The Luxembourg Stock Exchange (LuxSE), in collaboration with other financial institutions, has created a blockchain-based platform that would enable the effective distribution of funds.
According to a press release today, the new platform dubbed FundsDLT was launched alongside major European financial institutions, including Clearstream Banking, Switzerland-based Credit Suisse Asset Management, and Natixis Investment Managers.
The partners raised an undisclosed amount in Series A funding that will be used to strengthen the platform and accelerate its commercial development, thus developing a novel decentralized technology platform for the investment funds industry.
FundsDLT is built on the Ethereum blockchain with priority placed on high performance, transparency, and privacy. The platform was also designed to aid the fund distribution value chain, from front to back, covering the entire fund lifecycle.
The FundsDLT platform will streamline several fund administration and order-routing tasks by utilizing blockchain to automate a range of processes most securely and efficiently.
In addition, asset managers and other asset service providers can use the platform to significantly cut administrative cost and time used to process transactions by removing redundant activities.
FundsDLT Offers Many Benefits
Commenting on the development, Robert Scharfe, CEO of the Luxembourg Stock Exchange stated that the move is imperative to promote the adoption of the blockchain technology and digital assets in the global financial industry while adding:
“The Luxembourg Stock Exchange has played a catalyzing role in this development, and it is exciting to see the expanding ecosystem around FundsDLT.”
Also reacting to the development, Michel Degen, Head of Credit Suisse Asset Management said:
“As part of our digitalization journey, we consider FundsDLT as a further powerful lever to increase efficiency but also to create new distribution channels, enabling considerable benefits for both clients and asset managers.”
