TECHNOLOGY

BNP Paribas completes fund transaction using blockchain

BNP Paribas Securities Services is one of the first asset servicing providers to process fund transactions using blockchain.

By Hayley McDowell hayley.mcdowell@globalcustodian.com January 10, 2018 2:32 PM GMT

BNP Paribas Asset Management has completed a full end-to-end fund transaction test using blockchain technology with the help of the bank’s Securities Services business.  

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 explained 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.  

Arnaud Claudon, head of asset managers at BNP Paribas Securities Services, described the test as a key milestone for the firm’s Fund Link project. 

“This transaction is a continuation of the work we started earlier last year and is fully aligned with our goal of co-creating with external partners and the wider market,” he said.

BNP Paribas Securities Services is one of the first asset servicing providers to process a full end-to-end fund transaction using blockchain technology. 

Fabrice Silberzan, chief operating officer at BNP Paribas Asset Management, added the test is 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.