Blockchain platform Iznes welcomes Rothschild & Co Asset Management as a shareholder

Iznes welcomes a new shareholder : Rothschild & Co Asset Management Europe. The manager takes a minority interest and reference its fonds on the blockchain platform from financial asset management

In early 2022, Rothschild Investment increased its exposure to Bitcoin and cryptocurrency through the Grayscale and Bitwise products. This time around asset management committed to the blockchain in Europe.

Rothschild & Co Asset Management Europe announced earlier this month its entry into the capital from the publisher Iznes. He proposes a blockchain platform the result of a capital-intensive partnership between fund management companies and asset owners.

Blockchain transforms fund distribution

Iznes allows, through the intermediary of a private blockchain networkto both parts of manage fund shares (MUTUAL FUNDS). Rothschild’s asset management arm joins the company as a minority shareholder via an equity investment.

This acquisition marks an important step in the digital transformation of fund distribution, and opens up new prospects for investors”, says the publisher, who claims to offer “a disruptive alternative to traditional distribution channels”.

The dematerializes subscription operationsallowing investors to subscribe directly “to all types of French, Luxembourg and Irish funds” with client asset managers.

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Transaction cost savings

This solution considerably facilitates the underwriting and redemption processes, offering an improved and more efficient customer experience,” says Iznes.

Generali, the company’s user and shareholder, also emphasized these advantages. At the beginning of 2022, Generali estimated that it had 1 billion euros in assets under management, with a total of 50 to 100 orders per day.

According to Rémi Cuinat, head of unit-linked assets at Generali France, these indicators are set to rise sharply over the course of the year to more than 5 billion euros in assets under management, with 400 to 500 orders per day.

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Rothschild & Co Asset Management Europe does not at this stage quantify its ambitions. A minority shareholder and now also a client, the management company is targeting a reduction in its transaction costs. Rothschild has begun the process of listing its funds on the platform.

Financial gains and operational efficiency for Generali

This partnership will enable us to simplify and improve our fund distribution process, while offering our customers an unprecedented level of security and efficiency,” says Managing Partner and CEO Pierre Baudard.

In an interview, the head of Generali France put the cost of an order at 4 euros. This price is justified by the fact that mutual fund-type asset management involves multiple intermediaries.

Via the blockchain and the savings generated, the company estimated that it would self-finance the project. The direct connection to funds via the platform also brings greater speed, where in the traditional system the bank requires a delay in taking orders into account, a “comfort cut-off”.

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