Major European financial institutions have come together to build a blockchain investment fund platform FundsDLT to cater to various business needs of the industry. A brainchild of Luxembourg Stock Exchange, FundsDLT, has begun its Series A round. Other notable partners include Credit Suisse Asset Management, Fundsquare, and Natixis Investment Managers.
The official announcement mentions that the blockchain investment fund platform FundsDLT platform will be powered by Ethereum. It will help cut costs incurred by the various commercial industry participants such as asset managers, supply chain components, distributors, and institutional fund houses. It helps lower prices by eliminating redundant operations, increasing transparency, and improving digital fund distribution.
Blockchain investment fund platform FundsDLT to streamline financial processes
FundsDLT uses distributed ledger technology to improve various financial transaction operations and processes. The financial industry is going through a rapid transition phase where innovative technologies are implemented across the board. Smart contracts and DLT will help streamline account management, registrations, settlements, distribution, transaction processing, and reporting.
Being Ethereum based, the system already has many in-built DLT advantages. However, it also uses the Quorum system to deliver more performance and privacy to the users. The platform itself does not provide any cryptocurrency trading or transaction services but merely uses DLT to help other service providers improve their efficiency.
Financial institutes now prefer blockchain applications
Joseph Pinto of Natixis Investment Managers said that blockchain is becoming crucial for the investment fund industry. The blockchain transition comes with innumerable challenges, and not every investment fund is ready to take on the challenge. Here, DLT can come in handy as it promises security, privacy, and transparency that are the cornerstone of the investment industry.
The increasing application of blockchain technology in the financial sector has helped it enter the mainstream. Given its reliance on transparency and privacy, there will be a marked increase in its use-cases in the future. Investment fund platform FundsDLT is a prime example of how financial institutions can collaborate to build a sustainable cross-platform solution for achieving mutual goals.