FactSet has teamed up with a distributed ledger technology provider to offer its clients access to blockchain products.
Users of FactSet’s order and execution management system (OEMS) will be able to use the blockchain services provided by CG Blockchain via its BCT Fundstore.
It’s a significant move for active managers who continue to look for ways to differentiate themselves from passive funds, according to John Adam, global head of portfolio management and trading solutions at FactSet.
Speaking to The TRADE, Adam said asset managers will be able to provide asset owners with peace of mind in terms of monitoring, compliance and complete transparency.
“It allows asset owners complete comfort knowing their assets are being held in compliance on a continuous audit. Tying the OEMS using a private blockchain raises the level of accountability and is truly disruptive,” he added.
Adam explained response to the partnership has been enormous, with 17 firms already signed up to use the new services and more on the way.
FactSet and CG Blockchain claim this is the first time blockchain technology has been integrated with OEMS in real-time providing asset owners with a continuous record of transactions.
“This mutually beneficial alliance plugs FactSet into the multi-hundred billion-dollar blockchain market that is currently experiencing exponential growth,” said Bob Bonomo, president at CG Blockchain.
“It gives FactSet clients access to institutional-grade blockchain-based apps and tokenised ecosystems. Each of these factors positions FactSet for increased market share and places it at the forefront of this industry segment.”