Boston-based asset manager State Street published a report on industry trends in 2020, highlighting the growth of cryptocurrencies and blockchain in the financial services industry.
The survey consisted of 101 North American asset management companies; 71 % of these companies have over $100 billion in assets under management (AUM). The findings show that about 65% of the respondents agreed or strongly agreed that blockchain and distributed ledger technology is likely to improve future financing solutions.
With even larger asset managers with over $500 billion under management, 92% had a positive outlook on blockchain, improving the industry.
According to the survey, 94% of the respondents already own digital assets and cryptocurrencies, while 69% of larger asset managers said that they have plans to increase their allocation for cryptocurrencies.
Nadine Chakar, the global head of State Street’s Global Markets, said: “It’s an exciting time for technology and innovation in the industry, and ultimately investors will benefit from new technologies and a wider range of choices for constructing portfolios.”
Most of the respondents were bullish on the new type of investment portfolio, and 62% of the respondents thought that tokenization would improve the risk management of traditional financial assets. 55% of the respondents agreed that tokenization would enhance security and improve transparency.
Image via Diego Lopez Montes