CAIS, the alternative investment platform, and Digital Asset, the creators of the Daml multi-party application platform, have confirmed a working collaboration to “explore specific use cases for blockchain, distributed ledgers, and smart contracts at the intersection of wealth management and alternative investments.”
The two firms will work closely on experimental applications that address workflow inefficiencies, while “creating operational benefits for financial advisors and their clients.”
Matt Brown, Founder and CEO of CAIS, stated:
“By jumping beyond automation and into distributed ledger technology, CAIS is making a calculated bet on the future of the industry. This alliance with Digital Asset furthers our mission to improve every aspect of the wealth manager’s experience. We are attuned to their challenges and frustrations and believe the time has come to find a better way. It is no longer about making processes electronic or automated; it is about eliminating them altogether.”
As mentioned in the update, use case examples include faster investor authentication, the “elimination of subscription documents, and the resolution of liquidity needs for funds and products.”
Additionally, CAIS is “exploring the potential for blockchain in education certification, which it believes is essential to democratizing access to private funds.” All use cases are applicable across alternative strategies, “including private equity, venture capital, real estate, real assets, and private debt.”
The announcement also mentioned that despite the operational inefficiencies limiting access to alternative products, capital allocation to alternative investment strategies has “grown steadily in recent years.”
The update further noted that aggregated annual inflows to the private markets have surpassed $1 trillion in each of the last three years, according to Preqin Pro. By streamlining wealth management systems, while lowering overall costs and widening exposure, blockchain tech can help financial professionals “redirect more resources towards client relationships and investment advice.”
Yuval Rooz, Co-Founder and CEO of Digital Asset, remarked:
“We believe the time is right to team with CAIS and bring blockchain technology to the historic, systematic problems at the nexus between wealth management and alternative investments. By lowering the burden of administration, we can improve product transparency and affordability for retail capital seeking new and diversified portfolio opportunities.”
