- Standard Chartered teams up with FundsDLT to utilize its blockchain software for fund transfer agency services, initially targeting the Middle East and North Africa regions.
- FundsDLT’s platform offers key benefits like efficiency, cost reduction, and real-time cash collection by allowing permissioned data sharing among asset managers, distributors, and investors.
Standard Chartered’s Blockchain Integration for Fund Services
Standard Chartered, a leading international banking group, has entered a partnership with FundsDLT to use its blockchain software for providing innovative fund transfer agency services. This collaboration will initially focus on asset managers in the Middle East and North Africa.
Transforming Fund Management with Blockchain
FundsDLT, a brainchild of the Luxembourg Stock Exchange and recently acquired by Deutsche Börse Group, has developed a robust platform for transfer agency and fund distribution. This platform is set to revolutionize how asset managers, distributors, and client investors interact and manage funds.
Key Features of FundsDLT’s Software
- Efficiency and Cost Reduction: At the heart of FundsDLT’s software are efficiency and cost reductions. By enabling permissioned data sharing, the platform streamlines processes, reduces operational costs, and supports real-time cash collection.
- Accelerated Processes and Reduced Operational Cost: Ying Ying Tan, Global Head of Products – Financing & Securities Services at Standard Chartered, emphasizes the platform’s role in transforming traditional transfer agency services. The goal is to offer streamlined processes and reduced costs for asset managers and their clients.
Standard Chartered’s Blockchain Ventures
In addition to its collaboration with FundsDLT, Standard Chartered has made another significant stride in blockchain fund management. SC Ventures, a subsidiary of the bank, has incubated Libeara, a tokenization platform. Libeara’s first offering, in partnership with Fundbridge Capital, aims to tokenize a Singapore dollar government bond fund.
The Broader Impact on the Funds Sector
- Tokenization and Liquidity: These initiatives target different but complementary aspects of the funds sector. Tokenization of funds, for instance, allows for fractional investment, enhancing liquidity and accessibility.
- Data Sharing and Personalization: Blockchain technology not only brings efficiency but also opens up new possibilities for personalization in asset management. By gaining better visibility into end investors, asset managers can tailor their offerings more effectively, especially when the underlying assets within funds are tokenized.
Carlyle-owned Calastone, a pioneer in integrating blockchain into the funds sector, has been advocating for this vision since 2019. Working with Schroders on a Singapore pilot, Calastone is bringing its vision to reality, exemplifying the transformative potential of blockchain in fund management.
In summary, Standard Chartered’s partnership with FundsDLT marks a significant advancement in the use of blockchain technology in the financial sector. By harnessing the power of blockchain, the bank is set to offer more efficient, cost-effective, and personalized services in fund management, potentially reshaping the landscape of asset management in the Middle East and North Africa.