As tokenized assets and distributed ledger technology (DLT) reshape investment markets globally, Fundserv is navigating the evolving landscape and what it means for our members. We’re engaging with regulators and testing the technology, preparing a trusted path forward for Canada’s investment industry.
Building on our experience defining and maintaining common standards, we are developing a tokenized trading platform parallel to Fundserv’s Transaction Forwarding System (TFS). The platform will allow us to explore how this technology can support a secure, efficient and connected digital ecosystem, while avoiding fragmentation.
Building and validating
Fundserv has built its first test version of a tokenized trading platform for funds, demonstrating how blockchain-based trading technology can support the full fund lifecycle for investment funds, while aligning with current regulatory frameworks. We continue to engage with regulators to keep our work closely aligned with momentum in this space so we’re well prepared to support members effectively at the right time.
Work has begun on the second version of our tokenized trading platform with a focus on how to:
- Enable a fund manufacturer, through its transfer agent, to set up a fund and smart contract.
- Enable a CIRO-regulated dealer to custody a wallet, open an account and transact on the Fundserv DLT platform.
- Identify regulatory considerations, requirements and potential barriers through iterative engagement with regulators and other stakeholders.
We’re committed to building a platform that delivers the most seamless experience possible for members, with regulatory compliance a fundamental building block.
In the coming months, Fundserv will convene an industry group to help guide the platform’s continued development and ensure it reflects the needs of Canada’s investment industry.
As the landscape continues to evolve, collaboration will be key to shaping a trusted path forward. Tell us what your organization is thinking, what it needs and how Fundserv can help.
Contact tokenization@fundserv.com to share your perspective, ask questions and help shape what comes next.