Three financial institutions are successfully testing the blockchain-based settlement of investment fund units. The fund industry is thus regaining a proximity to investors that has been lost in recent years.

The stage is now set for future fully digital fund launches via tokenized shares. At least, this is the conclusion of the three companies BNP Paribas Securities Services, MEAG and Ergo, which together successfully carried out a so-called technical proof of concept (PoC) for investment fund transactions on the settlement platform of the technology provider Fundsonchain. MEAG acted in the role of KVG, ERGO – as institutional investor and BNP Paribas Securities Services – as depositary and registrar and crypto securities registrar respectively.

This was made possible via Fundsonchain’s platform, which created the conditions for automating the entire fund settlement process via end-to-end processing of tokenized fund shares based on distributed ledger technology (DLT). The regulatory framework of the Electronic Securities Act (eWpG), the Regulation on Crypto Fund Shares (KryptoFAV) and the Regulation on Requirements for Electronic Securities Registries (eWpRV) has already been fully taken into account.