Credit Suisse, Banco Best Processed Fund Transfer using Blockchain

Credit Suisse Asset Management and Banco Best, a Portuguese financial institution, successfully processed live end-to-end fund transactions on the blockchain-based decentralized platform, FundsDLT, according to a press release.

The Fund Transaction

The use of a blockchain based platform brings its obvious characteristics such as improved efficiency, scalability, security, transparency and faster processing. The processed transactions included all phases of the fund trade process from the real world that includes delivery of the order until the processing of the trade.

According to the announcement, Banco Best created a client-facing app and developed API integration with the FundsDLT platform to better understand the impact on overall client experience. The outcome was a substantial reduction in time between request and settlement order.

This proof of concept also makes Credit Suisse Fund Services (Luxembourg) SA one of the first asset servicing providers to process a full end-to-end fund transaction using blockchain, integrated within its core platforms.

Executive Opinion

Carlos Almeida, Director of Investments, Banco Best commented: “This proof of concept is a great achievement and reinforces Banco Best’s commitment to be ahead of the curve. 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.“

Claude Metz, Head of Shareholder Services, Credit Suisse Fund Services (Luxembourg) SA, said: “Integration with FundsDLT was very efficient and straight-forward. Blockchain technology in connection with potential mutualized KYC (know your client) servicing will be a game changer for the investment funds business. This initiative benefits investors, distributors and transfer agents greatly from an operational efficiency standpoint, and we are only at the beginning of this most promising journey.”

About FundsDLT

FundsDLT is an international initiative helping streamline the fund distribution value chain activities thereby reducing the cost for the investors across fund and investor domiciles.

FundsDLT is the result of collaboration between Fundsquare who is the lead designer,  InTech who provides IT specialist, and KPMG Luxembourg who brings experience & expertise in the asset management industry. The FundsDLT platform is built for asset managers using a private blockchain network and exposes functionality using standard REST-based APIs.