Blockchain Solutions for Asset Management

With Ethereum-based tokens, you can digitize traditional securities and create new financial instruments. ConsenSys helps you easily integrate blockchain technology so you can seamlessly issue customizable assets and streamline compliance, onboarding, lifecycle management, asset servicing, and distribution.

Rapidly issue secure and customizable assets

rapidly issue secure and customizable assets
The Problem

Asset issuance today is a slow and complex process that involves multiple intermediaries. Legacy systems make institutions slow to react to ever-changing investor demands and increasingly stringent financial regulations.

The Solution

Codefi streamlines the entire asset issuance and lifecycle management process. We offer the rapid, secure, and customizable issuance of digital assets, fully encoded and automated with investor rights and obligations, and also compliance attributes.

The digitization of both traditional securities and new financial instruments allows the monetization of a wider range of assets. Customizable issuance and rapid time-to-market allow issuers to match digital asset attributes directly with investor demands. These advancements, compounded with fractionalized ownership and reduced operational costs give rise to several game-changing benefits. Most prominently, it broadens access to a wider market of potential investors, increasing market size, and encouraging robust liquidity. It skyrockets secondary market opportunities, significantly reduces counterparty risk, raises the velocity of the funding process, and unlocks capital at lower costs.

Read about Mata Capital’s partnership with Codefi to tokenize three funds worth a total of  €350m→

Automate compliance across global markets

automate compliance across global markets
The Problem

The requirements for compliance and regulatory reporting have intensified significantly in order to keep up with the pace of financial innovation. Traditionally, companies have relied on monthly or quarterly manual audits that are inefficient and prone to human error, manipulation, and fraud. Companies that operate internationally additionally find it challenging to comply with evolving regulations across multiple jurisdictions.

The Solution

Codefi issues digital assets on an immutable ledger, with built-in compliance functions and automated real-time transaction monitoring. We create digital assets that behave similar to existing asset classes with code that is modeled after traditional securities law, and we program compliance attributes to adhere to specific regulations according to intended geographic distribution. Our platform can extend permissions to regulators enabling real-time oversight of asset and network activities. Compliant digital assets with the behavior of conventional asset models, and transparent reporting to relevant stakeholders reduces investor and regulator uncertainty, and helps promote approval and adoption.

Manage the entire asset lifecycle on one platform

manage the entire asset lifecycle on one platform
The Problem

Traditional fund subscriptions and asset lifecycle management are reliant on complex, manual, paper-based processes involving a handful of intermediaries. These processes are prone to human error, data manipulation, and fraud, and often occur in siloes, requiring frequent data reconciliation. Fractured fund administration results in accumulating costs, high subscription fees, and poor investor experience.

The Solution

Codefi digitizes security lifecycle events on one platform. It retains a single source of truth for all platform activity and facilitates data accessibility, eliminating the need for manual reconciliation. This optimizes a full range of corporate actions, from dividend and proxy voting, to splits, issues of rights and warrants, takeovers and exchanges— simplifying the investor experience.

The fully digital lifecycle facilitates network governance, enhances investor relations, and enables real-time cap-table management. The coded business logic reduces human errors, eliminates the need for third-party asset servicing, significantly improves efficiency, and reduces costs.

Distribute digital assets directly to investors

distribute digital assets directly to investors
The Problem

Upon issuance, investment firms traditionally rely on banks, brokers, and other intermediaries to distribute their products. This incurs middleman costs and promotes a removed relationship from investors, limiting a firm’s ability to manage the investor experience.

The Solution

Codefi enables direct asset distribution on its digital asset marketplace. We connect issuers directly with investors and facilitate peer-to-peer markets, creating secondary market opportunities and promoting greater liquidity. We enable investment firms to take control over the entire asset management value chain, and eliminate transfer agent, asset servicing, and proxy administration fees in the process.

Transact with real-time settlement

transact with real time settlement
The Problem

Clearing and settlement cycles can take up to three business days from the transaction date, passing through multiple intermediaries using siloed systems. This creates delays in payment among stakeholders, and impacts cash-flow.

The Solution

Blockchain eliminates the need for intermediaries such as transfer and paying agents, central clearing houses, and central security deposits— enabling near-real-time settlement and making T+0 a reality. Accenture recently estimated that the global financial industry could save up to $10 billion by using blockchain to store and process clearing and settlement.

Upgrade data quality for asset servicing

upgrade data quality for asset servicing
The Problem

Custodians currently rely on a number of sources to provide accurate security reference and fundamental asset reference data that aligns with changes from corporate actions and associated events. For this, custodians must pay premium fees and work to standardize information that is critical for almost every major system and process across the industry.

The Solution

Blockchain transforms the way digital asset data is collected, validated, updated and maintained, by providing a single source of truth that eliminates the need for data reconciliation. We supply trusted, machine-readable data sets that run mission critical processes and analytics. This streamlines data cleansing and utilization, reduces costs, and facilitates the experience of issuers, investors, custodians, and other stakeholders.

Work with ConsenSys to launch your blockchain solution for asset management.

Benefits of Blockchain in Asset Management

Wider Asset Monetization

Wider Asset Monetization

Asset tokenization can be applied to both traditional securities and new financial instruments, expanding types of assets under management.

Products Tailored to Market Demand

Products Tailored to Market Demand

Assets can be customized to meet specific investor requirements, and slow settling financial products can be restructured to better adapt to changing demand. 

Wider Market Access and Lower Risks

Wider Market Access and Lower Risks

Fractionalized ownership, global distribution, and the reduced cost of issuance ensure affordable assets are accessible to larger investor pools. 

Heightened Secondary Market Opportunities

Heightened Secondary Market Opportunities

Increased connectivity between digital assets and associated networks expands secondary market opportunities and improves the potential for liquidity.

Immediate Post Trade Processing and Settlement

Immediate Post-Trade Processing and Settlement

Blockchain activates immediate change in records of ownership, arrangement of transfer and settlement of funds.

Process Efficiency and Reduced Costs

Process Efficiency and Reduced Costs

Smart contracts automate asset mgmt processes including compliance, KYC/AML, registry maintenance, payment settlement, transaction monitoring, and reporting. This produces significant time and cost savings.

Explore Real Estate Blockchain Solutions

Leverage blockchain to unlock the opportunities created by real estate digital assets. Work with ConsenSys to forge new business models, enhance the underlying operations of real estate, reduce costs, minimize data silos and increase transparency.

Explore Real Estate Blockchain Solutions

Asset Management Case Studies and Webinars

Asset Management News and Insights

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ConsenSys Codefi

The complete blockchain application suite for digital asset management

Codefi allows asset managers to create, issue, and manage the lifecycle of digital assets, associated markets, and digital financial instruments on permissioned blockchain networks.

  • Create financial products that are not currently securitized, including accounts payable, invoices, and supplier service contracts. Build on the connectivity between fully digitized assets to form new financial products and services.
  • Better meet investor and market demands by restructuring slow settling financial products, and customizing asset issuance directly for investor specifications.
  • Unlock liquidity by enabling fast and secure peer-to-peer asset transfers to expand secondary market opportunities and attract further investors to your network.
  • Access global markets, broaden your investor base, and amass more diversified assets under management with international distribution capabilities.
  • Achieve optimal operational efficiency and reduce costs with automated processes, and a distributed and mutualized market infrastructure.
Learn more about Codefi’s digital assets platform →
Ready to integrate blockchain into your asset management stack? Get Started Today.