BNP Paribas Completes Fund Transaction Using Blockchain Technology

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BBR Staff Writer Published 11 January 2018

BNP Paribas Asset Management has conducted a full end-to-end fund transaction test by using blockchain technology.

The transaction test has been completed by using blockchain program called Fund Link or FundsDLT.

The program is a blockchain based decentralized platform for fund transaction processing, which was developed in collaboration with Fundsquare, InTech and KPMG Luxembourg.

According to the company, the test showed that Fund Link can connect with other blockchains, helping in effective fund distribution.

The transaction included each step of the fund trade process ranging from delivery of the order to the processing of the trade.

The test will also allow BNP Paribas to process a full end-to-end fund transaction using blockchain technology which is integrated within its core platforms.

BNP Paribas Asset Management chief operating officer Fabrice Silberzan said: “We have a unique opportunity to continue shaping the future of the asset management industry using digital technology, and transform the fund distribution process.

“While investors will benefit from reduced transaction time, we will also profit from a sleeker, more streamlined system underpinned by technology and relevant for all fund types and geographies.”

BNP Paribas Securities Services asset managers head Arnaud Claudon said: “This is a key milestone in our Fund Link project as it showcases the interoperability of our platform, something which will be key to us moving forward.”

Separately, BNP Paribas Asset Management has introduced actively managed emerging markets fixed income mutual fund in the US.

The fund will offer investors with risk-adjusted returns and enhanced diversification opportunities by investing primarily in fixed income instruments issued by emerging entities, both sovereign and non-sovereign, denominated in local and hard currencies.

Image: BNP Paribas has completed a full end-to-end fund transaction test by using blockchain technology. Photo: courtesy of BNP Paribas.