As companies, government agencies and individuals realize the potential of blockchain to create efficiencies, lower costs, and improve security, it could trigger a value-creation event as profound as the arrival of the Internet. Blockchain is a transaction tool and a new form of consensus technology, taking intermediaries out of the process, making transactions cheaper, quicker, and more secure. And this is its appeal.
Blockchain’s most high-profile role to date has been in decentralized finance, focused on the transfer of value. The purest form is cryptocurrency, but the technology also can be used in areas such as insurance, alternative finance (such as crowdfunding), cross-border remittances, and consumer finance.
Blockchain adoption is still in its early stages, but there are numerous utilization opportunities for companies that want to provide safer, cheaper, faster financial services.
Not only are more pure play blockchain options coming to market but also the materiality of blockchain exposure is increasing across many other companies. In our view, blockchain is becoming a more important part of their business model and central to their growth, and we believe this is an important moment in blockchain adoption as it moves from a niche technology to broader adoption. It offers greater speed, security, and efficiency for companies willing to explore its potential. For investors, we believe its full potential is only just starting to be revealed.
The Blockchain Innovation Team, Newton Investment Management.
All investments involve some level of risk, including loss of principal. Certain investments have specific or unique risks. Any views and opinions are those of the investment manager, unless otherwise noted and is not investment advice.
Recent market risks include pandemic risks related to COVID-19. The effects of COVID-19 have contributed to increased volatility in global markets and will likely affect certain countries, companies, industries and market sectors more dramatically than others.
This material has been provided for informational purposes only and should not be construed as tax advice, investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change.
This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
“Newton” and/or the “Newton Investment Management” brand refers to the following group of affiliated companies: Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA). NIM is incorporated in the United Kingdom (Registered in England no. 1371973) and is authorized and regulated by the Financial Conduct Authority in the conduct of investment business. Both Newton firms are registered with the Securities and Exchange Commission (SEC) in the United States of America as an investment adviser under the Investment Advisers Act of 1940. Newton is a subsidiary of The Bank of New York Mellon Corporation. Newton’s investment advisory businesses are described in their Form ADVs, Part 1 and 2, which can be obtained from the SEC.gov website or obtained upon request.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
Not FDIC-Insured | No Bank Guarantee | May Lose Value