Paul Daly, Head of Distribution Products and Solutions, BNP Paribas Securities Services, and Carole Michel, Senior Global Product Manager, Fund Distribution, discuss how DLT (Distributed Ledger Technology) and tokenization will reshape the fund distribution value chain.
From a technological evolution perspective, given the growing interest in digital assets, blockchain has the potential to become the most transformative technology in the fund industry, reducing inefficiencies in fund allocation by enabling the digitization and tokenization of fund shares.
Fund houses rely on long and complex distribution chains, making it difficult to build investor relations and control distribution costs. Blockchain use cases represent an opportunity for fund companies to reach investors directly and expand their distribution network.
Investors can now subscribe to native digital or tokenized assets via an online distributed ledger and keep these fund tokens in e-wallets they own and operate, bringing the industry closer to a self-service model.