Blockchain-enabled asset management: Opportunities, risks and global implications
1 Independent Researcher, Bonny Island, Nigeria.
2 Independent Researcher, Seattle, WA, USA.
3 Independent Researcher, NJ, USA.
4 College of Business, Texas A&M University-Commerce, USA.
Review
Comprehensive Research and Reviews in Multidisciplinary Studies, 2024, 02(02), 014–022.
Article DOI: 10.57219/crrms.2024.2.2.0042
Publication history:
Received on 15 October 2024; revised on 20 November 2024; accepted on 23 November 2024
Abstract:
Blockchain technology has emerged as a transformative force in asset management, offering unprecedented opportunities to enhance efficiency, transparency, and global accessibility. By enabling decentralized systems, blockchain eliminates intermediaries, reduces transaction costs, and accelerates settlement times. Its ability to tokenize assets allows for fractional ownership, broadening access to investment opportunities for diverse demographics. Smart contracts and distributed ledger technology further streamline operations, ensuring security and accuracy in ownership tracking and compliance. However, the adoption of blockchain is not without challenges. Regulatory ambiguity, cybersecurity vulnerabilities, and technological barriers hinder its widespread integration. Additionally, blockchain's global implications extend to disrupting traditional financial systems, raising cross-border jurisdictional issues, and introducing ethical concerns such as data privacy, inequality, and environmental sustainability. This paper explores blockchain's key features, applications, and risks in asset management while analyzing its broader global impacts. Recommendations are provided for policymakers, asset managers, and innovators to address these challenges and harness blockchain’s potential effectively. The findings highlight that while blockchain poses risks, its strategic adoption can redefine asset management practices, fostering a more inclusive and efficient financial ecosystem.
Keywords:
Blockchain Technology; Asset Management; Tokenization; Smart Contracts; Decentralized Finance (DeFi); Regulatory Challenges
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0