New alliance will explore use cases for blockchain, distributed ledgers and smart contracts, including faster investor authentication methods, reduction of transaction cost and friction, and enhancing product liquidity
CAIS, the leading alternative investment platform, and Digital Asset, the creators of the Daml multi-party application platform, announced a working collaboration to explore specific use cases for blockchain, distributed ledgers, and smart contracts at the intersection of wealth management and alternative investments. The two companies will cooperate on experimental applications that tackle workflow inefficiencies, while creating operational benefits for financial advisors and their clients.
“By jumping beyond automation and into distributed ledger technology, CAIS is making a calculated bet on the future of the industry,” said Matt Brown, Founder and CEO of CAIS. “This alliance with Digital Asset furthers our mission to improve every aspect of the wealth manager’s experience. We are attuned to their challenges and frustrations and believe the time has come to find a better way. It is no longer about making processes electronic or automated; it is about eliminating them altogether.”
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Leading use case examples include faster investor authentication, the elimination of subscription documents, and the resolution of liquidity needs for funds and products. CAIS is also exploring the potential for blockchain in education certification, which it believes is essential to democratizing access to private funds. All use cases are applicable across alternative strategies, including private equity, venture capital, real estate, real assets, and private debt.
Despite the operational inefficiencies limiting access to alternative products, capital allocation to alternative investment strategies has grown steadily in recent years. Aggregated annual inflows to the private markets, for example, have exceeded $1 trillion in each of the last three years, according to Preqin Pro. By streamlining wealth management systems, while reducing costs and broadening exposure, blockchain technology can help financial professionals redirect more resources towards client relationships and investment advice.
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“We believe the time is right to team with CAIS and bring blockchain technology to the historic, systematic problems at the nexus between wealth management and alternative investments,” said Yuval Rooz, Co-Founder and CEO of Digital Asset. “By lowering the burden of administration, we can improve product transparency and affordability for retail capital seeking new and diversified portfolio opportunities.”
The announcement coincides with this week’s 24th Annual Milken Global Conference, where CAIS is hosting a roundtable discussion on “The Future of Wealth Management” featuring prominent industry leaders.
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