The world’s largest provider of mutual funds is reported by many best cryptocurrency news sites for using a blockchain that makes many other banks look foolish. The news that Vanguard uses blockchain which is worth $1.3 trillion worth of index funds has also been viral on Forbes.
Vanguard popularized mutual funds and exchange-traded funds (ETFs) for the common investor. With this, it has become popular. Now, it is using distributed ledger technology (DLT) to manage financial data for one quarter of its assets, as the latest cryptocurrency news show. This service is more than just an one-off trial and is apparently operating live for millions of customer accounts.
Vanguard uses blockchain since February this year. Its clients have unknowingly using the blockchain service throughout most of the year, and the company reported that its implementation has been an overall success. The implementation of blockchain includes the flagship $800 billion Total Stock Market Index Fund and represents one of the largest uses for distributed ledgers to date.
As the altcoin news show, this distributed ledger program (which is the main reason that Vanguard uses blockchain) was designed by a New York based startup named Symbiont. The ledger software is actually the same blockchain technology that is introduced by Bitcoin, giving a vote of confidence when it comes to the security of operating in the crypto world.
Right now, Vanguard believes that the use of blockchain has overhauled its system for the better. As the head of the fintech strategies team at Vanguard Warren Pennington noted, the company’s previous system “required the manual syncing of data, with employees being forced to make updates all day long.”
Now that Vanguard uses blockchain, the project has been ramped up. On par with this, blockchain education is becoming more sought after at a collegiate level – but the industry is still suffering from lack of developers that have experience with the technology – as featured in the coming altcoin news.
With this, Vanguard joins a host of other financial institutions which include Fidelity and JP Morgan Chase, all of which are turning to blockchain as a source of innovaiton. Vanguard’s glowing review for blockchain also shows the optimistic approach that the company has towards the technology.
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