Despite Positive Outlook, New Research from State Street Reveals Asset Owners, Managers Lack Readiness for Blockchain
May 31 2016 - 1:01PM
Business Wire
New research from State Street Corporation (NYSE:STT) on
blockchain, the distributed ledger that maintains a continuously
growing list of data records hardened against tampering and
revision, unveils that while a majority of asset owners and asset
managers (57 percent) expect it to be widely adopted in the
investment industry in the next five years, only seven percent
currently have initiatives underway to support it.
The survey, conducted in partnership with Oxford Economics,
found that 74 percent of asset owners say they believe blockchain
will achieve the scale needed for adoption compared to only 42
percent of asset managers. Despite asset owners’ optimism, 48
percent said they don’t know enough about it, and asset managers
are even less confident, with 78 percent noting that they need more
education.
“A majority of institutional investors are well aware that
blockchain, an ‘emerging technology,’ could become an everyday
application in the near future,” said Antoine Shagoury, global
chief information officer at State Street. “What’s clear from our
research is a lack of readiness and uncertainty for how to best
plan for this disruption, and a need for more education.”
Additional survey findings include:
- IT and investment teams will be most
affected:The majority of respondents (80%) agree that
blockchain will have the greatest impact on IT departments,
demonstrating that institutions recognize the need to introduce
talent with the skills necessary to adapt to new technical demands.
Additionally, 81% of asset managers agree that the adoption of
blockchain will equally disrupt their own jobs on investments
teams.
- Security represents the biggest
concern:While cryptography is a core component of the
blockchain infrastructure, nine-out of-10 respondents worry about
how security implementation in blockchain will address existing and
future requirements, an issue that the industry needs to tackle in
order for wide-scale adoption.
- The private use will trump public
adoption:Regardless of industry-wide adoption, more than half
of asset owners and asset managers (55%) are convinced that
blockchain is most likely to be used privately by companies with
their clients. Only 13% believe blockchain will be used broadly by
the public.
“We’re excited by the opportunity blockchain presents and are
working to make it a tangible reality for our businesses, partners
and clients,” said Hu Liang, senior managing director and head of
State Street’s Emerging Technologies Center. “We are actively
supporting several blockchain and blockchain-inspired initiatives
both internally and as part of a handful of consortia of the
world's biggest banks and technology companies.”
About This Research
The survey, commissioned by State Street and conducted by Oxford
Economics, was comprised of respondents from 50 asset owners and 50
asset managers, inclusive of asset management firms, private
pension funds or retirement funds, and public pension and
retirement funds. Forty percent of respondents were from North
America, while 30 percent were from EMEA and 30 percent were from
APAC. Results are as of January 2016.
About State Street
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors,
including investment servicing, investment management and
investment research and trading. With $27 trillion in assets under
custody and administration and $2 trillion* in assets under
management as of March 31, 2016, State Street operates in more than
100 geographic markets worldwide, including the US, Canada, Europe,
the Middle East and Asia. For more information, visit State
Street’s website at www.statestreet.com.
* Assets under management include approximately $32.6 billion as
of March 31, 2016, for which State Street Global Markets, LLC, an
affiliate of SSGA, serves as the marketing agent.
State Street Corporation One Lincoln Street, Boston, MA
02111-2900.
© 2016 State Street Corporation - All Rights Reserved
Expiration Date - 05/31/2017
CORP-1959
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State Street CorporationJulie Kane, 1
617-664-3001jekane@statestreet.com@StateStreet
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