Credit Suisse Asset Management Completes Blockchain Trial for Fund Transactions

By Swati Kishore

Credit Suisse’s subsidiary has successfully completed a Blockchain pilot for fund transactions.

The fund distribution arm of the Luxembourg Stock Exchange, Fundsquare announced the news through a blog post on Thursday, February 7, 2019. Fundsquare is the technical partner of the project.

Credit Suisse is a Zurich-based investment banking company that has operations spread across the major financial hubs of the world.

As per the announcement, Lisbon-based financial institution Banco Best and Credit Suisse Asset Management have been able to process real-time, end-to-end transactions successfully through the Blockchain trial.

The Blockchain trial utilised the FundsDLT platform. The distributed ledger technology platform was built in collaboration with InTech and KPMG for the distribution of investment fund across borders.

The Portuguese-based bank Banco Best developed a custom app and API integration for the project.

The Blockchain trial facilitated the participants in achieving scalability, efficiency, as well as faster cross-border transactions, right from the delivery of the order to the execution of the trade.

The Chief Digital Officer at Credit Suisse Asset Management, Pascal Nageli, explained,

“With the successful completion of real, live transactions, we were able to prove that considerable benefits can be achieved with distributed ledger technology for both clients and asset managers.”

Various asset management firms have been trying to integrate Blockchain Technology into their processes to streamline the fund transaction process.

Calastone, which runs a transaction network for investment funds, had in December 2018, announced that it was planning the transition of its settlement system to the Blockchain by the mid of 2019.

The leading Nordic corporate bank SEB has already tested Blockchain Technology to process mutual fund trading in September 2018.

Way back in December 2017, the US-based investment advisory firm Vanguard had said that it will integrate Smart Contracts in its business operations.

With more and more industry sectors integrating Blockchain into their processes, it appears that 2019 will be the year when Blockchain will rise from the background to headline the world’s technological advancement.