A subsidiary of Swiss multinational investment bank Depend on Suisse has completed a blockchain trial for fund transactions.
Fundsquare, the fund distribution arm of the Luxembourg Stock Exchange and the shoot’s technical partner, announced the news on its blog Thursday, saying Credit Suisse Asset Management and Portugal-based bank Banco Most outstanding have “successfully processed live end-to-end fund transactions” using blockchain technology.
For the trial, the firms employed the FundsDLT platform, developed in a partnership with professional services firm KPMG and software provider InTech, for cross-border deployment of an investment fund. Banco Best developed an API integration and created a custom app for the effort.
The test enabled the participants to execute “more efficient, scalable, and timely” cross-border transactions, “from delivery of the order to the processing of the trade,” Fundsquare indicated.
“With the successful completion of real, live transactions, we were able to prove that considerable benefits can be gained with distributed ledger technology for both clients and asset managers,” said Credit Suisse Asset Stewardship’s chief digital officer Pascal Nägeli.
Other asset management firms have been exploring the just the same use case for blockchain tech. Back in December, Calastone, operator of a London-based transaction network for investment funds, thought it was looking to move its entire settlements system to a blockchain by May 2019.
In December 2017, U.S. mutual funds manager Vanguard indicated it will begin using smart contracts over a private blockchain for some of its business operations soon. Nasdaq and Sweden’s SEB bank also tested blockchain for interactive fund trading last September.
Credit Suisse image via Shutterstock