Asset management company Schroders has taken a minority stake in the New York company cryptocurrency Forteus company in the development of research in the blockchain sector.
In the deal, Schroders said that Forteus, the fund management arm of Switzerland-based Numeus Group, will be responsible for offering different investment solutions like yield generation, thematic portfolio management and tokenization, Institutional Asset Manager reported July 25.
The company has announced its intention to exploit the benefits that blockchain can bring to the asset management industry while developing its tokenization strategy.
The Role of Blockchain in Asset Management
According to Schroders CEO Peter Harrison, the company’s venture into the blockchain space is driven by the technology’s potential. According to Harrison:
“It not only has the potential to transform the effectiveness of existing solutions, but will lead to the democratization of private assets; it represents a new frontier of technological and financial innovation.
The investment comes at a time when the crypto sector is experiencing sustained growth bear market which has seen most assets lose their value significantly as related businesses struggle to stay afloat. Notably, the correction came amid tighter monetary policy by central banks trying to rein in soaring inflation.
Lessons from the crypto industry
In a recent comment, Harrison indicated that falling crypto prices shouldn’t be a concern, but that the market needs to focus on the technology that powers digital assets.
He noted that the tradition financial sectorr must learn the necessary lessons from the crypto space, pointing out that the industry has successfully commercialized itself despite regulatory challenges and high volatility.
“Ironically, blockchain, the technology that underpins cryptocurrencies, could catalyze change in the traditional investment industry. That’s probably why we may have already passed peak funds,” Harrison said.
Indeed, the market crash has led several crypto companies like lending platform Celsius to resort to bankruptcy filing after being unable to maintain its activity, citing liquidity problems.