Today Allfunds Blockchain said it is open for business in Italy using its FAST solution, which enables data sharing between fund industry participants to transfer funds. It follows a successful trial as part of its Business Lab that involved 18 Italian participants, including asset managers, distributors and intermediaries.
Through the Lab, Allfunds found the top pain point is the time it takes to transfer units of funds between intermediaries. Using blockchain to share data between participants can not only speed up the process but also reduce costs. A common data source also improves transparency and should result in fewer transaction errors.
The Lab participants, who aren’t necessarily in production on the platform, were Allfunds, Azimut, Banca Generali, Banca Mediolanum, Bnl – Bnp Paribas, BNP Paribas Asset Management, BNP Paribas Securities Services, BPER Banca, CheBanca! S.p.A., Fidelity International, Fideuram – ISPB, Franklin Templeton, M&G Investments, Morgan Stanley Investment Management, Pictet Asset Management, and Schroders.
Allfunds Blockchain has two distinct offerings, the FAST data sharing solution and a fund tokenization offering. It’s an independent subsidiary of fund distribution firm Allfunds which administers almost $1.5 trillion in funds.
Three weeks ago, Allfunds announced that AllianceBernstein, an affiliate of Equitable Life, had partnered with Allfunds Blockchain to use its solution in Europe.
Meanwhile, last week the UK’s Investment Association called on the British government and regulators to create a framework to enable the tokenization of funds. Asset managers were one of the first sectors to adopt blockchain, with the French IZNES platform for funds launching in 2017.