Blockchain Fund Record-Keeping Platform Trialed By OFI Asset Management

Announcements, Blockchain | January 12, 2018 By:

OFI Asset Management, an investment solutions provider for French and European investors, has successfully carried out live blockchain transactions on SETL‘s fund record-keeping platform, IZNES.

IZNES, the pan-European fund record-keeping platform based on blockchain technology, enables firms to enter into new relationships with investors and manage KYC (know your customer) processes. It also enables investors and distributors to easily subscribe and redeem fund units via a direct connection with the asset management company. Compatible with all distribution channels, IZNES relies on proprietary technology developed by UK-based financial blockchain firm SETL.

OFI Asset Management said it has successfully used the IZNES system in a series of trials with selected clients. The system removes the need for the transfer agent, which in turn reduces transaction costs. IZNES also increases transparency, optimizes operational workflow and will in time enable the development of new value-added services.

“The flexibility of IZNES allows it to be deployed with minimal impact on other business processes and logic,” said Pierre Davoust, CEO SETL France. “This enables investors, distributors and asset managers to operate their usual internal tools to process their orders on the SETL blockchain.”

Other asset managers in the IZNES initiative include Groupama AM, La Financière de l’Échiquier, and Arkéa Investment Services. These companies joined in the initial version of the platform in July 2017 and have been involved in the validation process of the technology.

SETL said the production phase demonstrated IZNES’ interoperability with the existing fund distribution ecosystem; the units currently used for the transactions already existed, and have not been created specifically for blockchain. The IZNES system aims to support to support the creation, issue, transfer and redemption of new units designed specifically for blockchain use.

“This is an important step in bringing 21st Century technology to the asset management sector, including reduced costs, better transparency and workflow,” said Peter Randall, CEO of SETL. “When this project is fully operational, it will be the largest single instance, by value, of a permissioned blockchain in the world.”