Integration of crypto assets into investment funds

Initial situation

Based on the opportunities offered by the Fund Jurisdiction Act, the inclusion of crypto assets in an asset manager's investment process is to be investigated
The client's goal is to expand the investable universe to enable innovative investment opportunities for existing and new target groups
As crypto assets and the underlying blockchain technology introduce a range of new features, an initial assessment of their fundamental feasibility should be conducted
During the course of the project, foundational knowledge of blockchain technology will be developed to ensure employees are adequately trained and prepared for subsequent projects

Approach

Training of more than 150 employees on the basics of blockchain technology using workshop concepts developed together with the Frankfurt School Blockchain Center
Identification of and interviews with the affected departments along the entire value chain of the investment process
Derivation of possible functional and process-related adaptation requirements and affected systems
Analysis of the impact on existing systems, incl. their interactions with third parties (e.g., crypto trading venues, crypto custodians, depository)
Effort estimation for implementation of the use case, as well as the derivation of a recommendation for action

Results

In principle, the use case is feasible; the expected implementation costs have been determined
Correct mapping of the asset class crypto assets within existing systems
Criteria for the eligibility test for crypto assets defined
Adequate supply of master and market data for crypto assets ensured
Connection to crypto trading venues established, ensuring compliance with all relevant regulatory and technical requirements