Integration of crypto assets into investment funds
Tier 1 asset manager
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
- Since crypto assets and the underlying blockchain technology bring a variety of new features with them, the basic feasibility should first be examined
- In the course of the project, basic know-how on the topic of blockchain technology is to be built up so that employees are also appropriately trained for follow-up 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 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, also in interaction 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 ensured, considering the relevant requirements
