According to a new Thomson Reuters survey published this week, one in five financial firms, ranging from hedge funds to the biggest banks, are considering trading digital currency in the next three to 12 months. Of those that showed interest, about 70 percent said they were planning to trade in the next three to six months.
Hedge funds are not currently regulated by the U.S. Securities and Exchange Commission (SEC), a financial industry oversight entity, as mutual funds are. However, it appears that regulation for hedge funds may be coming soon. As a result of being relatively unregulated, hedge funds can invest in a wider range of asset avenues. Relatively, the quantum of risk factors would also be considerably mounting under such circumstances.
To amenably address these obstacles, the concept of SPINDLE has come up as the brainchild of the Tokyo and London-based investment and blockchain engineering company BLACKSTAR GROUP.
With it grew the ambitious vision to build a platform that brings together individuals and fund managers. SPINDLE allows for fair and genuine work relationships to form, and lets individuals pursue confident investment in fund managers who are able to develop and execute their operations to the fullest of their abilities.
BLACKSTAR GROUP’s CEO Masamitsu Hirai references, “I have always seen a particular strength of blockchain technology in its ability to help overcome aspects of human incompetence and weakness that hinder the development of the financial industry.”
“Theoretically, blockchain doesn’t require a professional auditor. The issue of fraudulent actions is ultimately rooted in human nature; every action carried out within the framework of a command system is controlled by humans. What blockchain does is reduce human participation and, thereby, fraud opportunities. It technically makes the process of investing simpler and more effective,” he added.
SPINDLE utilizes blockchain and smart contract technology in order to minimize fraud possibilities. Fund managers partaking on SPINDLE’s service platform ZETA will be assessed based on the tangibility of their work, rather than on indicators of greatness. The aim is to create free market conditions not only for consumers, but likewise for fund managers, and allow the formation of a competitive market.
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