📰 Janus to Follow BlackRock and Fidelity Into Tokenisation

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Estimated read time: 4 minutes

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Welcome back to another issue of Finance Focus.

Janus Henderson has joined the growing trend of using blockchain technology in asset management through securities tokenisation. This innovation allows for a more efficient way to manage investments, eliminating some traditional costs and barriers. By collaborating with Anemoy, Janus Henderson is positioning itself for the future of finance, aiming to revolutionise how financial products reach investors.

Here’s the article. Scroll down to read key takeaways and commercial implications on the topic.

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📰 Janus to Follow BlackRock and Fidelity Into Tokenisation

TL;DR: Janus Henderson has entered the world of securities tokenisation by managing a tokenised Treasury fund. Tokenisation converts fund units into digital tokens on a blockchain, offering benefits like instant settlement and reduced operational costs. This move aligns with growing trends in the industry, with companies like BlackRock and Fidelity also exploring blockchain-based asset management solutions.

Key Takeaways:

1. Janus Henderson's Tokenisation Strategy: The asset manager will manage a tokenised Treasury fund, marking its entry into blockchain technology.

2. Blockchain’s Efficiency: Tokenisation is expected to reduce costs by eliminating intermediaries in financial transactions, enhancing liquidity.

3. Growing Industry Trend: Major players like BlackRock and Fidelity are also exploring blockchain-based asset management solutions, suggesting broader industry adoption.

4. Potential Disruption to ETFs: The tokenisation of funds may challenge the dominance of ETFs, providing an alternative structure for investments.

5. Broader Applications of Tokenisation: Beyond Treasury funds, Janus Henderson plans to expand tokenisation into other assets like intellectual property.

Commercial Implications:

1. Cost Efficiency: Tokenisation reduces the need for intermediaries, significantly cutting down costs in custody and administration, making investments more accessible.

2. Broader Access for Retail Investors: By simplifying access to private assets, tokenisation can attract a wider range of retail investors, expanding market participation.

3. Industry Transformation: The use of blockchain in asset management can disrupt traditional models, leading to new investment structures beyond ETFs and mutual funds.

4. Increased Liquidity: Tokenisation allows for almost instant settlement of transactions, improving liquidity for assets like Treasury bills, benefiting both investors and fund managers.

5. Potential for Mass Adoption: As big names like BlackRock and Janus Henderson invest in this space, tokenisation may move from niche to mainstream, altering the future of asset management.

Example Interview Question & Answer On Today’s Article

Question: How does securities tokenisation impact the traditional asset management industry, and what challenges or opportunities might arise from this shift?

Answer: Securities tokenisation streamlines investment processes by reducing the need for intermediaries, cutting operational costs, and improving liquidity through faster settlement times. This makes investments more accessible, particularly for retail investors, and could challenge existing structures like ETFs and mutual funds. However, tokenisation faces challenges such as regulatory hurdles and ensuring trust in blockchain systems. The long-term potential is significant, as big players like BlackRock and Janus Henderson see this as the future of asset management, potentially leading to widespread industry transformation.

In case you missed it:

🎥 My Goldman Sachs Cover Letter: Review & Breakdown

🧠 Click here for ‘Cover Letter Mastery’, ‘CV Mastery Blueprint’ and ‘Crafting Your Story’ courses

📰 BlackRock and Partners Group Team Up in Latest Effort to Target Wealthy

See you on Monday!

Afzal

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