TECHNOLOGY

BNP Paribas Asset Management uses blockchain for fund transactions

Asset manager has completed test of end-to-end fund transaction using blockchain technology.

By Hayley McDowell hayley.mcdowell@thetradenews.com January 10, 2018 12:30 PM GMT

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

The test was conducted using BNP Paribas Securities Services’ Funds Link and FundsDLT blockchain platforms, which were developed alongside the Luxembourg Stock Exchange’s Fundsquare, InTech and KMPG Luxembourg.

BNP Paribas asserted the test demonstrated Fund Link’s ability to connect with other blockchains, marking a milestone for fund distribution from delivery of the order to the processing of the trade. 

Fabrice Silberzan, chief operating officer at BNP Paribas Asset Management, described the test as a unique opportunity to shape the future of the asset management industry. 

“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,” he said.

The asset manager is among the first to take part in blockchain prototype testing, which it said is in line with its growth plans that put innovation and technology at the forefront of its strategy. 

Said Fihri of KPMG Luxembourg explained the pool of buy-side firms using FundsDLT to perform test transactions is expanding and the participation of BNP Paribas Asset Management is an indication of its growing maturity.