Kleinwort Hambros issues blockchain exchange traded note

For investors looking for companies benefiting from the use of distributed ledger technology (DLT), Kleinwort Hambros has the solution. They launched a new blockchain note that will give investors that very access they are seeking.

The project was first hatched by the private bank with the idea of creating exchange-traded notes (ETN). These would be made up of blockchain related companies according to the report. In the initial basket of stocks that are being included are 20 names of industries that can be found across a wide scope of business types and country locations. This will include companies from the technology world, shipping, oil and gas industries, as well as banking and industrial groups.

For investors, it will cost them a minimum of £1,000 to jump on board. The stocks will be listed in Luxembourg and are companies that are expected to see profitable ventures as a result of the adoption of DLT.

By providing software and services that are related to blockchain technology, these companies will be able to reap the profits of providing services and platforms that are destined to help provide greater security on the Internet. By collaborating with other companies seeking to achieve the same goals, they can create a greater level of services for consumers, which will benefit all 20 companies involved.

Over the last year, a number of companies, financial institutions, and governmental authorities have come together to create groups that either regulate their industry or create higher levels of security for companies needing to safeguard transactions and customer account information.

Last August, for example, the Winklevoss brothers, the founders of the Gemini Exchange, attempted to create a group that would regulate cryptocurrencies. The brothers had failed at creating a cryptocurrency exchange and trading fund, but their new venture was intended to regulate and safeguard the transactions across a wide area of the world.

Just days ago, the European Union backed a new blockchain Association that would combine 100 different organizations. The purpose of this association was to help users and developers using DLT to be able to communicate with regulators and governors of the various exchanges and security systems.

This is clearly the wave of the future. Financial institutions and tech companies are seeing the need to combine their resources, creating associations and exchanges that will not only increase security to levels that they desire but will also give them a powerful entity to back for investors.