October 27, 2023
By Sharan Kaur Phillora
Schroders CEO Peter Harrison is all in on blockchain technology, predicting a significant shakeup in the financial sector over the next five to ten years. In a press meeting on October 24, he compared the rise of blockchain to the early days of the internet, indicating that we are on the verge of a significant change.
Here’s what we know:
Harrison is excited about how blockchain will allow us to handle our assets. He believes digital wallets will play a central role in our financial future. Under his lead, the London-based asset management firm Schroders, with assets worth £724.3 billion ($885.1 billion) as of September 30, leaped into the crypto world last year by investing in Forteus, a crypto asset manager.
This year, Schroders deepened its crypto engagement by teaming up with Singapore’s top financial regulator. They are working together to develop a digital asset ecosystem and are exploring the potential of tokenized assets. This includes the creation of “tokenized investment vehicles” alongside the global funds network Calastone.
Harrison’s belief in crypto comes from an understanding that a generational wealth shift is changing how investors interact with the industry. He joked about the early confusion around digital wallets, comparing it to having an AOL account in 1993. Yet, with blockchain, he sees a future where all assets, insurance, and banking can be consolidated in one place, making things significantly easier for the new generation of wealth owners.
Moreover, Harrison highlighted the potential magnification of blockchain’s capabilities when combined with artificial intelligence (AI). He believes this combination will lead to highly personalized services, anticipating many of these changes to materialize within a decade.
Lastly, Harrison mentioned the regulatory hurdles in the U.S., which led Schroders to set up their blockchain team in Singapore, where the regulatory environment is more favorable for exploring blockchain innovations.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.