Asset manager Azvalor announced the launch of its first tokenized investment fund, within the regulatory sandbox of the Spanish National Securities Market Commission (CNMV). The project is developed jointly by Allfunds Blockchain and BNP Paribas’ Securities Services business acting as depositary bank and fund administrator and introduces an alternative distribution model for UCITS (Undertaking for Collective Investment in Transferable Securities) funds.
The fund, named Azvalor Blockchain FI, represents a structural innovation in terms of fund operational flows. The fund shares are registered and stored on a private blockchain network, using Allfunds Blockchain’s infrastructure to process the different types of transactions. Although the fund will not be open to distribution in this initial phase, this launch enables selected investors to validate new operational features.
The breakthrough of this project is the possibility to execute and settle buy-and-sell transactions in real time, enabling a faster, more transparent and efficient workflow and significantly reducing processing times as well as improving the investor experience.
BNP Paribas’ Securities Services business is managing the operational flows, ensuring integration between traditional processes and the new mechanisms enabled by blockchain. This collaboration allows regulatory and operational standards to be maintained while exploring new ways of optimizing services and market infrastructure.
“Blockchain technology will significantly enhance the user experience and provide participants with new features and services. With this project, Azvalor continues to reinforce its commitment to innovation, aiming to improve service to our co investors,” said Sergio Fernández-Pacheco, Financial and Operations director at Azvalor Asset Management, in a statement.
“Real-time execution and settlement of transactions on tokenized funds represent a qualitative leap in distribution infrastructure. This project demonstrates how blockchain can deliver real efficiency and new opportunities in fund operations,” said Rubén Nieto, managing director at Allfunds Blockchain, in a statement.
“Our participation as depositary bank and fund administrator of this tokenized fund reflects our commitment to innovation and to the evolution of our services, leveraging the opportunities offered by new technologies. Real-time operational-flow management is a natural evolution toward a more dynamic and transparent model for our clients,” said Soledad Lecube, head of Spain for the Securities Services division of BNP Paribas, in a statement.