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Former R3 Consortium Director to Conduct $100 Trillion Fund Trades on Private Blockchain

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Former R3 Consortium Director to Conduct $100 Trillion Fund Trades on Private Blockchain

Brian McNulty, former Managing Director at R3, left the company in January to launch a blockchain project aimed at simplifying the fund management industry.

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R3 is a blockchain financial consortium company that boasts over 130 of the world's largest banks and other international corporations, with members including Google, Microsoft, LG, Huawei, and more.

According to a report, FundAdminChain (FAC), led by McNulty, has revealed that the project has R3 CEO David Rutter as an advisor, along with senior buyers Pete Townsend and Mark Harrison from BNP Paribas.

McNulty utilized R3's Corda platform to develop the blockchain project. According to R3, Corda is a distributed ledger platform designed to record and manage financial agreements, specifically tailored for regulated financial institutions. While inspired by blockchain systems, Corda's design choices address limitations of traditional blockchain systems in many financial scenarios.

McNulty's goal is to revolutionize the fund management industry. The new project plans to incorporate distributors, transfer agents, custodians, and other intermediaries involved in the buying and selling of fund units into a distributed ledger. Initially focusing on transfer agents and message delivery, it aims to primarily assist in building asset services.

The global value of the fund management industry is $100 trillion, and the London-based company aims for a relatively modest goal: to capture 1.5% of the UK market in the first year, equivalent to managing assets of $8.5 trillion AUM.

McNulty mentioned,

"The idea has been brewing for a while during my tenure as global head of services for R3. R3 is passionate about providing fuel for companies like ours, and we couldn't do this without them; I would only do it on the Corda platform. It is the only one that fits the purpose. After three years there, I could see how we could collaborate with some of the other builders of solutions. So, there was no doubt in my mind about the choice of this platform."

He also claims that once successful, FAC could save £30 million in additional expenses out of every £100 billion in assets under management (AUM) in each jurisdiction where funds are located.

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