Capital markets News

Vanguard adopts new DLT asset management solution

dlt asset management funds vanguard

Vanguard Super Australia has started to use DLTA, a DLT-based back office solution for asset management developed by Australian firm Grow Inc

The solution reduces manual processes, providing efficiencies from straight through processing. It enables fund and investor transactions to be tracked on a shared ledger.

According to Grow, it saves about 100 hours of weekly work in the back and middle office, and reduces errors that could otherwise turn off clients.

While Vanguard Australia is using the solution for its pension business, DLTA can also be used by wealth managers.

“The product verification phase allowed us to iron out most of the potential issues, and the partnership with GROW started strongly,” said Michael Lovett, CEO at Vanguard Super Australia. “The focus on higher volume join and money in transactions being straight through processed has been validated.”

DLTA uses R3’s Corda enterprise blockchain. Since ASX paused its DLT CHESS project three weeks ago, this is the second major Australian DLT project to launch. Clearing firm FinClear unveiled its FCX blockchain for unlisted stocks using the Daml smart contract language, the same technology as ASX.

After a slow start, the asset management sector is the latest to embrace blockchain. Fund distribution platforms such as CalastoneAllfunds and FundsDLT have been active for years. But 2022 has seen the entrance of some big names such as KKR, the UK’s abrdn and Apollo. Fund administration firm Apex acquired FundAdminChain

Meanwhile, Vanguard has a close relationship with blockchain developer Symbiont in the United States and has been involved in multiple projects, including for forex derivatives margins.