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February 27, 2018

Blockchain could save over £1.9bn for the mutual funds market

By Saloni Sardana

Using blockchain technology in the processes behind selling and buying mutual funds could potentially save over $2.7bn (£1.9bn) a year, according to Technology company Calastone.

This comes after a recent study by research and advisory firm Forrester already showed Calastone saved £458m in savings for mutual funds over the last six years by bringing automation to the major global fund markets.

Calastone’s fresh analysis showed the scale of savings blockchain- enabled distributed market infrastructure (DMI) could deliver to the global market.

In June 2017, Calastone completed the first phase of its blockchain-enabled distributed market infrastructure (DMI). Calastone announced in December last year that it would migrate its core network technology on to blockchain technology.

Calastone’s CEO, Julien Hammerson, said: “Our mission has been to address the frictional cost of trading mutual funds and Forrester’s research demonstrates the considerable value Calastone has delivered for the market already.

“While what we have achieved to date has enabled sizeable savings for the sector, our own analysis highlights how significantly these benefits can be accelerated when using blockchain technology to automate the entire lifecycle of mutual fund transactions, from order placement through to the settlement and payment, through our new distributed market infrastructure – from millions to almost £2bn each year in cost savings.”

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