iCapital has incorporated blockchain technology for controlling a private fund that is allocated by UBS Wealth Management, the administration in the hands of Gen II. The company’s distributed ledger technology (DLT) will be responsible for the fund’s longevity, involving subscriptions, as well as reports and other factors.
Jason Broder, the Managing Director and Chief Product Officer of iCapital, has successfully implemented blockchain technology after two years of struggle. The DLT network is prepared to take in every fund. According to his observations, the industry is appreciating its potential in terms of addressing the roadblocks pertaining to private investments.
He emphasized that accepting a distributed ledger is a step toward the growth of the investment ecosystem. It is able to set up a uniform data framework, a solution for the ineffectiveness related to operations.
The company’s expectations lie in the fact that the DLT execution will help in narrowing down the procedures pertaining to financial consultants, as well as fund controllers, through the initiation of data exchange and processing of transactions.
The idea of linking up with UBS Wealth Management for the introduction of blockchain is based on their previous relationship with the company.
According to the Co-Head of Global Alternative Investment Solutions at UBS, Jerry Pascucci, the blockchain integration was indeed an important step for improving effectiveness as well as data standards in fund control.
Opto Investments shared its apprehensions about the technology’s effectiveness when applied to private markets. In late 2021, CAIS, another participant in the alternative investment sector, declared its intention to investigate blockchain applications.
For iCapital, this is a major step toward improving running effectiveness and data standards involving the control of private funds.
