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BNP Paribas AM cites blockchain role in fund distribution

BNP Paribas Asset Management said there is a “unique opportunity” to transform the future of asset management with digital technology after the firm completed a fund transactions experiment using blockchain.

BNP Paribas AM is part of a group that says a recent project to examine blockchain’s ability to support full end-to-end fund transactions had demonstrated an interoperability between blockchains and had marked a milestone in the evolution of fund distribution.

The French asset manager leveraged Fund Link, a blockchain programme created by the firm’s related custody bank division, BNP Paribas Securities Services, and a blockchain fund transaction platform called FundsDLT, which was developed by Fundsquare, a Luxembourg-based market infrastructure provider.

KPMG Luxembourg and IT firm InTech were also part of the project.

The test showed that Fund Link can connect with other blockchains, the group said, adding that transactions included each part of the fund process, from delivery of orders, to processing trades.

Fabrice Silberzan, chief operating officer BNP Paribas AM, said that blockchain would allow investors to benefit from reduced transaction time – and that the firm itself would profit from a streamlined system.

He added: “We have a unique opportunity to continue shaping the future of the asset management industry using digital technology, and transform the fund distribution process.”

Olivier Portenseigne, managing director at Fundsquare, said Fundsquare aimed to collaborate with major players in the funds industry.

This occurred in July 2017, when what was claimed to be the “first real” blockchain fund transaction was carried out and involved fund manager Natixis Asset Management.

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