life of an asset.

Check Out: Top Enterprise Asset Management Tech Companies

Smart contracts are short code blocks that automate certain tasks. In asset management, these tasks can be anything from the automatic sale of a fund based on the rules laid down by the customer to the actual execution of a contract between the customer and the manager of assets. Smart contracts eliminate the need for lawyers in certain situations while automatically and almost instantly performing contracts and rules-based executions.

Blockchain technology is not only secure, but it can also be fast. A properly designed blockchain asset management can provide near-real-time asset tracking performance, giving managers quick insights into data drift and changes that can affect the portfolios of their clients.

The shared ledger of blockchain lays the foundation for future transparent, auditable, and trusted business processes. With extensive potential in many industries, asset management will greatly benefit from blockchain technology. If companies can quickly and definitively share information between different parties, they can streamline the way their data is processed.