CAIS and Digital Asset Partner to Tackle Inefficiencies at Intersection of Wealth Management and Alternative Investments
New alliance will explore use cases for blockchain, distributed ledgers and smart contracts, including faster investor authentication methods, reduction of transaction cost and friction, and enhancing product liquidity
October 18, 2021
CAIS, the leading alternative investment platform, and Digital Asset, the creators of the Daml multi-party application platform, today announced a working collaboration to explore specific use cases for blockchain, distributed ledgers, and smart contracts at the intersection of wealth management and alternative investments. The two companies will cooperate on experimental applications that tackle workflow inefficiencies, while creating operational benefits for financial advisors and their clients.
Leading use case examples include faster investor authentication, the elimination of subscription documents, and the resolution of liquidity needs for funds and products. CAIS is also exploring the potential for blockchain in education certification, which is often an essential part of investor qualification for private funds. All use cases are applicable across alternative strategies, including private equity, venture capital, real estate, real assets, and private debt.
Despite the operational inefficiencies limiting access to alternative products, capital allocation to alternative investment strategies has grown steadily in recent years. Aggregated annual inflows to the private markets, for example, have exceeded $1 trillion in each of the last three years, according to Preqin Pro. By streamlining wealth management systems, while reducing costs and broadening exposure, blockchain technology can help financial professionals redirect more resources towards client relationships and investment advice.
The announcement coincides with this week’s 24th Annual Milken Global Conference, where CAIS is hosting a roundtable discussion on “The Future of Wealth Management” featuring prominent industry leaders.