Creating a Blockchain-based Marketplace for Streamlined Fund Management & Administration

Business Challenge

Our client aimed to develop a product that connects various fund market participants via a distributed ledger network. This network would hold digital representations of assets, cash, and transactions. Participants such as investors, distributors, fund managers, and service providers could share ownership and transaction information, minimizing intermediation layers. The objective was to bring both market-traded and principal-traded funds into the digital age, aligning with best practices in tokenization across all asset classes. The initial phase focused on implementing an investor onboarding module.

Coforge Solution

We developed a multi-phased platform, starting with the investor onboarding module. We created three distinct portals for Investors, Fund Administrators, and Fund Managers. The platform simplified and automated investor onboarding, offering key functionalities including:We developed a multi-phased platform, starting with the investor onboarding module. We created three distinct portals for Investors, Fund Administrators, and Fund Managers. The platform simplified and automated investor onboarding, offering key functionalities including:

• Retail and institutional investor onboarding.
• Risk rating for any investor type.
• Dynamic adaption of KYC and AML requirements per customer.
• Defining organization/team permissions for specific tasks.
• Enabling investors to search for funds based on their preferences (in subsequent phases).
• Allowing Fund Managers to search for investors based on fund characteristics and investor preferences, and send targeted invites.
• The application, deployed on Azure, is monitored and managed by our team.

Results

The platform serves as a marketplace that digitally connects investors to fund market participants. It reduces intermediation layers between investors and products, allowing shared information on ownership and transactions. Fund Managers can associate parameters with funds and invite investors who can apply through dynamic forms defined by the Fund Administrator. The risk rating framework aids Fund Managers and Administrators in reviewing each fund's risk based on investor profiles.

The product successfully brings market-traded and principal-traded funds into the digital age, aligns with best practices in tokenization, and simplifies fund distribution. It anticipates future interoperability and the potential for atomic settlement of fund transactions.

Key Highlights

The tokenization module is blockchain-based, emphasizing the product's commitment to digital transformation and secure operations.