Case Study: Traditional Fund vs. On-chain Fund
Fume provides a range of fund services to asset managers and administrators across digital and traditional finance.
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Fume’s on-chain administration protocol removes intermediaries and the need for any manual reporting using smart contracts on public blockchains.
Fume brings on-chain the full administration lifecycle of a fund, including among other things the tokenization of fund shares. Click below to learn more about the differences between a tokenized fund and an on-chain fund.
Discover on-chain FundsFume’s on-chain administration protocol removes intermediaries and the need for any manual reporting using smart contracts on public blockchains.
A digital transfer agent encoded in a smart contract to receive in-kind or fiat subscriptions issuing tokenized fund shares.
The Net Asset Value and fees are computed and recorded on the blockchain. Management, performance, entry, and exit fees can be automatically settled in a single transaction without additional reporting.
The protocols is connected to multiple custody solutions, allowing any kind of investment strategy, such as digital assets (e.g. DeFi with 24/7 Proof-of-Reserves), traditional (e.g. stocks), or private equity (e.g. VC).
Fume’s on-chain administration protocol removes intermediaries and the need for any manual reporting using smart contracts on public blockchains.
For managers with an existing fund structure, or operating below threshold. For innovative fund administrators looking to expand their offering.
Are you looking to set up a new fund? Then explore the full-package setup with our trusted partners in Luxembourg.
To learn more, visit our blog or check the questions below.
Yes, the shares of an on-chain investment fund are tokenized and issued following the ERC-6909 standard on selected EVM chains.
Although the administration is performed on-chain via smart contracts, there are no limitations on the underlying assets class. Therefore you can invest in stocks, digital assets, real estate and more.
Absolutely. In fact our on-chain transfer agent fully automate the subscription and redemption procedures for in-kind subscriptions (e.g. stablecoin).
We also leave the door open for investors who are still coming from the traditional financial system. The on-chain transfer agent keeps record of fiat subscriptions as well.
Unless you operate below a threshold (e.g. small AUM or a few investors), you should either use an existing fund vehicle, or rely on our trusted partners to set up a new investment fund.
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