Apex claims blockchain first

Apex claims blockchain first Investor services firm Apex Group claims to have become the first transfer agent and fund service provider to administer regulated securities using the blockchain as the investment book of record.

The transaction involved UK-based hedge fund and private markets investor Hamilton Lane and Swiss digital assets specialist Sygnum Bank.

Together, the three entities created a new digital asset share class of the Hamilton Lane GPA fund and a DLT registry to automate the various fund administration tasks as well as the distribution.

Apex stated that it intends to “increasingly utilise this operating model for all of its asset management clientele” adding that it will enable them to sell more of their product.

Blockchain and tokenisation have often been linked with the administration and distribution of private market funds.

One reason for this link is the fact that the transaction and administration process is still heavily manual in comparison to other sectors in the investment market.

It is also thought that tokenisation will not only make this market more efficient but it will also make it more accessible to a wider range of investors due to developments like fractional shares.

“This is a game-changer for Apex Group, and the industry as a whole,” said Apex Group chief executive Peter Hughes.

“We are focused on disrupting traditional practices in order to drive positive change throughout the financial services sector and this is an example of optimising technology for industry advancement.”

©2024 fundsTech