Deutsche Bank has completed a digital fund investment servicing platform prototype with Memento Blockchain.
The two project partners indicate that the proof of concept (PoC), named Project DAMA, will provide a more secure, efficient and flexible mechanism for digital fund management and investment services.
This will offer a “one-stop” digital fund investment servicing solution, targeted at asset managers and their service intermediaries — transfer agents, custodians and fund administrators — that will streamline the process of issuing and servicing digital funds.
The project, offering Digital Assets Management Access (DAMA), will deliver an open architecture platform offering buyers access to digital funds from a range of fund promoters and will support a range of different custody models.
Memento Blockchain has provided technical expertise and implementation experience for the programme, with Deutsche Bank mapping out the functional requirements. The two parties have worked together on the platform design.
In building the PoC, the project partners created a unique and non-transferable token to represent the digital identity and profile of a wallet owner.
They also tested a decentralised payment and exchange gateway enabling investors to convert fiat money to digital assets or currency. Smart contracts, adapted to the specific fund type, will support fund valuation and accounting.
This project received a Financial Sector Technology Innovation (FSTI) proof of concept grant from the Monetary Authority of Singapore on 5 August 2022.
Commenting on the initiative, Deutsche Bank’s global head of sales and head of Asia-Pacific Securities Services Anand Rengarajan, says: “The extension of traditional fund services with digital capabilities can significantly lower cost-related barriers to entry for asset managers looking to launch a digital fund – and for qualified investors seeking exposure to such funds. We look forward to the future possibilities.”
“Digital asset management and digital funds are the natural next steps after asset
tokenisation. Through Project DAMA, we have been able to demonstrate the viability of
transitioning into the future of digital finance through several innovative asset
management and investment servicing features including digital identity, mass
customisation and decentralised applications.”
Memento Blockchain’s CEO Nicola Lanteri adds: “The partnership on this PoC was a perfect mix: we provided the technical and implementation expertise, Deutsche Bank shared the functional requirements, and we both collaborated together on the platform’s design.”
“The result is an innovative and practical infrastructure that combines core components of transfer agency, fund administration, custody and payments for the digital fund environment, while also allowing for an open architecture that enables self-custody of assets.”
