FNZ goes live with blockchain-based fund admin system

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Wealth management platform FNZ has begun the roll out of ChainClear, its blockchain-based fund trading and settlement system, to the South African funds market.

The product – which is being deployed in partnership with industry-owned utility FinSwitch – is buiilt to support the entire South African fund management industry and streamline fund operations across trading, settlement and reconciliation activities.

The ledger replaces slow, file-based batch processing of fund administration activities, with a single real-time platform. Using ChainClear, multiple copies of fund ownership records held by each industry participant and manually synchronised are instead securely federated across all parties.

The distributed ledger is currently processing hundreds of thousands of trades and other transactions on behalf of 140 South African financial institutions every week, in a parallel processing phase alongside the existing system.

Jack White, head of FNZ ChainClear proposition, states: “Blockchain and distributed ledger technologies provide us with a huge opportunity to make the process of fund administration and distribution more efficient and cost-effective for all participants. This marks a significant milestone in the development of FNZ ChainClear and demonstrates that we are taking that opportunity, as we seek to deploy the solution more widely across the markets in which we operate.”