Digital Asset Management: How Fund-Managers Are Using Blockchain to Cut Costs
Digital asset management and the associated platforms are slowly entering the financial mainstream and becoming an emerging trend in banking. But are fund managers ready to take the plunge into DeFi (decentralized finance)? And how will they find ways to monetize investor interest as prices for major cryptocurrencies such as bitcoin have slumped?
Digital assets are seen as speculative investments in traditional finance due to the volatility of the market, but we have identified them as a long-term trend. As they move in the direction of gaining investor trust, we will continue to see the market scale and the pace of regulation increase.
Financial institutions need to secure their place in this potentially huge new revenue stream by integrating Web3 and digital assets into their business models and services.
Some big-name fund managers are well ahead of the curve and rushing into digital assets. For example, Blackrock recently penned a partnership with Coinbase.