New features. New audiences.
Introducing our innovative Tokenized Model Portfolio Platform for Fund Managers, and groundbreaking Model Portfolio Token Design for Wealth Managers
The fund management industry is ripe for modernization. Model portfolios have become increasingly sought after worldwide, offering investors the opportunity to access expertly curated, diversified portfolios. The traditional complexity and costs associated with integrating such an extensive ecosystem – spanning fund managers, model portfolio providers, distributors, and investors – are dramatically simplified through the strategic use of fund tokens and smart contracts.
The updated Tokenized Model Portfolio Platform
Our new features streamline the construction, distribution, and management of tokenized model portfolios for enhanced efficiency and cost-effectiveness. The new functionality is designed to modernize and simplify the model portfolio ecosystem by improving connectivity between tokenized and un-tokenized funds and securities, enabling greater automation. For buy-side institutions and fund managers, our model portfolio token design significantly reduces the volume, complexity and cost of processes through several key features:
- Enhanced integration with model portfolio providers: Tokenbridge now enables providers to utilize blockchain technology for issuing smart contracts. These contracts dynamically manage the rules and characteristics of their model portfolios, allowing fund managers to more effectively align model portfolios with investors’ desired outcomes.
- Improved connectivity between distributors and investors: Distributors can now execute model portfolio smart contracts, generating a unique token for investors. This process facilitates a more personalized investment experience.
- Real-time portfolio evaluation: Tokenbridge’s infrastructure supports ongoing assessment of investors’ portfolios against their chosen model. By comparing the issuer’s smart contract with both the tokenized and traditional components of an investor’s portfolio, adjustments (such as rebalancing) are instantly mirrored, ensuring alignment with the model portfolio.
Our infrastructure is designed to drive this evolution, providing broader access and a streamlined, more effective, and highly personalized investment experience for a new era of investors. As the move towards tokenization accelerates, our technology ensures seamless integration of client portfolios with popular retail models. Immediate updates to these models are directly reflected in the client’s portfolio, representing a significant leap forward for the industry. This not only enhances current processes but also benefits all ecosystem participants and aligns with regulatory focus on investment advice and outcomes. Our innovative approach ensures that traditional finance assets are also integrated into the blockchain ecosystem, offering fund managers and their clients the optimal blend of cost efficiency and trusted investment options.
Model Portfolio Token Design
And there’s more. Our new platform simplifies issuance, distribution and rebalancing of model portfolios, enabling more efficient processes that significantly reduce cost and friction between participants. For institutions and distributors, our model portfolio token design significantly reduces the volume, complexity and cost of processes through the following key features:
- Greater connectivity with model portfolio providers: providers of model portfolios are able to issue smart contracts via the blockchain that dynamically manage the rules and characteristics of their models enabling wealth managers and advisers to far better match suitable model portfolios to their clients’ desired investment outcomes.
- Greater connectivity between distributors and clients: distributors can execute their chosen model portfolio smart contract, creating a ‘personalized’ token on behalf of clients.
- Constant portfolio evaluation: Tokenbridge’s infrastructure allows for the evaluation of the client’s portfolio against the selected model by comparing the issuer’s smart contract with the fund tokens (and untokenized units) in the consumer’s portfolio, so that rebalancing of the underlying (for example, for drift) is instantly reflected in the client’s portfolio.
For investors, tokenized model portfolio functionality offers greater flexibility to choose or switch model portfolios and paves the way for ‘hyper-personalization’, ensuring that their portfolios accurately reflect their investment preferences in both the tokenized and TradFi (untokenized underlying funds and securities) ecosystems. This is achieved by automating the acquisition of fund tokens (and untokenized units) to match the composition of their desired, customized model portfolio.
Faster and smarter
Our model portfolio infrastructure is designed to facilitate this change – giving broader access and a simpler, more effective and more personalized experience to the next generation of investors. As tokenization gathers pace, for wealth managers and advisors, our technology means that client portfolios can be easily linked to popular retail models and any changes to those models will be instantly reflected in the client’s portfolios. A tokenized funds ecosystem represents a natural next step for the industry, vastly improving current processes, benefiting participants across the ecosystem, and aligning with regulators concerned about access to advice and investor outcomes. Our model portfolio token design ensures that TradFi assets are also connected to the distributed ledger world, offering advisers and their clients the best cost advantages of today with their brand-name favourites.