Amundi, one of the largest asset managers in Europe, has issued a tokenized share class of its flagship euro cash fund, in an effort to bring more products onto distributed ledgers, the company announced on Thursday.
The Amundi Funds Cash EUR fund now trades in a hybrid setup. Investors can purchase the traditional share class with cash or hold a tokenized version on Ethereum . The first transaction was settled on Nov. 4, the statement said. Amundi developed the product in collaboration with CACEIS, a European asset-servicing firm that provides the digital wallets and the platform for handling subscriptions and redemptions.
Tokenization turns fund shares into blockchain-based records, which promises quicker settlement and a clearer audit trail. “The fund uses distributed ledger technology and the public Ethereum blockchain to ensure transparent record-keeping of fund units and traceability of transactions,” according to the statement.
The development adds to Europe’s early lead in regulated tokenized funds. Firms in Luxembourg, France, and Germany have issued blockchain-native fund units for years, thanks to rules that provide asset managers with clear guidance on how to hold and record digital shares.
CACEIS said that investors will be able to buy the fund through stablecoin or central bank digital currency (CBDC). “With the new hybrid Transfer Agent service, our clients can quickly and easily benefit from a new distribution channel via blockchain to their investors,” said CACEIS CEO Jean-Pierre Michalowski.
This is a decisive step towards achieving our goal of offering 24/7 subscription and redemption services for investment fund units payable in stable coins (EMT) or central bank digital currency when it becomes available,” he added.