Azimut: the first tokenization on the blockchain
Azimut Group, through its subsidiaries Azimut Investments SA, Allfunds Blockchain and BNP Paribas Securities Services, has successfully completed the first phase of a joint blockchain initiative.
The initiative involved the tokenization of part of the Luxembourg-domiciled fund AZ RAIF I – Absolute Non-Performing Assets, one of the group’s private debt strategies.
Azimut Group’s important initiative in the blockchain world
This is a significant commitment for the Azimut Group, as the success of the initiative demonstrates the company’s commitment to innovation and its ability to leverage technology to improve its offerings.
By tokenizing a share of the fund, the Azimut Group has made it possible for investors to own fractional shares of the fund through blockchain technology.
This not only increases the fund’s liquidity, but also makes it more accessible to a wider range of investors.
The “AZ RAIF I – Absolute Non-Performing Assets” fund focuses on a diversified portfolio of securities (ABS) with underlying values that allow various exposures to non-performing assets, including bank-originated NPLs and loans arising from insolvency proceedings.
Non-performing assets are those that do not generate income or are not currently capable of generating income. Such assets may include bad loans, non-performing bonds and other non-performing securities.
The use of blockchain technology in fund tokenization provides several benefits for investors. First, it enables the creation of digital assets that can be easily transferred, traded and monitored in real time.
This means that investors can quickly and easily buy and sell their share in the fund, which increases the liquidity of the asset.
Second, the use of blockchain technology ensures that the ownership of the asset is transparent and immutable. Each token represents a share in the fund, and ownership is recorded on the blockchain. This means that investors can rest assured that their ownership is secure and cannot be tampered with.
In addition, the use of blockchain technology also reduces the cost and complexity of the traditional investment process. The traditional investment process may involve several intermediaries, each charging their own fees.
The use of blockchain technology eliminates the need for intermediaries, reduces fees and streamlines the investment process.
The success of the initiative is due to the good cooperation between the three companies
The success of this joint initiative is a testament to the collaboration of Azimut Group, Allfunds Blockchain and BNP Paribas Securities Services.
All three companies brought unique expertise and capabilities to the project, which made the successful tokenization of the fund possible and brought the benefits of blockchain technology to investors.
Allfunds Blockchain is a joint venture between Allfunds, the world’s largest fund distribution platform, and ConsenSys, a global blockchain technology company.
The company’s mission is to offer blockchain-based solutions to the financial industry, with a focus on asset management.
BNP Paribas Securities Services is a leading global custody and services company offering a range of services to institutional investors, asset managers and financial intermediaries.
The company has a strong track record of innovation and is actively exploring the use of blockchain technology in the financial sector.
Azimut Group is a leading independent asset manager with a global presence. The company offers a range of investment solutions to individual and institutional investors, including mutual funds, alternative investments and wealth management services.
The success of this initiative also marks an important step towards wider adoption of blockchain technology in the financial services industry. While the use of blockchain technology in the financial sector is still in its early stages, it has the potential to transform the industry in a number of ways.
One of the main advantages of blockchain technology is its ability to increase transparency and reduce the risk of fraud.
By recording transactions on a decentralized ledger, blockchain technology provides a transparent and immutable overview of all transactions. This makes it much more difficult for fraudsters to manipulate or change data, improving the security and integrity of the financial system.
As the financial services industry continues to evolve, we can expect to see more innovative uses of blockchain technology.
The successful tokenization of the “AZ RAIF I – Absolute Non-Performing Assets” fund by Azimut Group is just one example of how blockchain technology can be used to improve the financial sector.
Blockchain technology has the potential to transform the financial sector in ways we are only beginning to imagine.
