FundsDLT, incubated by the Luxembourg Stock Exchange, is preparing to go live next year. Library picture of the Luxembourg Stock Exchange. Photo credit: Luc Deflorenne
Four fund industry heavyweights have invested in a blockchain-based fund distribution platform in Luxembourg.
Clearstream, Credit Suisse Asset Management, the Luxembourg Stock Exchange and Natixis Investment Managers participated in a series A round for FundsDLT. The companies did not disclose the amount of the investment.
FundsDLT was started by the Luxembourg Stock Exchange and its subsidiary Fundsquare in 2016.
“FundsDLT is built using permissioned blockchain technology based on Ethereum, that ensures privacy and high performance. FundsDLT enables the reengineering of the fund distribution value chain, from front to back, covering the entire fund lifecycle. The platform allows asset managers, distributors, asset servicers, and the entire supply chain to reduce costs by removing redundant activities, while providing the opportunity to achieve necessary transparency on end investors and creating the foundation for digital fund distribution. The Series A funding will strengthen the FundsDLT platform and accelerate its commercial development.”
A spokeswoman told Delano last week that: “With regards to potential capabilities[,] FundsDLT will support transaction processing, cash settlement and the maintenance of the fund register and investor accounts.”
She said on Thursday: “As of today, there are no live client[s]. However, the plan is to onboard FundsDLT’s first clients in Q1 2021.”
During trials with test users, she reported: “the performance figures are as follows: 600 transactions per second and 25 million transactions over 4 days without [a] break.”
The companies announced the funding round on 17 March.