BNY Mellon Study Predicts Wide-scale Adoption of DLT and Tokenization by Asset Managers

Blockchain, distributed ledger technology (DLT) and asset tokenisation are expected to be increasingly leveraged by asset managers, according to a new survey from BNY Mellon. The study showed that blockchain and DLT to synchronise data and digital processes was cited as one of the top priorities for asset managers, as 84% of respondents stated they are planning to develop these solutions within the next three years to drive operational transformation. The anticipated uptake of blockchain technology is set to go hand-in-hand with plans to leverage asset tokenisation, with nearly three-quarters of respondents looking to develop digital assets. According to a story in The TRADE news, the continued evolution of these technologies could increase product development opportunities and broaden investment options for new pools of investors, BNY Mellon said in the survey. Additionally, it could offer liquidity to investments that are typically illiquid, such as alternatives. Cloud computing dominates today’s digital imperatives. Almost all respondents (96%) said they are currently leveraging cloud computing to drive digital and operational transformation. BNY Mellon stated that cloud-based infrastructure will provide the building blocks for the adoption of advanced digital technologies, as it allows managers to bring new digital services, products and experiences to clients. As a result, it will enable them to work better internally, as well as with service providers and other third-parties.