BNPP AM uses blockchain for fund trading
Paris-headquartered firm BNP Paribas AM (BNPP AM) succesfully completed a full end-to-end fund transaction test at the end of 2017, using the new blockchain programme Fund Link.
The test, conducted leveraging on BNP Paribas Securities Services’ Fund Link and FundsDLT, a blockchain-based decentralized platform for fund transaction processing, which has been developed through collaboration between Fundsquare (a subsidiary of the Luxembourg Stock Exchange), InTech (a subsidiary of POST Group) and KPMG Luxembourg.
Although Natixis AM ran the first real blockchain transaction in the history of investment funds in July 2017, BNPP AM’s novelty was the ability to demonstrate that Fund Link is able to connect with other blockchains – opening the door to a new model of interoperability for fund distribution.
Through the test, BNP Paribas Securities Services becomes one of the first asset servicing providers to process a full end-to-end fund transaction using blockchain technology, which is integrated within its core platforms.
Fabrice Silberzan, chief operating officer, BNP Paribas Asset Management 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.”
Arnaud Claudon, head of Asset Managers, BNP Paribas Securities Services, added: “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. This transaction is a continuation of the work we started earlier last year and is fully aligned with our goal of co-creating with external partners and the wider market.”