BBVA Asset Management Unveils Tokenized Fund Through CNMV Sandbox Initiative
In Brief
BBVA Asset Management has rolled out the BBVA Token Renta Fija Corto Plazo pilot fund, marking a significant leap towards integrating blockchain technology into asset management practices.
The investment branch of the BBVA Group, BBVA Asset Management The Asset Management division has announced the initiation of a pilot scheme to integrate blockchain into asset management. This includes the establishment of a tokenized short-term fixed income investment fund within the regulatory sandbox provided by Spain's National Securities Market Commission (CNMV).
"This initiative represents a major advancement towards harnessing a technology that holds tremendous potential to transform asset management,\" remarked Belén Blanco, CEO of BBVA Asset Management Europe, in a press statement. \"Launching within a structured and regulated framework will allow BBVA AM to navigate the benefits in a secure and scalable manner,\" she added.
The pilot fund, dubbed BBVA Token Renta Fija Corto Plazo, will see its units registered and managed on a private blockchain—the Allfunds Blockchain network. BBVA AM will serve as both the manager and promoter of the fund, utilizing this network alongside smart contracts and nodes to facilitate transactions.
BBVA AM's Pilot Fund Aims to Test Operations and Explore the Advantages of Blockchain in Asset Management
For investors, the process will closely resemble that of a conventional fund, with subscription and redemption transactions recorded on the blockchain, ensuring the typical investment experience remains unaffected. Currently, the fund remains exclusive to employees of the fund manager as it is still in its pilot stage, allowing BBVA AM to assess the viability and benefits of blockchain for asset management applications.
BBVA AM boasts a robust presence across Spain, Mexico, and Latin America, overseeing assets that exceed €76 billion. Their portfolio spans a diverse range of products covering key asset classes and various investment strategies. Last year, BBVA AM's Swiss division partnered with Ripple-owned Metaco to enhance its digital asset services by adopting the latest version of Metaco’s Harmonize platform. The bank takes advantage of Metaco’s solutions through a Software-as-a-Service (SaaS) approach.
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