Attracta Mooney from the Financial Times estimates that asset managers could save $2.7 billion a year by streamlining the process of buying and selling funds over blockchain. While some of the largest asset managers, such as BlackRock and Vanguard, have experimented with blockchain to securitize funds via security token offerings (STOs), this is not a widespread practice. Most firms continue to rely on traditional back offices and asset servicers to transfer funds.
TransferNext seeks to disrupt the asset servicing and asset management sectors by offering a blockchain-based service to assist with the raise of capital and the transfer of funds between asset managers and their investors. In particular, TransferNext seeks to target alternative asset managers given their relative barriers to investment, such as strict regulations around investor profile, long lockup periods for invested funds, and high minimum investment amounts.
Amongst other benefits, leveraging blockchain for fund transfers has the potential to undercut prices of the traditional fundraising and fund transfer services currently in use across the industry. TransferNext plans to target smaller, more cost-sensitive funds to begin with, and to then scale up its range of services in order to target larger funds with more complex needs. Once we have enough of the industry using TransferNext services, we intend to expand the scope of the platform to provide a common forum for alternative asset managers and eligible investors where asset managers can broadcast their fundraising needs to the community, and investors can allocate capital.
New York, New York
transfernext.contact@gmail.com