European Asset Manager Amundi Launches Tokenized Share Class on Ethereum
In a significant development for the asset management industry, Amundi, one of Europe’s largest asset managers, has introduced a tokenized share class of its flagship euro cash fund. This innovative move aims to leverage distributed ledger technology to enhance the efficiency and transparency of fund transactions. The new tokenized share class is now available on the Ethereum blockchain, marking a notable milestone in the adoption of blockchain technology in traditional finance.
The Amundi Funds Cash EUR fund will operate in a hybrid setup, allowing investors to purchase traditional shares or opt for the tokenized version. The first transaction was successfully settled on November 4, according to the company’s statement. Amundi collaborated with CACEIS, a European asset-servicing firm, to develop the product, which utilizes digital wallets and a platform for handling subscriptions and redemptions.
The tokenization of fund shares enables the creation of blockchain-based records, promising faster settlement times and a more transparent audit trail. As noted by Amundi, the use of distributed ledger technology and the public Ethereum blockchain ensures "transparent record-keeping of fund units and traceability of transactions." This development contributes to Europe’s lead in regulated tokenized funds, with firms in Luxembourg, France, and Germany having issued blockchain-native fund units for years.
According to CACEIS CEO Jean-Pierre Michalowski, the new hybrid Transfer Agent service will enable investors to purchase the fund using stablecoins or central bank digital currency (CBDC). Michalowski emphasized that this innovation is a crucial step towards achieving the goal of offering 24/7 subscription and redemption services for investment fund units payable in stablecoins or CBDCs. This move is expected to increase efficiency and accessibility for investors, while also paving the way for further adoption of blockchain technology in the asset management industry.
The implications of this development are significant, particularly in the context of the cryptocurrency and blockchain space. As more traditional financial institutions embrace tokenization and distributed ledger technology, it is likely to drive increased adoption and investment in the sector. Furthermore, the use of stablecoins and CBDCs as payment options for investment fund units highlights the growing intersection of traditional finance and the crypto ecosystem. As the asset management industry continues to evolve, it is likely that we will see more innovative applications of blockchain technology, ultimately leading to greater efficiency, transparency, and accessibility for investors.
