BNP Paribas AM Completes Blockchain Test
BNP Paribas Asset Management successfully completed a full end-to-end fund transaction test late last year, using blockchain technology.
The test has been conducted leveraging on BNP Paribas Securities Services’ blockchain programme, Fund Link, and FundsDLT, a blockchain based decentralized platform for fund transaction processing, which has been developed through collaboration between Fundsquare (a subsidiary of the Luxembourg Stock Exchange), InTech (a subsidiary of POST Group) and KPMG Luxembourg.
The test demonstrated that Fund Link is able to connect with other blockchains, opening the door to a new model of interoperability and marks a key milestone for fund distribution. The transaction included each part of the fund trade process, from delivery of the order to the processing of the trade.
BNP Paribas Asset Management is among the first leading global asset managers to take part in this prototype testing. This new development is fully in line with its growth plan, which puts innovation and technology at the heart of its strategy, making BNP Paribas Asset Management a leading provider of digital investment services to support the distribution of its funds.
Fabrice Silberzan, Chief Operating Officer, BNP Paribas Asset Managementcommented:
“We have a unique opportunity to continue shaping the future of the asset management industry using digital technology, and transform the fund distribution process. While investors will benefit from reduced transaction time, we will also profit from a sleeker, more streamlined system underpinned by technology and relevant for all fund types and geographies.”
The test also makes BNP Paribas Securities Services one of the first asset servicing providers to process a full end-to-end fund transaction using blockchain technology which is integrated within its core platforms.
Arnaud Claudon, Head of Asset Managers, BNP Paribas Securities Services, said:
“This is a key milestone in our Fund Link project as it showcases the interoperability of our platform, something which will be key to us moving forward. This transaction is a continuation of the work we started earlier last year and is fully aligned with our goal of co-creating with external partners and the wider market.”
Said Fihri of KPMG Luxembourg explained:
“The pool of asset managers using FundsDLT to perform test transactions is expanding. The participation of leading asset managers like BNP Paribas Asset Management is a clear indication of the platform’s growing maturity, and firms from further afield – the US, UK and Germany – have also entered into discussions with the FundsDLT team. There’s a real sense of excitement about the project, and a feeling that FundsDLT is playing a role in shaping the fund distribution landscape.”
Olivier Portenseigne of Fundsquare concluded:
“Our goal is to collaborate with major players from the fund industry so as to capitalise on the benefits that blockchain technology brings. We are delighted to see BNP Paribas Asset Management come on board as a frontrunner in pioneering and testing our platform. FundsDLT is an international initiative that streamlines a number of activities within the fund distribution value chain, and as a consequence, will reduce costs for the benefits of investors across fund and investor domiciles. This will certainly bring a competitive advantage to early joiners.”
The regulated blockchain infrastructure platform announced the sixth broker-dealer to join.
The proof of concept uses smart contracts from Digital Asset and DLT from VMware.
The network is driving adoption of standardized post-trade swap data models and workflows.
The market maker will contribute real-time crypto market data before expanding into equities.
Pyth is built on a blockchain to handle receipt and distribution of fast-moving data.