The latest “production blockchain ecosystem” for the asset management industry has resulted from a project where asset managers such as Aberdeen Standard, Kames Capital and Legg Mason partnered with a fintech firm, FNZ.
FNZ said its solution utilises blockchain technology to consolidate the “thousands of copies of transaction and holdings that plague the managed funds industry”, replacing them with a single, secure, verifiable source of “the truth” that can be universally accessible by all parties.
The global funds industry today relies on a plethora of peer-to-peer connections between investors, managers and platforms to effect basic fund activities such as trading, settlement, transfers, distributions and reconciliations, according to Phil Goffin, head of innovation at FNZ.
“None of these transactions are synchronised in real-time. Everyone has a different view of ‘the truth’, that often persists for days and months, leading to errors and exceptions, high back-office costs and risk for all participants,” he said.
The product, called FNZ ChainLink, is described as a blockchain-powered market infrastructure for asset management that creates a main legal register for fund and all associated transactions directly into blockchain.
FNZ said this meant it was accessible to platforms, managers, transfer agents, fund accountants, and custodians at the same time, enabling real-time delivery-vs-payment, settlement of trades and real-time fund transfers.
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