Technology

Fund processing costs are projected to rise by 32% over the next three years, presenting a growing challenge for firms to modernise. 

Fund managers in Asia face regulatory hurdles, market fragmentation and data transparency challenges – especially in ESG investments – amid rapid digital transformation, said Alvin Chia, head of digital assets innovation, APAC, at Northern Trust. 

The asset servicing giant is looking to integrate OpenAI’s technology and expertise to enhance its proprietary enterprise AI platform, Eliza. 

The project’s goal is to facilitate a seamless and regulated exchange of digital assets and cash as collateral.

This move is part of a broader strategy to modernise financial market infrastructure while maintaining the safety and efficiency of existing systems. 

The integrated platform, gone live across NPS’ global operations, provides investment teams with a holistic view of global equity and fixed income portfolios on a single platform.  

The integration will enable financial institutions to securely custody, stake and issue tokenised assets on the blockchain. 

The Boston-based asset manager will enhance its existing processes and reduce the number of manual processes within the business.  

The new service allows firms to use traditional and digital assets as collateral, with a view to streamlining operations, enhancing portfolio management and reducing counterparty risk. 

BNP Paribas, BNY, Citi, Clearstream, Computershare and State Street were among the participants in the funding round.