SETL’s Blockchain-based Investment Funds Platform Processes its First Real-world Transactions

Fintechist SETL Blockchain IZNES

It has been a while since we last heard of the SETL project. This blockchain-based settlement system for the investment funds industry is of great importance. It seems the platform is now officially open to the public. Their pan-European funds record keeping platform IZNES has also processed its first transactions. Things are finally coming together for this ambitious project, by the look of things.

In 2017, SETL launched the IZNES platform in partnership with four French asset managers. The goal was to trial this technology and enter full production mode in early 2018. One of the four asset managers has successfully sued the system for actual transactions. Although still a limited test, a select number of clients go to experience this blockchain-based platform. It is a big step forward for both SETL and IZNES. Bringing blockchain to the investment funds industry will yield some interesting results.

A big Step Forward for the SETL Team

More specifically, this industry doesn’t have the best of reputations when it comes to post-trade processes. Right now, these procedures are convoluted due to the high amount of intermediaries involved. With a blockchain, all of those middlemen are cut out entirely. Moreover, this new platform should help reduce overall costs as well. Only time will tell if that can be the case, though.

SETL France CEO Pierre Davoust is quite pleased with the progress. In his opinion, the IZNES concept can be deployed with minimal impact on other business processes and logic. That is a positive sign, although it’s no guarantee of success. After all, it’s up to individual service providers to work with this distributed ledger or not. Once more entities see the benefits of this technology, things will evolve at an accelerated pace.

Once the project is fully operational, it can become the largest permissioned blockchain in the world today. Many people remain on the fence as to whether or not such ledgers have any added value. SETL is confident this is the right way to go, especially in this specific industry. It remains to be seen how the rest of the industry will respond to the concept of disintermediation. The future of the investment funds industry certainly looks a lot more interesting

Header image courtesy of Shutterstock