[WATCH] The impact of Tokenized Funds with Brian McNulty at AIBC Europe

As the founder and CEO of Fundadminchain (FAC), McNulty is one of the main players when it comes to the tokenization of funding via the Blockchain and how it could rationalize one of the most vital lifelines of the global economy

With the Blockchain set to disrupt several economic sectors in ways unseen since the the rise of the internet, McNulty explains how the funding sector had the potential to be completely overhauled via the proliferation of DLT based technology. Spearheading the rise of tokenized funds, he begins by defining what exactly he meant by tokenization and why its potential could not be understated.

It gives us the opportunity to dematerialize the asset and also associate some features with the asset that we can actually than share on a [Distributed Ledger.] So by DLT, we’re leveraging the Blockchain so it would get the mutability and data security [that would come as part of the technology.]

When it comes to the benefits this could provide, McNulty pointed out that such a technological innovation would allow for the transfer and sharing of information to be done much easier and more efficiently then if conducted through more traditional methods. While noting how the technology had the potential to disrupt value chains in any industry, he was focusing on the value it could add to the funding sector because of the idiosyncrasies of that economic area and how it could capitalize on these to further enhance productivity across the board.

During the last 30 to 40 years, the funds industry has built up layer upon layer of very important parties moving data around. These include, fund managers, distributors, brokers, exchanges, FMIs, transfer agents, custodians etc who are all sharing and storing the same records of data time and time again. That means that there are lots of reconciliations, lots of lags in the data and lots of risks and mistakes. So we come along, we tokenize the fund, we tokenize the cash and we put that on a network.

“The net experience and net floors go up because the end investors have a better product. “

Old game, new players:

He then pointed out that, while the process of tokenizing networks was no easy feat in of itself, the main difficulty encountered in this area in not technical but rather cultural. The inertial within the sector towards change and reform has lead it to ossify with respect to emerging technologies in comparison to other sectors such as gaming. This being said, he has seen progress being made on this front.

We’ve now got 20 global fund managers working with us. We’ve got FAC that is currently in the pilot where we’re launching tokenized funds. Then how do you get the others to come on? You want to show them that this is an opportunity for change. We want to tell the transfer agents and distributors that “we’re not going to come after your profits, we’ll actually take away some of the inefficiencies in your organization.”

Being backed by Blockchain experts, DLT experts and funds experts, the team behind FAC is well equipped to bridge the gap between the three. With ambitions to expand into the US market as well as in gaining another cohort of fund managers on board, the venture has much to look forward to in this new era of decentralized finance.

AIBC returns to the United Arab Emirates:

Drawing the leading figures of the emerging tech world to the Middle Eastern metropoles for cutting edge technology, the 2022 AIBC UAE expo plans to unite the policy-makers, developers, C-suite executives, and legal experts of the burgeoning AI and Blockchain sectors. Through three days of educational panels, inspiring keynote speeches, workshops, and networking events, the expo seeks to create the foundation that the Industrial Revolution 4.0 can be built upon. Join us from the 20th to 23rd March 2022, in UAE.