This week the Apex Group, a global financial services company, announced it had taken a majority stake in FundAdminChain (FAC), the blockchain fund tokenization platform. Apex provides an array of financial services, which includes a big footprint in fund administration. In August last year, Apex agreed to pay $2 billion to take over Sanne Group, which has a significant alternative funds administration business.
The combination of Apex and Sanne’s business provides significant potential deal flow for FundAdminChain. Blockchain enables asset managers, investors, transfer agents and other service providers to connect to a shared network. By tokenizing funds, Apex expects to cut the cost of launching and distributing funds as well as enabling new revenue opportunities.
Blockchain acts like a shared database which means there’s a golden record of transactions, reducing the need for numerous API integrations. Additionally, because it’s a shared database, blockchain automatically logs the list of fund investors, simplifying administration.
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