Baillie Gifford Launches Cryptocurrency Fund with Ethereum
Information About the Tokenized UCITS Project
On June 21, Tom Wan, head of data at Entropy Advisors, announced noteworthy news on platform X. The prestigious UK Fund Management Company, Baillie Gifford, with total assets under management of up to £197 billion, has officially chosen Ethereum as the platform for its fully tokenized financial fund project. This project is part of the Strategic Bond Feeder Fund, a tokenization experiment approaching European regulations. Essentially, this is a breakthrough step in combining cryptocurrencies with traditional financial products.
The Significance of UCITS Funds in the European Market
UCITS (Undertakings for the Collective Investment in Transferable Securities) is a special type of investment instrument, popular and strictly regulated in the European Union. They focus on investing in easily tradable securities, providing a diverse, safe, and transparent fund channel for investors. Tokenizing this fund helps promote liquidity, reduce operational costs, and expand access for institutional and individual investors to traditional financial products through blockchain technology.
Details About the Testing Phase at Baillie Gifford
During the testing phase, Baillie Gifford intends to hold the fund's Tokens in a self-custodial wallet, ensuring maximum security for clients' digital assets. This fund will be exclusively reserved for a select group of clients, verified through a whitelist. Through this process, the company will assess the operational capability, safety, and transparency of the tokenization activities according to EU legal standards. This is a significant step that demonstrates the fund manager's commitment to applying blockchain technology to drive a clear transformation in the traditional financial sector.
The Trend of Cryptocurrency Development in Financial Management
Baillie Gifford's choice of Ethereum to test tokenized UCITS is clear evidence of the trend to integrate blockchain platforms into traditional financial products. Banks, investment funds, and other financial institutions increasingly recognize the great potential of cryptocurrencies to optimize operations and enhance competitiveness. These digital assets not only promote the digitization of assets but also foster transparency and security in global financial transactions, contributing to reshaping the traditional financial ecosystem in the digital age.
Source: https://tintucbitcoin.com/baillie-gifford-thu-nghiem-token-hoa-ethereum/
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