Amundi launches $100M tokenized fund on Ethereum and Stellar, offering instant settlement, stable yield, and 24/7 transfers for institutional investors worldwide.
Europe’s largest asset manager Amundi launched a new tokenized fund using blockchain technology. The fund runs on the Ethereum and Stellar networks. The company confirmed approximately $100 million of committed assets. The launch demonstrates rising interest in tokenized finance amongst big institutions.
Amundi Launches Tokenized Fund for Treasury and Cash Management
The new product is known as Spiko Amundi Overnight Swap Fund or SAFO. The fund is organised in the form of SPIKO SICAV regulated by French law. The creation of treasury and collateral requirements of companies and financial institutions is the focus of the design.
Amundi has around $2.3 trillion in assets worldwide. This means the firm is the largest asset manager in Europe. The new launch is its second blockchain-based fund in five months. Earlier, the company hatched a tokenized money market share in Ethereum.
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SAFO is similar to an investment product with a cash equivalent. Investors may redeem fund shares on demand. Because of the use of blockchain, transfers can occur 24 hours a day. This feature makes the fund different from traditional cash products.
The fund is based on totally collateralized total return swaps with major banks. These swaps are intended to provide stable returns above risk-free returns. At the same time, the structure maintains overnight liquidity for the investors. This enables the need for fast access to funds when required.
Investors can join the fund using four currencies. These include EUR, USD, GBP, and CHF. The minimum investment can begin from only 1 unit of these currencies. This makes the product flexible to many types of investors.
Blockchain Technology Brings Faster Settlement and Transparency
Blockchain technology enables a near-instant settlement of the share of funds. Investors are free to select a different custody. The shareholder register is directly recorded on Ethereum and Stellar. This provides real-time visibility of ownership.
The system also provides programmatic access via smart contracts and API tools. Because of this, institutions are able to link the fund with their own systems. This feature may facilitate the large firms to manage liquidity more easily.
CACEIS serves as the depositary bank and administrator of funds for the product. Spiko is a transfer agent, tokenization platform and broker. Chainlink offers technology to record the net asset value of the fund in blockchain.
Currently, eligible investors have access to the fund through Spiko. The company intends to develop its distribution via the use of API network. This may enable more institutions to be able to utilize tokenized cash products.
Jean-Jacques Barbéris from Amundi said there is fast and transparent access to cash management via the fund. “Tokenized solutions are becoming important in the finance.” The launch indicates that conventional asset managers are leaning towards blockchain systems.
This launch indicates that large asset managers are accelerating their pace of movement into blockchain finance. Tokenized funds can provide increased speed, transparency, and global access for investors. As more institutions test these systems, tokenization may be common in traditional markets.
