Schroders today announces it is launching a tokenised investment vehicle project to explore the capabilities for personalisation and simplification of investments that blockchain technology could deliver.
Schroders is working with the Monetary Authority of Singapore as part of Project Guardian, a ground-breaking initiative aimed at developing a responsible and innovative digital asset ecosystem that supports global efforts for secure and efficient digital asset transactions.
Schroders will leverage its expertise and collaborate with global funds network Calastone, to explore the capabilities of a tokenised vehicle for variable capital companies (VCCs) – a common fund structure in Singapore. It should allow clients to improve the personalisation of their investment solutions, while the underlying blockchain technology could simplify day-to-day operational processing through increased automation and synchronised data.
The collaboration between Schroders and Calastone will also explore asset ownership linked to blockchain technology that could improve personalisation of investment products and provide more cost-efficient investment allocation for retail and institutional investors, while simplifying day-to-day operational processing.
The Monetary Authority of Singapore recently announced the expansion of Project Guardian to include a diverse group of financial institutions, reaffirming their commitment to driving innovation in the digital asset landscape.
Marita McGinley, Head of Digital Assets Strategy, Schroders, commented: “We are in a transformative era where distributed ledger technology (DLT) will redefine finance with a positive impact on asset management. At Schroders, we understand the vital role of tokenisation and digital assets in modern investment strategies.”
“Tokenisation brings forth two fundamental advantages: synchronised data and heightened automation. Moreover, it expands accessibility and enables customisation, providing investors with more options. Managed in a responsible way, we think this is good for clients and for the market.”
Lily Choh, CEO, Schroders Singapore, commented: “We are delighted to be part of MAS’ Project Guardian, working with Calastone, to contribute to the advancement of the digital asset ecosystem in Singapore. As a regional innovation hub, we are driving this project from Singapore and look forward to collaborating with various industry players to bring this pioneering technology to market, ushering in an era of exciting possibilities.”
The tokenised investment vehicle project reflects Schroders’ commitment in exploring a broad range of technologies to support the evolving digital assets landscape. Earlier in February 2023, Schroders participated in the first-ever GBP Digital Bond issued by the European Investment Bank, an important innovation for the development of digital asset solutions, and in August 2022, the firm announced its strategic minority stake in Forteus, an asset manager focused on blockchain and digital assets, to support its ongoing education and research in this sector and to develop investment solutions for the benefit of its clients.
