Allfunds and Renta 4 join forces in Spanish Regulatory Sandbox project for the Tokenization and Custody of Investment Funds
The three supervisory bodies involved in the Spanish ‘sandbox’ – Spanish Central, CNMV, and the Directorate General of Insurance and Pension Funds (DGS) – have pubpshed today the pst of projects selected for the first round of its “Sandbox project”.
The project led by Onyze, Renta 4, Allfunds, through its company Allfunds Blockchain, and IoBuilders on tokenisation and custody of investment funds has been selected by Spanish regulators as one of the financial innovation projects in the first round of the Sandbox.
The Sandbox project seeks to combine emerging technologies with innovative business models that offer new ways of customer-business relationships.
Madrid, 14 May 2021 - The regulatory Sandbox has been a historic development in Spain since it was passed by Congress on September 17, 2020. After half a year of preparations, and the evaluation of 67 projects of financial innovation, the proposals that will form the first cohort of projects of the regulatory Sandbox in Spain have finally been disclosed.
Among the projects included in the final selection is the project led by Renta 4, Onyze, Allfunds Blockchain and IoBuilders, called “Issuance and Custody of Tokenised Investment Fund Shares”. This project is driven by the application of blockchain technology in the issuance, management, and distribution of investment funds, which are digitally tokenised to simplify their commercialisation amongst investors.
In this respect, each of the project's sponsoring companies contributes a critical part to its development. Allfunds Blockchain will provide the technology and blockchain network necessary for the tokenisation and the running of the investment funds, through its smart contracts solution. In turn, Renta 4 Banco will be responsible for the commercialisation of these tokenised funds managed by Renta 4 Gestora among its investors. Onyze will provide the necessary custody services to safeguard these funds, complying with the necessary regulatory requirements. Finally, IoBuilders will collaborate as a technology partner specialising in blockchain technology, with experience in the issuance of digital assets.
The inclusion within this first round of the Sandbox is a great opportunity to demonstrate the full potential for innovation in the financial sector. Rubén Nieto, Managing Director of Allfunds Blockchain: “Consolidating the potential of our blockchain technology through partnerships like this, while taking advantage of the opportunity to work with the regulator, is another step toward strengthening our value proposition through technology. We are pleased to see the interest that our technology generates as a tool for innovation and transformation in the fund industry.”
Ángel Luis Quesada, CEO of Onyze, tells us: “Being able to access the Sandbox, along with relevant players in the financial sector, will help the entire blockchain ecosystem in Spain, showcasing the country as a reference on the regulated custody of digital assets at a European level.”
Miguel Jaureguizar, Director of Digital Development of Renta 4 Banco, said: “The potential of digital assets over DLTs and blockchain is undeniable and we have taken this into account for our Renta 4 Digital Assets solutions. This project represents a major step towards gaining efficiency and innovating in the fund management industry, bringing benefits in transparency, costs and agility for the end user.”
Fernando Paris, CTO, COO of IoBuilders: “The tokenisation of digital assets plays already a key role in financial markets. Actively taking part in this project, alongside the regulator and companies as renowned as Allfunds, Renta4 and Onyze, is an important milestone for IoBuilders. We are focused on delivering technology solutions that are fully compliant with the regulatory framework and bring added value to all participants in the financial system.”
Allfunds Blockchain, an Allfunds Group company, is the leading WealthTech platform in international fund distribution, with a market capitalisation of more than 8.2bn Euro after its recent IPO. The company has a blockchain technology with features unique in the market to date. Its blockchain technologygenerate a unique environment of security, privacy and data governance among financial institutions that enables new ways to programme and automate processes through smart contracts.
Renta 4 Banco is the first Spanish bank specialized in investment, wealth management, capital markets and corporate transactions advisory. It is the only investment services financial entity listed on the Spanish stock exchange and is a member of the General Investment Guarantee Fund.
Onyze is the first crypto-asset custody company in Spain. Onyze is one of the European references in the custody of cryptocurrencies, specialised in working with entities in the banking and investment sector.
IoBuilders is a company specialised in the development of blockchain projects, offering technological solutions and services aimed at both financial and alternative markets, focused on the issuance, management, and settlement of digital assets, as well as deep-tech, legal and business consulting services.
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