Luxembourg-based decentralised fund transaction processing platform FundsDLT and UBS Asset Management (UBS AM) have successfully completed a pilot project on the feasibility of blockchain-based fund sales.
The project aimed at exploring a front-to-back blockchain-based distribution model for mutual funds. FundsDLT and UBS AM were supported by the i.AM Lab, a Switzerland-based research and product development company. The study covered and stimulated the sales process, starting with the onboarding of investors and initiating transactions through to processing and transfer agency.
On FundDLT's blockchain-based platform, all parties involved had real-time transparency over the entire transaction, including real-time reporting and status updates. As a result, the pilot project confirmed the feasibility of a blockchain-based sales model and the advantages of digital sales of investment funds. Additionally, a distributed ledger-based fund ecosystem was shown to reduce costs and risks for all parties involved and simplify the distribution of fund solutions. These findings aim to improve the value chain in the fund business for end customers.
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