Azimut Group, through its subsidiaries Azimut Investments S.A., Allfunds Blockchain and BNP Paribas Securities Services, has successfully completed the first phase of a joint blockchain initiative.
The initiative involved the tokenization of a portion of the Luxembourg-domiciled fund AZ RAIF I – Absolute Non-Performing Assets, one of the Group’s private debt strategies.
Summary
Azimut Group’s important initiative in the blockchain world
This is a significant undertaking for the Azimut Group, as the success of the initiative demonstrates the company’s commitment to innovation and its ability to leverage technology to enhance its offerings.
By tokenizing a share of the fund, the Azimut Group has enabled investors to hold fractional ownership of the fund through blockchain technology.
This not only increases the fund’s liquidity, but also makes it more accessible to a wider range of investors.
The “AZ RAIF I – Absolute Non-Performing Assets” fund focuses on a diversified portfolio of asset-backed securities (ABS) with underlyings that allow various exposures to non-performing assets, including bank-originated NPLs and loans arising from insolvency proceedings.
Non-performing assets are those that do not generate income or are unable to generate income at the moment. Such assets may include bad loans, non-performing bonds and other non-performing securities.
The use of blockchain technology in fund tokenization brings several advantages to investors. First, it enables the creation of digital assets that can be easily transferred, traded and monitored in real time.
This means that investors can quickly and easily buy and sell their fractional stake in the fund, increasing the liquidity of the asset.
Second, the use of blockchain technology ensures that the ownership of the asset is transparent and immutable. Each token represents a share in the fund, and ownership is recorded on the blockchain. This means that investors can be assured that their ownership is secure and cannot be tampered with.
In addition, the use of blockchain technology also reduces the cost and complexity of the traditional investment process. The traditional investment process may involve several intermediaries, each charging their own fees.
The use of blockchain technology eliminates the need for intermediaries, reducing fees and streamlining the investment process.
The success of the initiative is due to the great collaboration of the three companies
The success of this joint initiative is a testament to the collaborative efforts of Azimut Group, Allfunds Blockchain, and BNP Paribas Securities Services.
All three companies brought unique expertise and capabilities to the project, making the successful tokenization of the fund possible and bringing the benefits of blockchain technology to investors.
Allfunds Blockchain is a joint venture between Allfunds, the world’s largest fund distribution platform, and ConsenSys, a global blockchain technology company.
The company’s mission is to provide blockchain-based solutions to the financial industry, with a focus on asset management.
BNP Paribas Securities Services is a leading global asset custody and servicing company, offering a range of services to institutional investors, asset managers and financial intermediaries.
The company has a strong track record of innovation and is actively exploring the use of blockchain technology in the financial sector.
Azimut Group is a leading independent asset manager with a global presence. The company offers a range of investment solutions to individual and institutional investors, including mutual funds, alternative investments and wealth management services.
The success of this initiative also marks an important step toward wider adoption of blockchain technology in the financial industry. While the use of blockchain technology in the financial sector is still in its early stages, it has the potential to transform the industry in a number of ways.
One of the main benefits of blockchain technology is its ability to increase transparency and reduce the risk of fraud.
By recording transactions on a decentralized ledger, blockchain technology provides a transparent and immutable record of all transactions. This makes it much more difficult for fraudsters to manipulate or alter data, improving the security and integrity of the financial system.
As the financial industry continues to evolve, we can expect to see more innovative uses of blockchain technology.
The successful tokenization of the “AZ RAIF I – Absolute Non-Performing Assets” fund by the Azimut Group is just one example of how blockchain technology can be used to improve the financial sector.
Blockchain technology has the potential to transform the financial sector in ways we are only beginning to imagine.
