Blockchain-based fund distribution platform launched
Fund distribution in Europe is moving a step ahead with the launch of FundsDLT. This blockchain technology based on Ethereum aims to enable asset managers, distributors and asset servicers among others to trim costs by removing redundant activities. It also seeks to bring the necessary transparency required for digital fund distribution.
Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange, and Natixis Investment Managers are backing up the intitative. These institutions have announced a Series A investment in FundsDLT to develop a new decentralised platform to ease fund distribution relying on distributed ledger technology (DLT).
“The launch of FundsDLT is an important step toward our shared goal of promoting the adoption of blockchain and digital assets across the financial industry,” said Robert Scharfe, CEO of the Luxembourg Stock Exchange.
Joseph Pinto, chief global operating officer of Natixis Investment Managers, commented: “The digital transformation poses some of the greatest challenges and opportunities for the investment management industry today, and blockchain can play an important role. We believe it is critical for the investment management industry to increase transparency and improve operations rapidly.”
Olivier Portenseigne, managing director of Fundsquare, added: “This partnership reflects the growing demand in the market for a platform that removes barriers for accessing investment funds. FundsDLT is a project that has the potential to change fund distribution and bring substantial benefits to the entire ecosystem.”