R3’s former managing director Brian McNulty is working on a blockchain project utilising R3’s Corda platform, Coindesk writes. FundAdminChain (FAC) is aiming to revolutionise the fund management industry. The new platform plans to bring in distributors, transfer agents and custodians to a blockchain who will take part in buying and selling units in a fund.
The fund management industry is worth $100 trillion globally, and the company hopes to capture 1.5 per cent of the U.K. market, which equals $8.5 trillion in assets under management.
Besides McNulty, FundAdminChain (FAC) has also attracted the attention of R3 CEO David Rutter who serves as the project’s advisor, as well as Peter Townsend and Mark Harrison, both formerly of BNP Paribas.
McNulty promises millions in savings to fund managers. According to McNulty, while charges for the registry, depository and transaction functions typically run up to 5 basis points, his new project could bring them down to 0.5 basis points. Therefore, McNulty said, using FAC could result in savings of £30 million per year for “for every £100 billion assets under management.”