- Deutsche Börse Group’s blockchain-based FundsDLT platform successfully tested with Zürcher Kantonalbank and UBS Asset Management for fund subscription orders.
- Standard Chartered reported 60% cost savings after implementing FundsDLT for its Middle East transfer agency operations last year.
- Despite being ranked the second safest bank globally, Zürcher Kantonalbank has embraced blockchain innovations including cryptocurrency services and digital bond issuances.
Deutsche Börse Group’s blockchain fund distribution platform FundsDLT has demonstrated new progress with two major Swiss financial institutions joining a recent pilot. Zürcher Kantonalbank executed a subscription order for UBS Asset Management fund units on the blockchain platform, marking a significant advancement in digital asset transaction processing for the banking sector.
The pilot enabled Zürcher Kantonalbank to monitor the transaction’s status and execution in real-time through FundsDLT’s blockchain infrastructure. The platform, originally developed by the Luxembourg Stock Exchange before being acquired by Deutsche Börse Group, aims to enhance transparency and eliminate inefficiencies in fund distribution processes.
“The use of blockchain should enable our customers to process transactions even more efficiently in the future,” stated Peter Hubli, Head of Digital Asset Solutions at Zürcher Kantonalbank. He added that “Blockchain technology can offer added value in the future.”
Industry adoption of FundsDLT appears to be accelerating, with Standard Chartered implementing the technology for its Middle East transfer agency business in August 2023. After approximately one year of operation, the bank reported impressive 60% cost reductions, prompting consideration of offering digital transfer agency solutions to other market participants.
This recent pilot represents continued development of the platform, as both UBS and Zürcher Kantonalbank had previously participated in separate FundsDLT trials four years ago.
Zürcher Kantonalbank, ranked as the world’s second safest bank, has been notably progressive in its approach to distributed ledger technology despite its conservative reputation. In late 2023, the bank began offering cryptocurrency services to clients through a partnership with Crypto Finance, another Deutsche Börse Group subsidiary.
The bank’s blockchain initiatives extend beyond cryptocurrency services. As a member of SIX Digital Exchange, Zürcher Kantonalbank has facilitated at least two digital bond issuances for the City of Lugano, with the most recent implementation also utilizing Switzerland‘s wholesale central bank digital currency (CBDC).
For those interested in banking innovations with digital assets, Ledger Insights Research has published a comprehensive report covering over 70 bank-issued stablecoin and tokenized deposit projects. Find out more here.
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