Alternative investment platform CAIS and Digital Asset have teamed up to address inefficiencies at the convergence of wealth management and alternative investments.
The companies will work together to explore specific use cases for blockchain, distributed ledgers, and smart contracts at the intersection of both industries.
They will focus on developing experimental applications to remove workflow inefficiencies while providing operational benefits for financial advisors and their clients.
Faster investor authentication, the elimination of subscription documents, and the resolution of liquidity needs for funds and products are said to amongst the prominent use case examples.
These are considered applicable across alternative strategies, including private equity, venture capital, real estate, real assets, and private debt.
Additionally, CAIS is looking at potential use of blockchain in education certification in a bid to democratise access to private funds.
CAIS founder and CEO Matt Brown said: “This alliance with Digital Asset furthers our mission to improve every aspect of the wealth manager’s experience.
“We are attuned to their challenges and frustrations and believe the time has come to find a better way. It is no longer about making processes electronic or automated; it is about eliminating them altogether.”
The capital allocation to alternative investment strategies is said have grown steadily in recent years, in spite the operational inefficiencies restricting access to alternative products.
Leveraging blockchain technology to streamline wealth management systems is expected to help financial professionals put in more resources towards client relationships and investment advice.
Digital Asset co-founder and CEO Yuval Rooz said: “We believe the time is right to team with CAIS and bring blockchain technology to the historic, systematic problems at the nexus between wealth management and alternative investments.
“By lowering the burden of administration, we can improve product transparency and affordability for retail capital seeking new and diversified portfolio opportunities.”
Last November, CAIS secured Series B equity funding of $50m from holding company Eldridge.