AllianceBernstein Takes Steps Towards Tokenisation With Blockchain Collaboration

Tokenisation involves using blockchain technology to communicate sensitive information or data. A tokenised fund, which may also be known as a digital fund or a BTF (blockchain-traded fund), is one where shares or units in the fund are digitally represented and can be traded and recorded on a distributed ledger.

In a press release issued today (16 May), AllianceBernstein said Allfunds Blockhain’s technology could “transform operational processes in the fund industry” and the asset management firm would be connecting its global operational activity to the Allfunds platform.

Possible uses of the technology include efficiencies around subscriptions and redemptions of funds.

The Investment Association previously explained to Investment Week that tokenisation can offer quicker and cheaper back-office processes along with transparency of transactions for consumers.

Ronit Walny, head of AllianceBernstein’s investment innovation said she anticipates the technology “will be transformative to the asset management industry, uncovering significant transactional efficiencies and enhanced transparency as well as operational agility”.

She added the firm is “committed to delivering solutions that our clients prefer today and in the future”.

Rubén Nieto, managing director of Allfunds Blockchain added he was “very excited to collaborate with one of the leading global asset management firms and deliver our bespoke solutions to such a renowned household name”.