Azvalor has introduced its first tokenised investment fund, within the regulatory sandbox of the Spanish National Securities Market Commission (CNMV).
This project was developed in collaboration between Allfunds Blockchain and BNP Paribas’ Securities Services businesses performing as depository bank and fund administrator.
It sets in motion an alternative distribution model for Undertaking for Collective Investment in Transferable Securities (UCITS) funds, representing an innovative moment in the asset management sector.
The fund, called Azvalor Blockchain FI, illustrates a structural innovation in regards to fund operational flows.
The fund shares are recorded and kept on a private blockchain network, engaging Azvalor Blockchain’s infrastructure to process the varying types of transactions.
The capability to execute and settle buy-and-sell transactions in real time offers an efficient and transparent workflow with reduced processing times, according to the firm.
Azvalor says it is a key step towards creating modern and scalable systems for the distribution of UCITS funds.
BNP Paribas’ Securities Service business, as a depository bank and fund administration plays a key role in supervising the operational flows, making sure their integration between conventional processes and the new mechanisms allowed by blockchain.
Sergio Fernández-Pacheco, financial and operations director at Azvalor, comments:
“Blockchain technology will significantly enhance the user experience and provide participants with new features and services. With this project, Azvalor continues to reinforce its commitment to innovation, aiming to improve service to our co-investors.”
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