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Alternatives blockchain project gets Wall Street backing

Blockchain chainA project to develop a blockchain-based platform for alternative assets has recruited a string of Wall Street names including global fund managers such as Apollo, UBS and BlackRock.

The consortium, which involves fintech iCapital, is looking to develop a model using distributed ledger technology (DLT) that creates a shared and auditable record for alternative assets.

This is intended to eliminate the need for multiple reconciliation processes and to improve visibility in the processing chain.

““We see the potential DLT has to significantly improve both efficiency and security across the alternatives industry,” said Jerry Pascucci, head of global alternative investment solutions at UBS Global Wealth Management.

Other members of the consortium include Blackstone, BNY Mellon, Carlyle, KKR, Morgan Stanley, State Street and WestCap. According to iCapital, more firms are expected to join the project in the coming weeks.

The mainly US-focused project is one of many around the world attempting to develop an industry standard around DLT for alternative assets.

For example, in recent weeks the US post-trade body Depositary Trust and Clearing Corporation (DTCC) has announced plans to launch a new platform that will apply tokenisation and blockchain to the use of private market securities.

And in Australia, the ASX is planning to develop a post-trade ‘golden record’ using blockchain technology.

In addition, many of the consortium members have interests in blockchain projects of their own. Carlyle owns the funds transaction network Calastone which launched its DLT-based Distributed Market Infrastructure in May 2019.

Meanwhile UBS Asset Management recently partnered with blockchain platform FundsDLT on a proof-of-concept using blockchain for funds distribution.

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