Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange, and Natixis Investment Managers have teamed up to launch FundsDLT, a blockchain-based technology platform for the investment fund industry.
The financial institutions announced a Series A investment in FundsDLT to develop a novel decentralised technology platform to facilitate the distribution of funds based on distributed ledger technology (DLT).
According to Clearstream, the Series A funding will strengthen the FundsDLT platform and “accelerate its commercial development”.
FundsDLT is built using permissioned blockchain technology based on Ethereum that ensures privacy and high performance.
The new platform will enable the reengineering of the fund distribution value chain, from front to back, covering the entire fund lifecycle.
Additionally, the platform allows asset managers, distributors, asset servicers, and the entire supply chain to reduce costs by removing redundant activities.
Philippe Seyll, CEO of Clearstream Banking S.A., explained: “FundsDLT is an international initiative that streamlines a number of activities along the fund distribution value chain and has the potential to reduce costs for the benefit of investors across fund and investor domiciles. This investment is a critical step in our digital strategy and will complement and strengthen our current Vestima offering.”
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. FundsDLT will help us achieve these objectives and will, in turn, allow us to provide an enhanced experience for investors by leveraging blockchain technology,” Pinto added.
