Amundi Launches Tokenized Fund Shares on Ethereum

Amundi Steps into Tokenization with Ethereum-Based Fund

One of Europe's leading asset managers, Amundi, has announced the creation of a tokenized share class for its flagship euro cash fund. This move signals a growing trend of traditional financial institutions adopting distributed ledger technology (DLT) for enhanced efficiency and transparency.

Hybrid Structure for Traditional and Tokenized Access

The Amundi Funds Cash EUR fund will now operate with a hybrid model. Investors retain the option to purchase traditional shares using cash or opt for the tokenized version on the Ethereum blockchain (ETH). The initial transaction occurred on November 4th.

Amundi partnered with CACEIS, a prominent European asset-servicing firm, to develop this product. CACEIS provides the necessary digital wallets and platform to facilitate subscriptions and redemptions of the tokenized fund shares.

Benefits of Tokenization:

• Faster Settlement: Tokenization accelerates settlement times compared to traditional methods.
• Improved Audit Trail: Blockchain technology provides a transparent and auditable record of all transactions.

According to Amundi's statement, the fund leverages DLT and the public Ethereum blockchain for clear record-keeping and transaction traceability.

Europe Leading the Way

This development reinforces Europe's position at the forefront of regulated tokenized funds. Several firms in countries like Luxembourg, France, and Germany have been issuing blockchain-native fund units for years, supported by regulations that offer clear guidance on digital shareholding and recording.

CACEIS has announced that investors will be able to purchase the fund using stablecoins or potentially central bank digital currencies (CBDCs) in the future.

Jean-Pierre Michalowski, CEO of CACEIS, emphasized that this new hybrid Transfer Agent service allows clients to easily access a new distribution channel via blockchain.

This represents a significant step toward offering 24/7 subscription and redemption services for investment fund units, potentially payable in stablecoins or CBDCs in the future.

Key Takeaways:

• Amundi launches a tokenized share class of its euro cash fund on Ethereum.
• This offers investors both traditional and tokenized options for accessing the fund.
• Tokenization aims to improve settlement times and auditability.
• The move highlights Europe's leadership in regulated tokenized funds.
• Future plans include supporting purchases with stablecoins and CBDCs.