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By CCN: Vanguard, the world's largest mutual fund provider, uses blockchain to fuel its business.
The investor giant, who has popularized mutual funds and exchange-traded funds (ETFs) for the common investor, uses distributed ledger technology to manage index funds with a value of 1,300 billions of dollars, reports Forbes.
The Vanguard blockchain manages more than $ 1 trillion in badets
Since February, Vanguard has been using blockchain to manage the financial data of a quarter of its badets, worth $ 1.3 trillion. More than a single test, the service works for several million customer accounts.
That's right, Vanguard Index Funds customers have unknowingly been using a blockchain-based service for most of the year, and the company reports that its implementation has been a success.
The implementation of blockchain by Vanguard, which includes the flagship $ 800 billion Total Stock Market Index fund, is one of the most important uses of the major books distributed to date.
The distributed book program was designed by New York start-up Symbiont. The general ledger software is based on the same blockchain technology introduced by Bitcoin, giving a vote of confidence for operating security in the cryptocurrency universe.
Vanguard says the use of the blockchain has revamped its system for the better. Warren Pennington, head of Vanguard's fintech strategy team, said the company's previous system required manual data synchronization, with employees having to make "all-day" updates. With Blockchain, the process is simplified and automatic.
The project, which began in mid-2017, originally employed a team of less than ten people. Pennington explained that the lack of knowledge of the software was a major barrier to entry,
"One of the challenges in a highly regulated industry is simply lack of familiarity. This takes time: let people become familiar. "
Although blockchain education is increasingly sought after at the college level, the sector suffers from a lack of experienced developers in this technology. Crypto has put the major led books in the spotlight and the industry could get a big boost thanks to the growing adoption of Bitcoin and Facebook's future GlobalCoin.
The German Central Bank seems stupid
Vanguard joins many other financial institutions, including Fidelity and JP Morgan Chase, in making blockchain a source of innovation. However, not everyone is optimistic about the development of blockchain to improve financial institutions.
The Ridiculous Blockchain of the Bundesbank: Not a "Revolutionary" Technology https://t.co/PpsXqzjbqM
– CCN.com (@CCNMarkets) May 29, 2019
Earlier this week, Bundesbank President Jens Weidmann ridiculed blockchain for its slowness and high cost during an unsuccessful trial. The head of the German central bank said the blockchain was not a "revolutionary" technology and said other banks had similar results.
Vanguard's glowing review of the chain chain gives Weidmann's badessment an additional aspect of FUD from the European economic elite.
Disclaimer: The opinions expressed in the article only commit the author and in no way represent those of NCC.
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