Last week an Allfunds fund tokenization project was accepted into the first Spanish regulatory Sandbox alongside at least seven other blockchain projects.
The new Sandbox is a three-way effort between the Banco de España, stock market regulator CNMV, and the Directorate General of Insurance. The Allfunds project was one of 18 admitted to the Sandbox out of 67 applicants.
Blockchain is being used to tokenize fund shares and hence for the issuance, management and distribution of investment funds.
Four companies are involved in the fund project, each with distinct roles. Renta 4 Banco, the specialist wealth management bank, is responsible for placing the tokens with investors with the funds managed by Renta 4 Gestora. Onyze will provide its digital asset custody solution.
Allfunds is providing its technology and the Allfunds Blockchain network. In April, Allfunds listed on Euronext and has a market capitalization of €8.4 billion ($10.25bn). The technology partner is IoBuilders, a specialist blockchain consultancy.
“Consolidating the potential of our blockchain technology through partnerships like this, while taking advantage of the opportunity to work with the regulator, is another step toward strengthening our value proposition through technology,” said Rubén Nieto, Managing Director of Allfunds Blockchain.
If you’re curious about the other seven blockchain projects, we already covered one by Spanish stock exchange BME. Santander is involved in a blockchain digital custody use case. However, it may not be for digital asset custody. It’s an extension of a proof of concept in which it stored hashes of bank-issued documents on the Alastria blockchain, which proves the document’s integrity and provides a timestamp.
Another solution is the digital identity project Dalion which includes banks Santander, CaixaBank and Bankia, as well as the stock exchange BME, Alastria and others.
The other projects are:
- Eurocoinpay, a cryptocurrency merchant payment solution financially supported by the EU.
- Ithium100 is blockchain middleware. It provides an API so companies can log events or certificates on a blockchain without needing any blockchain skills
- The Vottun sandbox solution is for cross-border intercompany transactions
- Realfund is tokenizing real estate