Even though majority of asset owners and managers anticipate widespread adoption of blockchain in the investment industry in the next five years, few have the readiness to support the technology, a new research from State Street has revealed.
Findings from the study, carried out in association with Oxford Economics, unveiled that while 57% of asset owners and managers expect wide adoption of the technology in the next five years, only 7% have initiatives underway to support the technology.
The study revealed 74% of asset owners having an optimistic outlook on blockchain adoption, compared to 42% of asset managers.
However, 48% of asset owners said that they lack enough knowledge about the technology, with the same cited by 78% of asset managers.
According to the report, 80% of the respondents said blockchain will have the biggest impact on IT departments, while 81% of asset managers said that blockchain will equally disrupt their own jobs on investments teams.
Over half of asset owners and asset managers (55%) believed that the technology is most likely to be used privately by companies, compared to 13% who believed in public adoption of blockchain.
Majority of respondents labelled security concern as the biggest impediment in widespread adoption of blockchain, saying that the industry needs to tackle this concern to increase the technology’s adoption.
State Street global chief information officer Antoine Shagoury said: "A majority of institutional investors are well aware that blockchain, an ’emerging technology,’ could become an everyday application in the near future. 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."