Banco Best, Credit Suisse Complete Blockchain-based Fund Transactions

Blockchain, News | February 8, 2019 By:

Portugal-based financial institution Banco Best and Credit Suisse Asset Management have successfully completed a live end-to-end fund transactions using a blockchain platform for fund transaction processing.

For the cross-border distribution of an investment fund, the two companies utilized FundsDLT, an international blockchain platform connecting transfer agent activities, payment systems and investors. Blockchain technology was used for every step of the fund life cycle from delivery of the order to closing the trade. The transaction reportedly demonstrated the solidity of a new model that proved to be more efficient, scalable, and timely in processing, and marks another milestone for transforming fund distribution.

“This proof of concept is a great achievement and reinforces Banco Best’s commitment to be ahead of the curve,” said Carlos Almeida, Director of Investments at Banco Best. “We want to be involved in blockchain technology to work together with all stakeholders in order to adapt and seize new opportunities in our business model, with the ambition to improve the customer experience and to promote financial inclusion.”

The proof of concept used a dedicated app developed by Banco Best using its own application programming interface (API) to understand the full impact of the client experience. It reportedly showed that blockchain can reduce the time between the request and the settlement of an order in a substantial way.

“We continuously seek to improve performance for our clients. As part of our digitalization journey, we consider blockchain technology as a great lever to increase efficiency,” said Pascal Nägeli, Chief Digital Officer at Credit Suisse Asset Management. “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.”