FundsDLT and UBS Asset Management (UBS AM) have successfully concluded a proof-of-concept pilot that aimed to explore a front-to-back blockchain-based investment fund distribution model. FundsDLT, a decentralised platform for fund transaction processing, and UBS AM were supported by experts from the i.AM Lab, a research and product development company in Zurich.

The pilot covered and simulated the entire distribution process, starting with investor onboarding, transaction initiation up to settlement and transfer agency. On FundDLT’s blockchain-based platform, all parties involved had real-time transparency on the straight-through transaction including real-time reporting and status updates.

As a result, the pilot confirmed the viability of a blockchain-based distribution model and, in general, the advantages of digital distribution of investment funds.

Speaking after the tests Olivier Portenseigne, CEO of FundsDLT, said: “Investors want an easier way to invest and asset managers need long-term solutions that enable them to transform their businesses and grow their investor base. This requires new models that focus on seamless digital delivery, automation and process and operational efficiency. FundsDLT offers a route to the future and we are pleased that UBS is working with us.”

Patric Huber, Head of Product Strategy at UBS AM said, “We see technology as a differentiator and innovation as foundational. We are constantly seeking to leverage emerging technologies to provide the best services and products to our clients. The successful proof-of-concept pilot in collaboration with FundsDLT has demonstrated promising potential of distributed ledger technology in making the fund value chain more efficient, transparent and convenient for our clients across front, middle, and back offices.”

Claudio Schneider from the i.AM Innovation Lab comments: “The proof-of-concept has shown that a distributed ledger based fund ecosystem may not only reduce costs and risks for all parties involved, but also simplifies the distribution of fund solutions with a significant improvement of the customer experience. As per our conviction, DLT will lead to more cost effective products for the investor with a greatly simplified investment journey and will have a lasting impact on the fund industry.”

Source: FundsDLT