Thursday, 09 July 2020

EU financial institutions launch blockchain-based platform FundsDLT

The funding from the European financial institutions will used by FundsDLT to develop a new decentralised technology

Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange, and Natixis Investment Managers have launched FundsDLT, a blockchain-based technology platform for the investment fund industry.

The financial institutions have invested in the Series A funding round of FundsDLT. The funding is expected to enhance its platform and speed up commercial development of blockchain-based funds distribution technology.

The funding from the European financial institutions will used by FundsDLT to develop a new decentralised technology for distribution of funds based on distributed ledger technology (DLT) or blockchain-based technology.

FundsDLT was originally initiated and incubated by the Luxembourg Stock Exchange and its affiliate Fundsquare.

Luxembourg Stock Exchange CEO Robert Scharfe 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.”

The platform uses permissioned blockchain technology based on Ethereum which is claimed to offer privacy and high performance.

The blockchain platform enables reengineering fund distribution value chain from front to back, covering the entire fund lifecycle.

The blockchain platform can reduce cost for asset managers and asset servicers

Designed to help in eliminating redundant activities, FundsDLT will enable asset managers, distributors, asset servicers and the entire supply chain to reduce costs.

The platform also helps in achieving transparency on end investors and creating a foundation for digital funds distribution.

Natixis Investment Managers chief global operating officer Joseph Pinto said: “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. FundsDLT will help us achieve these objectives and will, in turn, allow us to provide an enhanced experience for investors by leveraging blockchain technology.”


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