The UK-based fintech company, Calastone, has revealed plans to transfer its entire investment funds transaction network to blockchain.
The firm intends to change its entire system to power off blockchain technology in May 2019, Reuters reported.
The company offers back and middle-office services to over 1,700 businesses, including JP Morgan Asset Management, Schroders, and Invesco.
Calastone aids the sale of firm’s funds through banks and local financial advisors across the globe.
By adopting blockchain into its operations, the technology will complete more than nine million messages, accounting for £170bn (US$217bn).
As a business looks to buy into funds, three digital messages are sent between firms – a message to place the order, one to confirm receipt, and the final message to mark the price.
The current technology used to send the messages is more efficient than manual methods, such as faxes, but can still be time-consuming.
The widespread use of blockchain in the industry could save the sector £3.4bn (US$4.3bn) per annum, according to research from Deloitte.
“The more you can automate, the more you de-risk, you more you streamline, the more you speed up,” commented Andrew Tomlinson, Chief Marketing Officer at Calastone, Reuters noted.