Credit Suisse has processed end-to-end funds transactions using blockchain technology alongside Portuguese bank Banco Best.
Chief digital officer for Credit Suisse, Pascal Nägeli, describes blockchain technology as “a great lever to increase efficiency” and notes how the experiment proves the advantages of distributed ledger technology for clients and asset managers alike.
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Claude Metz, head of shareholder services in Luxembourg for Credit Suisse, said: “Blockchain technology in connection with potential mutualised KYC (know your client) servicing will be a game changer for the investment funds business.
“This initiative benefits investors, distributors and transfer agents greatly from an operational efficiency standpoint, and we are only at the beginning of this most promising journey.”
Credit Suisse’s blockchain partners
The Swiss bank’s asset management arm and Banco Best has successfully experimented using blockchain technology alongside Fundsquare, the Luxembourg Stock Exchange’s fund distribution arm.
Blockchain technology was used at all steps of the transaction, by means of a dedicated app and API integration.
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By GlobalData“This proof of concept is a great achievement and reinforces Banco Best’s commitment to be ahead of the curve,” said, Banco Best’s director of investments, Carlos Almeida.
“We want to be involved in blockchain technology to work together with all stakeholders in order to adapt and seize new opportunities in our business model, with the ambition to improve the customer experience and to promote financial inclusion.”
Credit Suisse have not confirmed whether it would be using the technology further across its operations.
Blockchain is best known as the platform for the cryptocurrency Bitcoin, in which transactions are monitored and authorised by users of the network. All parties have the same view of transactions, and entries cannot be changed once entered, making it a more transparent, and, in theory, more efficient means of transacting.
However, among the many concerns of cryptocurrency is its scalability as the network can only approve around seven transactions per second.
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