UK Investment Titan abrdn plc Joins Hedera Governing Council to Explore Investment Fund Tokenization

Publicly traded global investment company, abrdn plc, is diving into Web3 with the tokenisation of money management.
Image source: Hedera

Quick take:

  • abrdn is examining future prospects for the tokenization of investment funds.
  • The company chose Hedera for its interest in strong governance, operational efficiency, and environmental sustainability.
  • abrdn will bring new insights on financial services governance to the Council.

Publicly traded investment and insurance company abrdn has become the first buyside finance and asset management company the Hedera Governing Council, the company announced today. 

The Hedera Governing Council is governed by globally diverse members industryincluding Avery Dennison, Boeing, Chainlink Labs, Deutsche Telekom, EDF (Électricité de France), eftpos, FIS (WorldPay), Google, IBM, the Indian Institute of Technology (IIT), LG Electronics, Nomura Holdings, ServiceNow, Shinhan Bank, Standard Bank Group, Ubisoft, University College London (UCL), and Zain Group.

Explaining its reasons for joining the Council, abrdn said in a press release that it believes that distributed ledger technology (DLT) has the potential to transform structural inefficiencies that exist in the fund management industry.

With £508 billion in assets under management and administration, the investment company is currently examining future prospects for the tokenisation of investment funds to cement its vision for Web3 and chose Hedera for its interest in strong governance, operational efficiency, and environmental sustainability on a Proof-of-Stake network.

Abrdn aims to list tokenised investment funds on a digital exchange and sees the potential to work with service providers to use Hedera for their other DLT-based services, allowing a fully on-chain experience for fund investing.

“We chose to join a number of leading global organizations on the Hedera Governing Council, because Hedera’s emphasis on strong governance, innovation, and sustainability aligns closely with our values. With rapid speed and asynchronous Byzantine Fault Tolerance (ABFT) security, Hedera offers a highly promising DLT solution for the fund management industry and we look forward to joining them on their journey,” said Duncan Moir, Senior Investment Manager at abrdn

With over 5,000 employees globally, abrdn will bring new insights on financial services governance to the Council. In contrast to other participating financial institution members, such as banks, asset management firms have fiduciary responsibilities which create a higher hurdle for governance. abrdn sees collaboration opportunities to work with other Council members that provide services for the fund management industry, including banks, law firms and technology companies to drive the transformation of structural inefficiencies through DLT.

“As abrdn leads the investment industry move into tokenized assets, the Hedera network provides them with the underlying technology to overcome barriers and offers an increasingly sophisticated experience to their clients, who pay for the layers of services that contribute to managing their assets,” said Bill Miller, co-chair of the Membership Committee for the Hedera Governing Council.

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