BNP Paribas Securities Services has joined hands with AXA and is building a blockchain-based fund distribution platform using smart contracts in order to facilitate the information flow between buyers and sellers, IBTimes reported.
The BNP Paribas Fund Link project will work on speeding up the onboarding process for both fund buyers and asset managers. This allows fund buyers using the Fund Link, to upload their profile and investor onboarding documents only once, which will be then shared with the various management companies on the platform.
“We are excited to work with BNP Paribas Securities Services on the development of this new platform. Operational efficiency is a key area for us in an increasingly competitive market environment where pressure on fees keeps rising. We believe that the new technologies (blockchain) used by this platform can significantly enhance our fund distribution process and ensure we are well placed to meet the continued regulatory demand for increased transparency,” Joseph Pinto, COO at AXA Investment Managers, stated as reported by IBTimes.
The Fund Link of BNP Paribas also focuses on improving the process of buying and selling funds through an efficient end-to-end trade execution solution that is relying on embedded business rules as well as shared information.
The project will be opened by BNP Paribas Securities Services to other clients in the near future. Also, the first functionality of the blockchain platform will be released from this year.
"There is so many new and exciting ways technology can enhance the fund distribution process. With this platform, we aim to bring many of them together to streamline fund distribution, create efficiencies and ultimately lower client costs," Jean Devambez, head of product and client solutions, Asset and Fund Services, at BNP Paribas Securities Services, said .
