Executive summary

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.

