Blockchain’s Potential Within The Family Office And Two Investment Applications

There’s been a great deal of hype surrounding blockchain since its capabilities were first promoted to underpin and support the cryptocurrency Bitcoin over a decade ago. Billions have been invested, and indications in both the PwC 2018 and Deloitte Global Blockchain 2019 surveys suggest that the technology is increasingly becoming an area of organizational attention and focus.

While the fintech industry remains the blockchain leader, organizations in other sectors including healthcare, technology, media and telecommunications are expanding their blockchain initiatives.

According to the Deloitte 2019 survey, which polled 1,386 senior executives across the globe, 53% of respondents identified blockchain technology as a critical priority for their organization this year. Despite its prioritization, adoption is in its infancy, with just 23% of the respondents reporting the initiation of blockchain deployments.

Still, the Deloitte survey shows that there seems to have been a shift in organizational and executive attitudes towards this technology. The question is no longer whether blockchain will work, but how companies can potentially make blockchain work for them.

This uncertainty is an issue that’s becoming increasingly relevant in the family office space. There are several areas of interest and potential benefit when it comes to blockchain implementation within family offices.

Investment due diligence

Family offices are increasingly seeking direct investment opportunities for both financial and emotional reasons. These types of investments require a greater focus on due diligence which is often costly and time-consuming, slowing deal flow. Blockchain has the potential to provide a robust solution.

While it will probably not ever replace due diligence in its entirety, it can be used to automate and even share the burden amongst the investor and…

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