Schroders explores capabilities of tokenised investment vehicle with Monetary Authority of Singapore

Schroders today announces a tokenised investment vehicle^[1] project to explore the capabilities for personalisation and simplification of investments that blockchain technology could deliver.

Schroders is participating in the Monetary Authority of Singapore’s Project Guardian, a ground-breaking initiative that aims to develop a responsible and innovative digital asset ecosystem by supporting global efforts in testing the feasibility of tokenised assets while managing risks to financial stability and integrity.

Schroders will leverage its expertise and collaborate with global funds network Calastone, to explore the capabilities of a tokenised vehicle  for Variable Capital Companies (VCCs) – a common fund structure in Singapore. It will potentially allow clients to improve the personalisation of their investment solutions, while the underlying blockchain technology could simplify day-to-day operational processing through increased automation and synchronised data.

The collaboration between Schroders and Calastone will also explore asset ownership linked to blockchain technology that could provide more cost-efficient investment allocation for retail and institutional investors.

The Monetary Authority of Singapore recently announced the expansion of Project Guardian to include a diverse group of financial institutions, reaffirming their commitment to driving innovation in the digital asset landscape.

Peter Hilborne, Chief Operating Officer, Operations, Schroders, commented: 

"We are in a transformative era where distributed ledger technology (DLT) will redefine finance with a positive impact on asset management. At Schroders, we understand the vital role tokenisation and digital assets may play in modern economic arrangements, and we are delighted to be working with the Monetary Authority of Singapore and Calastone to contribute to the advancement of the digital asset ecosystem. We look forward to collaborating with various industry players to bring this pioneering technology to market, ushering in an era of exciting possibilities.”

Marita McGinley, Head of Digital Assets Strategy, Schroders, commented:

“Tokenisation brings forth two fundamental advantages: synchronised data and heightened automation. Moreover, it expands accessibility and enables customisation, providing investors with more options. Managed in a responsible way, we think this is good for clients and for the market.”

Adam Belding, Chief Technology Officer, Calastone, said:

“Calastone has long pioneered the use of technology in asset management to reduce friction and create better outcomes for investors. We have been working on the use of DLT as an enabler for many years, and we are very excited to work with a visionary asset manager like Schroders to enable genuine transformation to the investment industry.”

The tokenised investment vehicle project reflects Schroders’ commitment in exploring a broad range of technologies to support the evolving digital assets landscape. Earlier in February 2023, Schroders participated in the first-ever GBP Digital Bond issued by the European Investment Bank, an important innovation for the development of digital asset solutions. And in August 2022, the firm announced its strategic minority stake in Forteus, an asset manager focused on blockchain and digital assets, to support its ongoing education and research in this sector.

^[1] Tokenised Investment Vehicle (TIV) offers the ability to wrap and issue traditional investment securities in an efficient, digital investment vehicle.