March 28, 2024

Luxembourg Stock Exchange and Credit Suisse Launch Ethereum FundsDLT Platform

The Luxembourg Stock Exchange, together with Credit Suisse and other financial institutions, is preparing to launchFundsDLT investment platform based on the Ethereum blockchain.

The Stock Exchange is working on the creation of the system.Luxembourg and its subsidiary Fundsquare, Credit Suisse Asset Management, Clearstream and Natixis Investment Managers. Thanks to the use of distributed ledger technology (DLT), FundsDLT will reduce the costs of asset managers, distributors and institutions serving cryptocurrency firms, eliminating the need for unnecessary actions and ensuring a completely transparent distribution of funds.

According to one of Credit Suisse’s employees,DLT and smart contracts will simplify account management, transaction processing and reporting on settlements. He added that in addition to the Ethereum blockchain, the platform uses the Quorum privacy protocol to provide a higher level of security.

The company representative said that the platformfocus on providing services that usually require the participation of intermediaries, however, DLT will make this process much faster and more efficient. Joseph Pinto, operations director of Natixis Investment Managers, noted the need to implement blockchain in the field of investment management, which will allow all interested parties to clearly monitor the receipt and distribution of funds received. In addition, the developers of the platform FundsDLT announced the opening of the round of financing of series A.

Credit Suisse began testing the technologyblockchain for processing transactions with investment funds back in February last year, and quite successfully. Credit Suisse top manager Emmanuel Aidoo later stated that the adoption of blockchain in the banking and finance industry is being held back by bankers’ desire to maintain the “status quo.”

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