The Luxembourg fund industry is exploring how the uptake of distributed ledger technology can be applied to radically transform the asset management business, adopting a consortium-based approach involving nine leading banks, professional services firm PwC and local startup Scorechain.
Pierre Gérard, CEO of Scorechain, says the collective has already identified several use cases in the fund distribution and asset servicing industry that the banks are keen to explore.
“As any Blockchain initiative the network effect is the main key to success,” he says. “We aim to move beyond slideware and begin developing prototypes to test their integration within existing infrastructures.”
The nine founding bank members of the Fundchcain coalition include BIL, BNP Paribas, CACEIS, European Fund Administration, HSBC, ING Luxembourg, Pictet, RBC Investor & Treasury Services, and Société Générale Bank & Trust.
For Sebastien Danloy, CEO of RBC Investor Services: “Blockchain should be viewed as a fundamental infrastructure. It will be a key part of how the client experience is reconfigured and retooled and the funds industry needs to learn from and work with this emerging sector to turn potential disruption into opportunities.”