Schroders has confirmed it is exploring the tokenization of funds with fund distribution platform Calastone. Part of the work is with the Monetary Authority of Singapore (MAS), where it is participating in Project Guardian, which explores the use of public blockchains for institutional tokenization.
In Singapore, variable capital companies (VCC) are a popular vehicle for funds. The MAS trial will use this structure for tokenization. However, the asset manager won’t purely use it for broad retail reach. Instead the technology will also be used to enable greater personalization and to automate a lot of the functionality.
Marita McGinley, Head of Digital Assets Strategy, Schroders believes tokenizations major advantages include “synchronised data and heightened automation. Moreover, it expands accessibility and enables customisation, providing investors with more options. Managed in a responsible way, we think this is good for clients and for the market.”
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