Impacts Of The Blockchain On Fund Distribution

Executive summary

Extending far beyond bitcoin and cryptocurrencies, Blockchain technology is bringing disintermediation to merely all industries. A survey from the World Economic Forum highlights that financial services will be transformed by this technology with expectations of at least 10% of the global GDP being stored on Blockchain platforms by 2025. The fund sector that is seeking levers for processing optimization and which relies a lot on financial service intermediaries such as transfer agents, fund registries, and fund administrations will be particularly impacted. Considering that the fund sector represents more than 50% of its economy, the Blockchain has the power of an earth quake that would shake to the ground the whole Luxembourg place.

So Blockchain, a fairy tale or an inevitable change?

A Blockchain relies on a digital and distributed ledger which performs in a transparent environment without the need for a trusted authority to validate transactions. Rather, there are computer nodes that follow some consensuses and protocols to operate the ledger in an automated way. A Blockchain is also able to execute so-called Smart Contracts application, self-executable computer programs that perform yet simple logic but can be assembled to produce sophisticated applications.

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Content

1. Introduction 1.1 Fund industry in Luxembourg 1.2 Objective of this White Paper 1.3 What is the Blockchain?

2. ...