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Morgan Stanley is teaming up with KKR-backed Corastone to bring blockchain-based automation to alternative asset trading, with industry heavyweights like Apollo Global Management and Franklin Templeton also getting on board.
What does this mean?
Morgan Stanley’s adoption of Corastone’s blockchain platform represents a major shift in how alternative funds — like private equity and hedge funds — are traded. Traditionally, these transactions have involved piles of paperwork and slow settlement times, often taking days to complete. By bringing deals onto blockchain rails, Corastone aims to automate and speed up processing while cutting back on manual errors. With KKR, Apollo, and Franklin Templeton joining in, it’s clear the industry is pushing for digitized fund flows and smoother operations. Investors are taking note: shares of Morgan Stanley, KKR, and Apollo all enjoyed a lift, rising between 0.8% and 2.3% in recent trading.
Streamlining trades for alternative assets is shining a spotlight on this part of the market. Faster, automated processing could ramp up liquidity in a $13 trillion sector, while lowering the risks tied to slow, paper-based systems. As blockchain adoption rises, smoother transactions may draw more institutions — and their cash — into alternatives, helping reshape where investors look for returns.
The bigger picture: Digitization is remaking global finance.
Wall Street’s pivot to blockchain shows tech is rewriting finance’s core playbook. Beyond shrinking settlement times and reducing back-office complexity, this shift could cut costs for big banks and asset managers while setting new standards for transparency and oversight. As more global firms digitize, this trend could have a ripple effect on everything from regulation to how funds are accessed around the world.
