Four major financial companies – Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange, and Natixis Investment Managers – have made investments in a blockchain-based platform for the investment fund industry, gearing up its launch.
Dubbed FundsDLT, the platform will enable the reengineering of the fund distribution value chain, from front to back, covering the entire fund lifecycle. It will also reduce costs for asset managers, distributors, and asset servicers by removing redundant activities, Tuesday’s announcement detailed.
The platform was initiated and incubated by the Luxembourg Stock Exchange while other players jumped to back it recently. The platform is also affiliated to Fundsquare, a Luxembourg-based financial services company.
The companies made undisclosed investments in the platform in its Series A funding round.
Commenting on the platform, Robert Scharfe, CEO of the Luxembourg Stock Exchange, said: “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. The Luxembourg Stock Exchange has played a catalyzing role in this development, and it is exciting to see the expanding ecosystem around FundsDLT.”
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Bringing transparency and security to funds
Based on Ethereum, the platform is built using a permissioned blockchain technology, ensuring privacy and high performance.
The proceeds from the funding will be utilized to strengthen the decentralized platform and accelerate its commercial development.
“We believe it is critical for the investment management industry to increase transparency and improve operations rapidly,” Joseph Pinto, chief global operating officer of Natixis Investment Managers, added. “FundsDLT will help us achieve these objectives and will, in turn, allow us to provide an enhanced experience for investors by leveraging blockchain technology.”
“As part of our digitalization journey, we consider FundsDLT as a further powerful lever to increase efficiency but also to create new distribution channels, enabling considerable benefits for both clients and asset managers,” Michel Degen, Head of Credit Suisse Asset Management Switzerland and EMEA.