BBVA Asset Management is exploring the integration of blockchain technology into a “tokenized” investment fund.
The bank has registered its short-term fixed-income fund with the Spanish National Securities Market Commission’s sandbox for a pilot project. The fund, named BBVA Token Renta Fija Corto Plazo, will have its units registered and stored on a private blockchain network. BBVA Asset Management serves as the fund manager and promoter, utilizing the Allfunds Blockchain network for processing orders through smart contracts and nodes.
For investors, engaging with the fund will mirror the experience of traditional offerings, with the primary distinction being that subscription and redemption orders will be managed and recorded through blockchain technology. As this is a pilot initiative, the fund is not open for public trading and is currently available only to employees of the fund manager.
“The project is a significant step towards adopting a technology with immense transformative potential in asset management, as we begin in a controlled and regulated environment that allows BBVA AM to explore its benefits in a secure and scalable manner,” says Belén Blanco, CEO of BBVA Asset Management Europe.