Marketnode launches industry-wide investment funds utility Fundnode to improve fund settlement efficiency, adds key participants in pilot phase
Further to Singapore Funds Industry Group’s (SFIG) announcement on Fundnode dated 31-Aug-2022, Marketnode, presents details of Fundnode, an industry-wide investment funds utility built using distributed ledger technology (DLT)
Fundnode will begin by streamlining fund processes, facilitating simplified subscription, redemption, and record-keeping workflows for funds offered to retail investors (Authorised Collective Investment Schemes)
Pilot phase participants of Fundnode will include fund distributors (DBS, OCBC Bank, Phillip Securities, Navigator Investments, UOB Kay Hian and UOB), fund managers (abrdn, Fullerton Fund Management, Mandiri Investment, Schroders Investment Management and UOB Asset Management), transfer agents and service providers (Apex Group, Citi, Deutsche Bank, FNZ, HSBC and State Street), and CPF agent banks.
Set to be operational in 2023, Fundnode’s pilot phase will provide market participants with a single platform for transaction management, funds processing, and record-keeping. Fundnode will eliminate manual steps, facilitate reconciliation of flows, and centralise processing. Fundnode will subsequently expand coverage to other fund types, enable support for corporate actions, ESG labelling and international platform integrations.
Gillian Tan, Assistant Managing Director (Development and International), MAS and co-chair of the SFIG Executive Committee said, “The use of distributed ledger technology (DLT) has the potential to bring about increased efficiencies and enhanced productivity in the financial sector. We are glad to see the asset management industry working closely with Marketnode to jointly conceptualise a fund settlement utility to streamline post-trade settlement processes. Through this project, we hope the industry will benefit from swifter settlement times and lower transaction costs which will ultimately benefit end-investors.”
Susan Soh, Chair of Investment Management Association of Singapore (IMAS) and Head of Asia Pacific for Schroders, said, “The launch of Fundnode is a positive development that will greatly benefit the fund industry in Singapore. By leveraging the power of technology advancements, the utility will address and provide solutions to improve financial asset processing such as client onboarding and back-office operations for asset managers. We are pleased to be part of an industry-wide effort to develop one of Asia’s leading DLT-enabled fund processing utility, which will transform the funds ecosystem in the coming years.”
Pradyumna Agrawal, Managing Director, Investment (Blockchain), Temasek added, “The innovation of our funds processing infrastructure is necessary to support and scale the growth we’re seeing. The development of Fundnode, with involvement from the industry, is an important milestone; it paves the way for the adoption of a single, integrated platform that will ease processes for greater efficiencies. We look forward to the collaboration of more ecosystem partners to drive this initiative ahead.”
Martin Pickrodt, CEO of Marketnode, said, “We are excited to take our partnership with MAS and the broader financial ecosystem to new heights. As we begin operationalising this new paradigm of funds settlement, we hope that Fundnode will further strengthen Singapore’s position as an international centre for the fund management industry and inspire other technology-driven innovations.”
For more information: Fundnode micro-site