Abrdn, an investment company based in the UK, is venturing into the digital asset sector. The company plans to do this through a partnership with Hedera, an enterprise network.
UK asset manager partners with Hedera
Abrdn is an asset management company that oversees $579 billion in assets. The company will join other firms such as Google, FIS, Standard Bank, and Nomura on the Hedera Governing Council.
The senior investment manager at Abrdn, Duncan Moir, said the company was a long-term investor in the initiative. Hedera is among the largest blockchain projects in the web 3.0& crypto sector. Several industry players from the Hedera Governing Council are building projects on the network.
IBM has integrated the Hedera consensus mechanism within its Hyperledger Fabric product, while ServiceNow, a digital workflow company, has integrated Hedera into the Now platform.
While the chain is receiving interest from major industry players, the overall adoption of the chain remains low. The total value locked (TVL) of the Hedera blockchain stands at around $100 million, according to DeFiLlama. This is notably low compared to Ethereum, which has a TVL of $39 billion.
Moir said that choosing the Hedera network was not difficult, adding that the chain confirmed the company’s values in supporting innovation and sustainability. Research from University College London has also said that Hedera is a sustainable proof-of-stake network.
Abrdn ventures into the crypto sector
Abrdn, previously known as Standard Life Aberdeen, is a leading company in the UK. The company was created in 1825 and provides various services such as investment services on investment technologies, tools, and services for financial advisers.
The investment industry is looking to evolve, and blockchain technology could be the key to achieving this. According to Moir, the companies currently venturing into blockchain focused on specific things and were yet to explore the sector comprehensively.
Abrdn said the company could see the potential of using the Hedera network to tokenize investment funds. Such funds can then be listed on digital exchanges. Tokenization will support the secondary market for funds with few redemptions while creating an opportunity to discover prices.
Moir also said that the company was a step ahead towards having a fully on-chain process. Abrdn is not alone in venturing into investment fund tokenization. Hamilton Labe, an investment management firm with $832.5 billion in assets under management, partnered with Securitize to tokenize three funds. KKR, a private equity giant, is tapping the Avalanche blockchain to tokenize funds.
Besides tokenizing funds, Abrdn is exploring how the company can revamp the investment sector through blockchain technology. The company started venturing into digital assets a few years ago after exploring crypto as an asset class in hedge funds.
Earlier this year, Abrdn secured a significant stake in Archax, a digital assets exchange. The company created an opportunity for investors to access opportunities in digital asset securities and connect the existing offerings using tokenization. Moir anticipates that Abrdn will launch more plans for the digital asset space. It will announce its crypto roadmap by the end of the year.
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