Thread by @quant_network

Really interesting piece in today's @FT by @chrisflood_FTfm about how the @InvAssoc believes that using blockchain and digital ledgers would cut administration costs for asset managers. We agree.

Subscription required: ft.com/content/b29b8e…

Some highlights... 🧵

"Britain’s asset management industry is pushing the government to establish a new class of fund employing blockchain technology. The @InvAssoc, will call for the government to work 'at pace' to approve #blockchain-traded funds that will issue digital tokens to investors."

"Significant cost savings for end investors could be achieved by using the #DigitalLedgers known as #blockchain, to drive multiple efficiency improvements in the existing laborious processes involved in buying and selling mutual funds, according to the @InvAssoc."

"Chris Cummings, @InvAssoc chief executive, said it was vital that policymakers, regulators and investment industry participants should work together to 'drive forward innovation without delay'."

"Blockchain-traded funds, also known as tokenised or on-chain funds, could be rolled out as early as the end of the second quarter of 2023 if regulatory approval was expedited by @TheFCA."

“'Asset managers have realised that there is potential to generate alpha [market-beating returns] via tokenisation. Tokenised funds can deliver more transparency, instant settlement, improvements in data and analytics', said Brian McNulty."

We agree: quant.network/capital-market…