Schroders Buys A Stake In Crypto Firm Forteus
The asset management group Schroders has acquired a small investment in the New York-based cryptocurrency business Forteus.
In the deal, Schroders stated that Forteus, the fund management arm of Swiss-based Numeus Group, will be tasked with offering different investment solutions like yield generation, managing thematic portfolios and tokenisation, Institutional Asset Manager reported on July 25.
While developing its tokenization approach, the company stated that it intends to take use of the advantages that blockchain technology may provide the asset management sector.
The use of blockchain in asset management – Schroders
Peter Harrison, CEO of Schroders, claims that the potential of blockchain technology is what motivated the company to enter the market. In Harrison’s opinion:
“It not only has the potential to transform the efficiency of existing solutions but will drive the democratisation of private assets; it represents a new frontier of technological and financial innovation.”
The investment comes at a time when the cryptocurrency market is going through a protracted bear market that has caused the majority of assets to lose a considerable amount of value, and linked firms are finding it difficult to stay afloat. Notably, the correction has occurred as central banks have tightened monetary policy in an effort to stop the inflation from skyrocketing.
Observations from the crypto industry
Harrison recently stated in a remark that the market should put its attention on the technology underlying digital assets rather than worrying about the decline in cryptocurrency prices.
He emphasized that the business has managed to market itself despite issues with laws and excessive volatility and that the traditional finance sector has to learn the required lessons from the crypto space.
“Ironically, blockchain, the technology that underpins cryptocurrencies, could catalyse change in the traditional investment industry. It is probably why we may have already passed peak fund,” Harrison said.
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