The asset management branch of Credit Suisse, Credit Suisse Asset Management, and Banco Best, a Portuguese financial institution, have partnered on an interesting blockchain project.
The two financial institutions have processed blockchain-powered live cross-border transactions of an investment fund.
The platform that was used for the transaction was FundsDLT. The latter is a decentralized platform based on blockchain. The interesting part is that the whole “fund execution” included the entire process – from the actual delivery of the order to the final trade processing.
The blockchain-based model for executing fund transactions is enabled by the distributed ledger technology (DLT) that FundsDLT is built on. The platform is an international one, and is sued to streamline a number of “lengthy” processes such as connecting payment service systems, investors and other activities together.
According to the Swiss bank, the new process powered by blockchain will allow fund transactions to be more scalable, efficient and quick.
The project between the two companies is rather interesting. Banco Best built the API and the PoC of the system. PoC means Proof-of-Concept application that helps the creator understand the actual user experience.
The use of this transaction settling method proved that the time taken from the first step to the last (settlement of the order) was significantly reduced from the normal average time.
Such processing, using a fully-fledged blockchain system for fund transactions is a very promising one, as more efficiency and scalability can be brought. Credit Suisse is also one of the first asset management service providers to complete the order fully by a blockchain-powered system.