Key Takeaways
- • BBVA Asset Management has launched BBVA Token Renta Fija Corto Plazo, a fund whose units are registered and stored on a private blockchain, through the CNMV regulatory sandbox.
- • The fund runs on the Allfunds Blockchain network, which handles registration of units along with the smart contracts and nodes used to process subscription and redemption orders.
- • As a pilot, the fund is open only to employees of the fund manager and is not available for trading to external investors.
- • BBVA AM Europe CEO Belén Blanco described the project as a big step toward adopting blockchain in asset management, begun in a controlled and regulated environment.
Summary
BBVA Asset Management has launched a tokenized investment fund under the regulatory sandbox of Spain's National Securities Market Commission (CNMV). The sandbox is a mechanism that permits controlled, limited testing under the supervision of competent authorities, including the CNMV, the Bank of Spain and the Directorate General of Insurance and Pension Funds, to assess the viability of new business models or new technologies in financial services.
The vehicle, BBVA Token Renta Fija Corto Plazo, is a short-term fixed income fund whose units will be registered and stored on a private blockchain, specifically the Allfunds Blockchain network. BBVA Asset Management acts as both fund manager and promoter, and relies solely on the network, its smart contracts and its nodes to process investor orders.
For unitholders, the experience is intended to mirror that of a traditional fund. Subscription and redemption orders are managed and recorded via blockchain, but BBVA states that this does not alter the investor experience.
As a pilot project, the fund is not open for trading and is available only to employees of the fund manager. This structure allows BBVA AM to explore the use of blockchain technology for asset management purposes in a contained setting.
The initiative was made possible by BBVA AM working alongside other BBVA Group teams, particularly those focused on digital assets and blockchain technology. Belén Blanco, CEO of BBVA Asset Management Europe, said the project is "a big step towards the adoption of a technology with immense transformative potential in asset management," starting in a controlled and regulated environment that will allow the firm to explore its benefits "in a secure and scalable way."
The vehicle, BBVA Token Renta Fija Corto Plazo, is a short-term fixed income fund whose units will be registered and stored on a private blockchain, specifically the Allfunds Blockchain network. BBVA Asset Management acts as both fund manager and promoter, and relies solely on the network, its smart contracts and its nodes to process investor orders.
For unitholders, the experience is intended to mirror that of a traditional fund. Subscription and redemption orders are managed and recorded via blockchain, but BBVA states that this does not alter the investor experience.
As a pilot project, the fund is not open for trading and is available only to employees of the fund manager. This structure allows BBVA AM to explore the use of blockchain technology for asset management purposes in a contained setting.
The initiative was made possible by BBVA AM working alongside other BBVA Group teams, particularly those focused on digital assets and blockchain technology. Belén Blanco, CEO of BBVA Asset Management Europe, said the project is "a big step towards the adoption of a technology with immense transformative potential in asset management," starting in a controlled and regulated environment that will allow the firm to explore its benefits "in a secure and scalable way."
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