Today, the six and Banque Pictet & Cie SA announced the successful completion of a common pilot project, the abolition of corporate loans and the distribution of fractional quantities of these assets in portfolios managed by Pictet Asset Management SA.
This initiative demonstrates the possibility of tokenized Securities that will provide more flexible, effective and scalable tools to provide customized investment solutions to asset managers. This project paves the way for the broader adoption of digital infrastructure and acts as an important starting point for the mutual capital industry.
While mutual funds have long served investors, the emergence of digital mobile values introduces a fundamental upgrade, allowing investors to have more control over investment options with improved operational efficiency.
The pilot project focused on corporate European and CHF bonds, which were detained in six SISs to be transferred to the SDX platform. These were subsequently available to investors through the bank account of portfolio, allowing a level of portfolio adjustment, which could not easily be provided through traditional systems. A key benefit is that the solution can be used for all debts (both traditional and digital).
This pilot supports new operating models for the management of mutual funds, including more customized investment strategies and improved differentiation for smaller investment, supported by the automated fractional balancing of the portfolio. Tokenissation expands access to asset categories, such as corporate bonds, facilitating smaller investment sizes that attract a more varied range of investors.
David Newns, head of SDX, said:
“We are happy that our successful pilot project with Pictet has created a foundation for the integration of digital bonds into capital portfolios. This milestone marks the first successful fractionling of mobile values in regulated financial market services based on SDX.
Olivier Ginguené, Managing Director of Investment Service Multi Asset & Quantitative Investment at Pictet Asset Management, said:
“We are pleased to work with six in this pioneering work.
The collaboration between SDX and Pictet confirms that the assets in combination with fractionling can really provide benefits to the entire chain of capital management value, from business efficiency to enhanced results and investor experience.