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- Calastone, a network of investment fund transactions based in London, has announced that it is transferring the entire network into blockchain in May 2019
- Calastone serves over 1,700 modules including JP Morgan Asset Management and Schroders
Was announced this week Calastone, an investment fund based in London, will transfer its entire transaction network to Blockchain from May 2019. Calastone specializes in providing back office and model office services to companies around the world such as JP Morgan Asset Management, Schroders (SDR.L) and Invesco.
Currently, a bank must send three sets of messages to execute their transactions. The first is a message to place orders, the second is to confirm receipt and the third to confirm the price. However, this method is often seen as unnecessarily wasteful in terms of time and stressful.
According to Calastone, by moving these messages the blockchain will save up to £ 3.4 billion for the company. Beyond that, it can help establish an industry standard that will probably be welcomed due to the view of many investors that transaction fees should be reduced.
"The more you can automate, the more you risk, the more you streamline, the more you accelerate," said Andrew Tomlinson, Calastone's marketing manager.
On the one hand, the use of Blockchain to create cryptocurrency, its most famous product, is very energivorous and involves a considerable cost, which led companies to relocate to reduce mining costs and small-scale miners theft electricity to extract currency.
On the other hand, transaction costs for sending funds through blockchain Autumn it decreases every year even if the amounts sent increase.
The use of the blockchain to send information is not a new concept. However, a company the size of Calastone that moves its entire network into blockchain is a bold move and one that can help accelerate the adoption of Blockchain in general.
Considering the fact that Calastone works with over 1,700 modules including industry heavyweights like J.P Morgan, you can expect to see similar ads coming up.
