BBVA Asset Management launches a ‘tokenized’ fund through the CNMV sandbox
BBVA Asset Management (AM) has launched a pilot project capable of applying blockchain technology to asset management, in line with its strategy of harnessing innovation for the benefit of its clients. To succeed, it has registered a short-term fixed-income ‘tokenized’ investment fund through the regulatory sandbox of the Spanish National Securities Market Commission (CNMV).
The regulatory sandbox is a mechanism allowing for controlled and limited testing, under the supervision of the competent authorities (CNMV, Bank of Spain and the Directorate General of Insurance and Pension Funds), to analyze the viability of new business models or the use of new technologies in the provision of financial services.
BBVA Token Renta Fija Corto Plazo is an investment fund whose units will be registered and stored in a ‘private blockchain’ network, more precisely the Allfunds Blockchain network. BBVA Asset Management acts as fund manager and promoter, relying solely on the network, smart contracts and nodes raised in the Allfunds Blockchain network to process orders.
For the unitholder, investing in the fund will be the same as it would be for a more traditional fund, except that subscription and redemption orders will be managed and recorded via blockchain, without this affecting the investor experience.
As a pilot project, this fund is not open for trading, but is only available to employees of the fund manager, thus allowing BBVA AM to explore the use of blockchain technology for asset management purposes.
The project has been made possible thanks to the joint efforts of BBVA AM and other BBVA Group teams, most notably those devoted to digital assets and blockchain technology, whose experience has been essential in making this initiative more robust and workable.
“The project is a big step towards the adoption of a technology with immense transformative potential in asset management, starting out in a controlled and regulated environment that will enable BBVA AM to explore the benefits in a secure and scalable way,” explains Belén Blanco, CEO of BBVA Asset Management Europe.