Capital markets News

UBS trials FundsDLT blockchain distribution platform


Yesterday blockchain fund distribution platform FundsDLT said it completed a proof of concept with UBS Asset Management (UBS AM). The end-to-end trial included onboarding investors and the transaction life cycle from initiation to settlement and transfer agents.

FundsDLT’s purpose is to streamline the distribution process, cutting costs through automation and efficiencies.

“We see technology as a differentiator and innovation as foundational. We are constantly seeking to leverage emerging technologies to provide the best services and products to our clients,” said Patric Huber, Head of Product Strategy at UBS AM. 

“The successful proof-of-concept pilot in collaboration with FundsDLT has demonstrated promising potential of distributed ledger technology in making the fund value chain more efficient, transparent and convenient for our clients across front, middle, and back offices.”

The other big Swiss bank, Credit Suisse, conducted a similar proof of concept in February 2019. It subsequently participated in the FundsDLT Series A alongside Clearstream, the Luxembourg Stock Exchange (LuxSE) and Natixis Investment Managers. FundsDLT was founded by FundsSquare, a LuxSE subsidiary.

FundsDLT went into production in late July with Italy’s Azimut Group (AUM EUR 75 billion / $88 bn) the first to launch.

The platform uses an enterprise variant of the Ethereum blockchain.

Meanwhile, other organizations exploring blockchain for fund distribution include CalastoneAllfundsIZNES, FundAdminChain, amongst others.