4 Major Financial Institutions Invest In Series-A for Ethereum-based Platform FundsDLT
- Financial Institutions in Europe have teamed up in a series A funding of FundsDLT.
- The FundsDLT supported on Ethereum would help streamline the whole investment sector making it cheaper and more efficient to both clients and Asset managers.
Some major titans in the European financial industry have teamed up to unleash a FundsDLT. This is a Blockchain platform tailored for the investment space. The dream team comprising of the Luxembourg Stock Exchange, Credit Suisse Asset Management, Natixis Investment Managers, and Clearstream announced a joint series A funding for the FundsDLT.
The project was an initiative of Luxembourg Stock Exchange and their affiliate Fundsquare were eventually joined by the other firms.
Based permissioned Blockchain Tech on Ethereum
Notably FundsDLT's underlying technology is the Permissioned Blockchain Technology that is supported by Ethereum. This will afford it better performance while still prioritizing privacy. FundsDLT will essentially facilitate all the changes of the fund distributions of value chain thoroughly and consequently covering the whole funds lifecycle.
The actors in the industry inclusive of asset managers, distributors, asset servicer's will then be able to chip off processes that they deem as surplus to the system and in that way reduce costs and ensure efficiency in the system. If transparency in the system is addressed it could go a long way in appeasing investors who are key players in the investment sector as highlighted in the announcement.
The top brass of the respective firms all seem to share the sentiment that this was indeed a milestone in digitalization of the investment realm. Luxembourg Stock Exchange and CEO Robert Scharfe, was particularly excited on the prospect of their brainchild being at the epicenter of the whole ecosystem.
“The Luxembourg Stock Exchange has played a catalyzing role in this development, and it is exciting to see the expanding ecosystem around FundsDLT.”
Credit Suisse lead on Asset Management Switzerland and EMEA Michel Degen was confident that FundsDLT would streamline the whole process making it cheaper and more efficient which is a win -win for both customers and managers of assets.
Whereas Joseph Pinto, Chief Global Operating Officer of Natixis Investment Managers is convinced that Blockchain technology will be instrumental in digitalization of the whole financial sector.