FundsDLT Closes Series A Funding
FundsDLT, a fintech company developing a blockchain-based platform for the investment fund industry, has formally closed its Series A funding. This round of financing was supported by Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange, and Natixis Investment Managers.
The closed round follows an incubation period that began in 2017 focused on creation, development and testing of the platform. During this period, FundsDLT became the first to carry out an investment fund transaction on a blockchain-powered platform worldwide.
The investment secured will allow the company to advance with its planned objectives and milestones, including the scaling up of its operations. The Series A financing will also further support the adoption and development of its blockchain-based platform and APIs designed specifically to investment fund distribution and operations.
At the same time, FundsDLT announced the nomination of Martin Dobbins, a former State Street executive, as the chairman of its board of directors.
Martin Dobbins brings to the company experience supporting financial service, asset management and fintech organizations and their boards globally. He advises firms in acquisitions, financial structuring, capital raising, operating models and coaching senior management teams. Prior to this, he spent thirty-two years with State Street Corp, becoming CEO of State Street Bank Luxembourg and their European bank.
Commenting on the board appointment, Martin Dobbins said: “I’m thrilled and honored to act as independent director and chairman of FundsDLT and to support its executive leadership of innovators and shareholders. FundsDLT’s vision is to transform the distribution ecosystem on how investors and financial advisors have access to investment structures. Through its blockchain technology it brings increased transparency, enhanced data and wider distributions through a simplified single infrastructure.”
The company sees in the ongoing digital transformation of the investment fund industry, and in particular of investment fund distribution, opportunities for the entire ecosystem and ultimately for investors. It leverages these by offering services that meet the needs for transparency, automation and easier access, as well as reducing costs and complexity.
FundsDLT is a Luxembourg-based company owned by Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange and Natixis Investment Managers. FundsDLT is being developed to enable asset managers to sell funds through a new distribution channel, while significantly reducing administration costs and the time to process transactions for both asset managers, asset servicers, distributors and ultimately for the benefits of investors. FundsDLT will streamline a range of fund administration and order-routing tasks by using blockchain to automate several processes in a secure manner. The model is applicable to a wide range of funds and does not depend on the jurisdiction.
The not-for-profit initiative will make it easier to ensure funds are comparable and clear about costs.
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