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UBS Tests Out FundsDLT, a Blockchain-Based Platform for Asset Distribution

Blockchain-based fund distribution platform FundsDLT has successfully completed a trial implementation by UBS Asset Management.

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UBS trials blockchain-based asset distribution platform, FundsDLT
UBS trials blockchain-based asset distribution platform, FundsDLT

UBS Tests Out FundsDLT, a Blockchain-Based Platform for Asset Distribution

In the ever-evolving world of finance, blockchain technology continues to make strides in improving transparency, efficiency, and compliance in fund distribution and asset tokenization. As of 2025, several major financial institutions and fintech companies are actively developing or piloting solutions that leverage blockchain for these purposes.

One such platform is FundsDLT, historically focusing on blockchain-based solutions for fund distribution and post-trade processing. The platform, part of LuxSE subsidiary FundsSquare, recently completed a proof of concept with UBS Asset Management. This collaboration aims to streamline the distribution process through automation and efficiencies.

Patric Huber, Head of Product Strategy at UBS AM, emphasized the importance of technology as a differentiator and innovation as the foundation for their services.

Another organization exploring the use of blockchain for fund distribution is FundAdminChain. Its goal is to reduce reconciliation friction and operational risk for fund managers and distributors by leveraging blockchain technology.

Allfunds, another platform specializing in fund distribution and post-trade processes, has also been at the forefront of blockchain adoption for fund market infrastructures. The current trend is toward integrating tokenized assets and enhancing interoperability with blockchain-based workflows.

Calastone and IZNES, two other platforms in this space, have been digitizing fund transactions for years and are now focusing on integrating tokenized assets into their operations. IZNES, targeting digital asset management and tokenization, fits the growing segment facilitating token-based fund distribution, benefiting from regulatory advancements in Europe and other hubs.

The landscape for blockchain-enabled fund distribution platforms also includes UBS Asset Management and Credit Suisse. Both are among the leading traditional financial firms exploring blockchain and tokenized asset workflows as part of institutional digital liquidity funds and tokenized collateral networks. The goal is to improve settlement times and enable programmable collateral management on blockchain networks.

Regulatory frameworks are emerging in key jurisdictions, such as the EU/UK, Singapore, Hong Kong, and the US, to support tokenized fund markets, improving legal clarity and market confidence. Live production deployments of tokenized collateral networks and multi-billion AUM digital funds on Ethereum demonstrate the operational maturity of blockchain fund distribution models.

However, challenges remain in interoperability between blockchain and legacy systems, secondary market liquidity, and standardization. Major financial institutions, including UBS and Credit Suisse, continue pilot projects and implementations to navigate these issues.

The tokenized asset market is projected to grow exponentially, from USD 0.6 trillion currently to USD 18.9 trillion by 2033, driven by institutional adoption of blockchain fund distribution and asset tokenization platforms. The landscape for blockchain-enabled fund distribution platforms involving FundsDLT, UBS Asset Management, Credit Suisse, Azimut Group, Calastone, Allfunds, IZNES, and FundAdminChain is evolving from pilots to more mature, production-grade platforms. These entities are leveraging blockchain to achieve faster settlements, greater transparency, and programmable market infrastructure, supported by growing regulatory acceptance and significant market opportunities projected for the next decade.

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