Blockchain technology has the potential to wipe Luxembourg off the map of the fund distribution and administration market.
Extending far beyond bitcoin and cryptocurrencies, blockchain technology is bringing disintermediation to merely all industries. A survey from the World Economic Forum1 highlights that financial services will be transformed by this technology with expectations of at least 10% of the global GDP being stored on blockchain platforms by 2025. The fund sector that is seeking levers for processing optimization and that relies a lot on financial service intermediaries such as transfer agents, fund registries, and fund administrations will be particularly impacted. Considering that the fund sector represents more than 50% of its economy, the blockchain has the power of an earth quake that would shake to the ground the whole Luxembourg place.
So blockchain, a fairy tale or an inevitable change?
A blockchain relies on a digital and distributed ledger, which performs in a transparent environment without the need for a trusted authority to validate transactions. Rather, there are computer nodes that follow some consensuses and protocols to operate the ledger in an automated way. A blockchain is also able to execute so-called Smart Contracts application, self-executable computer programs that perform yet simple logic but can be assembled to produce sophisticated applications.
Deloitte Luxembourg is one of the blockchain pioneers in the country. We created the internal initiative in early 2015 and built our competences around technical and functional topics. Thanks to our blockchain knowledge and our subject matter expertise, we provide you a range of services: knowledge-building, broad network access, prototyping, and implementation.
How Blockchain technology can solve traceability issues in the art market?
1.1 Fund industry in Luxembourg
1.2 Objective of this White Paper
1.3 What is the blockchain?
2. Focus on distribution & settlement
2.1 The future fund subscription model
2.2 The transitional fund subscription model
2.3 Benefits of the blockchain for transaction processing
2.4 Opportunities and challenges of near real-time settlement
3. Focus on AML/KYC
3.1 The future model for AML/KYC
3.2 Benefits of blockchain for AML/KYC
Benjamin currently serves as Deloitte Luxembourg’s Strategy, Clients & Industries Leader and he is the firm’s Financial Services Industry Leader. In addition to his firm-wide roles, Benjamin leads the... More
Simon is a partner within the Luxembourg advisory and consulting practice and has more than 20 years’ experience in the investment management industry. He delivers client solutions across the entire i... More
Patrick joined Deloitte as partner in 2011 and was promoted to the Executive Committee in 2018. Patrick heads the Advisory & Consulting Group (ACG) and is the Firm Innovation Leader. He has extensive ... More