Founder and Managing Partner of The Redsand Group, Nicole Anderson, recently announced an exciting initiative during her conversation with Finextra TV. The group is set to launch a fund designed to collaborate with the venture community to promote fintech solutions that address sustainability challenges within financial services, leveraging technologies like blockchain and tokenization.
In light of the ongoing transformation towards greener practices, Anderson highlighted Redsand’s role as an incubator. The firm has focused on nurturing businesses that respond to specific mandates from corporate clients, predominantly financial institutions. This work helps organizations identify potential blind spots and overcome challenges related to sustainability objectives.
Throughout 2020, Redsand plans to shift its attention to addressing critical issues within the insurance, reinsurance, and capital markets sectors. By developing ventures and assisting companies in utilizing available technologies, the goal is to enhance their sustainability performance.
A notable example of Redsand’s efforts can be seen in a recent project within the Scandinavian real estate market, where blockchain technology was employed to streamline fundraising processes, significantly boosting efficiency. The initiative aims to democratize property investments, offering individuals, consumers, and retail investors a similar experience to that of institutional brokers. As Anderson explains, the focus on tokenization, liquidity, and reducing costs within this traditionally opaque asset class was central to their approach.
Additionally, in the real estate and construction sectors, Redsand explored blockchain’s application for tokenizing the supply chain. This advancement has resulted in enhanced transparency regarding capital deployment throughout the supply chain.
With a dedicated focus on green initiatives, Redsand equips stakeholders—including investors, regulators, and corporate partners—with clear insights into supply chain operations and areas needing improvement. Anderson notes that investors often experience a revelation, realizing that the asset class not only becomes more liquid but that their investments can be traced to genuinely sustainable ventures.
While the potential for tokenization to facilitate asset class division and fluidity is widely acknowledged, Anderson emphasizes the importance of contemplating the future trajectory of digital assets. The tools developed by The Redsand Group represent a significant evolution within financial services. The introduction of practical solutions for enhancing transparency and quantifying data marks a departure from previous practices that allowed for a lack of accountability.
Anderson’s background in South Africa fuels her commitment to addressing financial inclusion, a core motivation behind the establishment of Redsand. The firm’s mission has evolved from a focus on social impact ventures to encompass more sophisticated, globally relevant opportunities. The interplay between the environmental implications of new enterprises and the responsibility of finance in supporting sustainable ventures presents a critical opportunity for innovation.
Anderson concludes that sectors traditionally resistant to change—such as capital markets, asset management, and insurance—now face unprecedented opportunities and challenges.
Looking ahead, Finextra Research and ResponsibleRisk are set to spotlight sustainable finance in investment and asset management during the second SustainableFinance.Live Co-Creation Workshop in March 2020. Interested parties are encouraged to register for the event, which will delve into the growing demand for sustainability, the hurdles facing sustainable investment, and how organizations across financial services and technology can contribute to achieving the UN’s Sustainable Development Goals by 2030.