BBVA is unveiling a tokenized fund integrated into the Spanish securities regulator's sandbox, exclusively available to BBVA employees for exploring the advantages of implementing blockchain technology in these scenarios.
BBVA Ventures into the World of Blockchain with First Tokenized Fund
Traditional financial institutions are now embracing the testing of decentralized technologies and their application to current use cases to evaluate potential benefits. Banco Bilbao Vizcaya Argentaria (BBVA), Spain's second-largest bank, has revealed its plans to introduce a tokenized fund within the regulatory sandbox established by the CNMV, the Spanish securities regulator.
This sandbox provides a platform for participants to innovate and experiment with new technologies under the supervision of the regulator. Each project must undergo presentation and evaluation to meet the criteria set by the CNMV.
The BBVA Token Short-Term Fixed Income fund will conduct its operations on a private blockchain developed by Allfunds, a software company specializing in decentralized solutions for external parties. BBVA Asset Management will oversee the fund management and promotion, utilizing Allfund's network, smart contracts, and nodes specifically designed for this pilot project.
Despite its decentralized nature, investors will interact with the fund in a manner similar to traditional funds, shielding them from the complexities of its blockchain operation. This means that individuals experienced in managing financial instruments can also engage with this fund.
Given its experimental nature, only BBVA employees will participate in this fund, enabling the bank to evaluate the performance of this blockchain-based instrument without endangering regular customers. BBVA emphasized that this endeavor was the fruit of collaboration between its Asset Management division and various teams within the BBVA group, including those focusing on digital assets and blockchain technology.
Highlighting the importance of this initiative for the institution, BBVA Asset Management Europa CEO Belen Blanco expressed, "The project represents a significant stride towards embracing a technology with vast transformative potential in asset management, commencing in a controlled and regulated environment that will enable BBVA AM to explore its advantages securely and on a scalable level."
Furthermore, the bank recently disclosed its plans to introduce a Euro-pegged stablecoin next year in a partnership with Visa.
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