Spain’s second largest bank, BBVA, is launching a tokenization fund as part of a regulatory sandbox implemented by the Spanish securities regulator CNMV. The sandbox allows participants to innovate and try out new technologies under the regulator’s supervision, and each project must be submitted and approved in accordance with the CNMV’s assessments and requirements.
BBVA’s Short-Term Fixed Income Token Fund will register its operations on a private blockchain provided by Allfunds, a software developer that creates decentralized solutions for third parties. BBVA Asset Management will serve as the fund’s administrator and marketer, taking advantage of Allfunds’ network, smart contracts, and nodes created specifically for this test case.
Investors will operate the fund like a traditional fund, freeing it from the complexities of decentralized operations.
