Jason Broder, Managing Director and Chief Product Officer for iCapital, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the benefits of iCapital’s milestone of processing 100 alternative investment funds using blockchain-based distributed ledger technology (DLT).
Distributed ledgers elevate the technology in the alternative investment space. Broder states that today’s archaic infrastructure doesn’t lend itself to scaling to where the industry wants it to be. Distributed ledger technology supports a fund’s entire life cycle, from onboarding and subscriptions to redemptions, capital calls, and distributions.
Blockchain-based smart contracts automate the entire process, relieving advisors of the manual processes commonly used in the alternative investment industry today. The emailing of PDF and Excel files between advisors, general partners, administrators, and transfer agents leads to latency and manual reconciliation.
The distributed ledger technology utilizes a single API and serves as a single source of truth. The process is much easier for advisors, who only need to enter client data once. iCapital is stress testing the technology on 100 funds across all types, including private equity, private credit, and real assets, before automating even more of their funds.
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