Natixis Asset Management has revealed that, for the first time in the fund industry, investors have successfully purchased shares through a blockchain-powered fund distribution platform.

Investors used the blockchain-based platform, FundsDLT, to purchase Natixis Asset Management fund shares with real cash.

FundsDLT is the result of collaboration between Fundsquare (a subsidiary of the Luxembourg Stock Exchange), InTech (a subsidiary of POST Group) and KPMG Luxembourg. The platform is being developed to enable asset managers to sell funds through a new distribution channel, while reducing administration costs and the time to process transactions.

The successful execution means that, for the first time in the fund industry, investors are using a blockchain-based platform to purchase real funds’ shares with real cash.

First, the investors use the FundsDLT mobile app to submit the standard subscription order for the shares. The order is transmitted to the FundsDLT platform via an API, and the information is immediately and simultaneously transmitted using blockchain technology to Natixis AM and the other parties involved in the transaction, each one having its own node on the FundsDLT blockchain.

The transfer agent is the first to act by confirming the transaction and logging it as ‘approved’ or ‘declined’. Approval triggers the clearing and settlement processes.

Said Fihri of KPMG Luxembourg commented: “It is really exciting to be part of such a tremendous step forward. We not only replicated trades in the blockchain; we moved real cash and invested in a real fund.”

Matthieu Duncan, CEO of Natixis Asset Management, added: “Natixis Asset Management is delighted to have contributed to this pioneering, first blockchain-enabled trade via the FundsDLT platform. We believe the potential for blockchain technology to enhance distribution mechanisms in the asset management industry is very significant.”

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