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
NEW YORK, October 18, 2021--(BUSINESS WIRE)--CAIS, the leading alternative investment platform, and Digital Asset, the creators of the Daml multi-party application platform, today 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.
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"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."
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.
"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.
CAIS is the leading alternative investment platform for financial advisors who seek improved access to, and education about, alternative investment funds and products. CAIS provides financial advisors with a broad selection of alternative investment strategies, including hedge funds, private equity, private credit, real estate, digital assets, and structured notes, allowing them to capitalize on opportunities and/or withstand ever-changing markets. CAIS also provides an industry-leading learning system, CAIS IQ, to help advisors learn faster, remember longer, and improve client outcomes.
All funds listed on CAIS undergo Mercer’s independent due diligence and ongoing monitoring. Mercer diligence reports and fund ratings are available to advisors on the CAIS password-protected platform. CAIS streamlines the end-to-end transaction process through digital subscriptions and integrated reporting with Fidelity, Schwab and Pershing, which make investing in alternatives more simple.
Founded in 2009, CAIS, a fintech leader, is empowering over 4,200+ unique advisor firms/teams who oversee more than $2T+ in network assets. Since inception, CAIS has facilitated over $13B+ in transaction volume. CAIS is the first truly open marketplace where financial advisors and asset managers engage and transact directly on a massive scale.
About Digital Asset
Digital Asset is a software and services provider that helps enterprises build economic value through interconnected networks. The company designs and delivers technology that reshapes legacy systems and workflows into efficient, secure, and interconnected applications. Daml, our core technology, is a platform for building multi-party applications. It extracts and simplifies business processes to make data accessible and optimizes workflows using smart contracts. Leading organizations across financial services, insurance and healthcare partner with Digital Asset to create new multi-party solutions that transform disparate silos into synchronized networks.
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