Revolutionizing Fund Management: CACEIS Pioneers Blockchain-Based Custody for Tokenized Financial Instruments

In a groundbreaking move, CACEIS has enabled its clients to subscribe to the first French UCITS money-market funds with units natively issued and delivered on Ethereum's public blockchain. This milestone marks the launch of CACEIS' new custody architecture for tokenized financial instruments and crypto-assets, paving the way for a transformative shift in the distribution and custody landscape of the European investment industry.

Unlocking the Future of Tokenized Fund Investments

Pioneering Blockchain-Based Fund Unit Tokenization

Spiko, a trailblazing French fintech known for its blockchain-based fund unit tokenization solution, and Twenty First Capital, the manager of the Spiko SICAV, have entrusted CACEIS to act as the depositary and custodian of their tokenized money-market funds. CACEIS, as the custodian, provides secure wallets to clients, enabling the custody of investors' units on the blockchain. This groundbreaking tokenization of a retail money-market fund with units issued on a public blockchain is the first of its kind in Europe, signaling a paradigm shift in the way fund shares are distributed and custodied.

Enhancing Security and Transparency with Blockchain Technology

The integration of blockchain technology into the custody and distribution of fund units offers a host of benefits. By leveraging the inherent security and transparency of the Ethereum public blockchain, CACEIS' new custody architecture ensures the integrity and traceability of fund unit transactions, providing investors with an unprecedented level of confidence in the safekeeping of their assets. This market-leading initiative marks a significant milestone in the development of tokenized funds, paving the way for a more efficient and secure investment landscape.

Unlocking New Possibilities for Investors

Future developments in this innovative framework will enable investors to pay for subscriptions and receive redemption proceeds directly on the blockchain, seamlessly integrating stablecoins, tokenized deposits, and even central bank-issued digital currencies. This integration of blockchain-based payment solutions will further streamline the investment process, reducing friction and enhancing the overall investor experience.

Driving Transformation in the Investment Industry

Paul-Adrien Hyppolite, the co-founder and CEO of Spiko, expressed his enthusiasm for this groundbreaking collaboration, stating, "With CACEIS' offer, we now bring investors a cutting-edge technology solution for custody of shares in the first tokenized money-market UCITS on Ethereum's public blockchain. This market-leading initiative marks a turning point in the development of tokenized funds."

Embracing the Digital Asset Revolution

Laurent Majchrzak, the Group Head of Digital Assets at CACEIS, echoed the significance of this milestone, "These first transactions validate CACEIS' choice of technology architecture and the robustness of our digital asset custody service. Clients are now able to invest in digital assets with the same level of security and reliability as enjoyed by traditional assets. We are doing everything we can to support clients during the initial stages of working with the blockchain."This pioneering collaboration between CACEIS, Spiko, and Twenty First Capital represents a transformative step in the investment industry, paving the way for a future where tokenized financial instruments and crypto-assets seamlessly integrate with traditional investment frameworks. As the industry embraces the digital asset revolution, this landmark achievement sets the stage for a more efficient, secure, and accessible investment landscape, empowering investors and driving the evolution of the financial ecosystem.