The computer giant, International Business Machines Corp. (NYSE:IBM), has joined the long list of leading global companies such as Goldman Sachs and JP Morgan Chase that are investing in a fintech start-up known as Digital Asset. According to Jerry Cuomo who is a fellow at IBM and a representative of the company at Digital Asset, IBM believes that making an investment in Digital Asset is the right thing to do given the huge potential that Digital Asset has of transforming how business is conducted across different industries.
Digital Asset has been seeking money to expand its operations. And in so doing, the small start-up company has attracted a long list of investors in the form of reputable global businesses. One of the most important investors in the company is the Australian Securities Exchange (ASX).
Currently, the institution owns a 5% stake in Digital Asset, following the conclusion of its AU$14.9 million investment into the startup company. This means that the ASX has the right to buy more shares in the company as well as have a representative sitting on the board of Digital Asset.
According to Elmer Funke Kupper, who is the CEO and managing director of ASX, investing in Digital Asset underscores the belief that the technology that has been developed by Digital Asset is set to revolutionize the manner in which business is conducted and that ASX is set to be a leader in the adoption of such technology.
Digital Asset has developed a form of technology known as Distributed Ledger Technology. This technology makes it possible for businesses and individuals to conduct transactions in much more secure and efficient manner as compared to the traditional means that are currently in existence.
However, the potential use of the technology is limited by one factor: lack of standards that can be applied across different industries. Given that this is a completely new type of technology, it is necessary for companies to develop standards that can make it possible for the technology to be used seamlessly. Jim Zemlin, the executive director of The Linux Foundation, believes that the development of industry-wide standards will unlock the huge potential of Distributed Ledgers technology that forms the backbone of Digital Assets.
The good news is that early last year, the likes of Cisco, IBM, Intel, ANZ Bank, among others, partnered in a bid to popularize and standardize the use of the technology. This, according to David Whiteing of the Commonwealth Bank of Australia, is a positive step.