Considering the recent position paper on fund tokenisation issued by the Malta Financial Services Authority (MFSA), CCFundServices (CCFS) has entered a strategic alliance with Fume, a leader in on-chain fund infrastructure. This collaboration is designed to deliver legally compliant, tokenised fund solutions tailored for the Maltese market.
Merging Traditional Expertise with Blockchain Innovation
This collaboration is a milestone in CCFS's mission to integrate the reliability of traditional finance with the innovation of blockchain technology. CCFS will contribute its deep regulatory and operational knowledge to the development of digitally native fund structures. Leveraging Fume's advanced on-chain architecture, funds such as UCITS, NAIFs, NPIFs, and AIFs in Malta can now be tokenised on EVM-compatible blockchains using the innovative ERC-6909 standard.
Why Tokenise Investment Funds?
Tokenising a fund allows the investor register, compliance mechanisms, and financial rights to be hosted on an auditable, transparent public blockchain. Using Fume's multi-asset framework, each unit class becomes a programmable digital asset, maintaining a direct one-to-one link with the traditional share register.
Key Advantages for Fund Managers and Investors
Smart Compliance: Built-in features like whitelisting, transfer restrictions, and lock-up periods are enforced through code, reducing legal and administrative work.
Real-Time Settlement & Fractional Units: Funds can be traded 24/7, with instant peer-to-peer settlements that also allow for micro-investments.
Transparency: Blockchain logging of NAVs, fees, subscriptions, and redemptions streamlines audits and meets regulatory demands.
Efficiency Gains: Tasks such as cap-table management and investor communication are automated, potentially cutting fund administration costs by up to 80%.
Global Access: Digital onboarding opens doors for qualified investors worldwide, bypassing traditional banking limitations.
Stablecoins: The Financial Backbone
Beyond simplifying subscriptions and redemptions, stablecoins are the cornerstone of this modern fund administration approach.
How It Works:
Fast Transactions: Subscriptions and redemptions via stablecoins like USDC or USDT allow for T+0 settlements, removing banking delays and currency risks.
Automated Fees: Smart contracts handle fee calculations and deductions automatically at each NAV event.
Streamlined Distributions: Dividends are airdropped proportionally to token holders in a single blockchain transaction.
Transparent Records: All financial activity is immutably recorded on-chain, providing an audit-friendly, real-time ledger.
Supporting Both Digital-Native and Traditional Investors
Understanding the needs of both blockchain-savvy and conventional investors, the solution also accommodates fiat-based transactions. This dual-track system ensures seamless integration with traditional financial systems, offering maximum flexibility without compromising regulatory compliance.
A Unified Vision for Compliant Innovation
CCFS and Fume are united by a shared ambition to make regulated blockchain-based investment products more accessible and scalable. With rising interest from institutional investors in digital assets, the demand for trustworthy infrastructure is greater than ever.
"This is a defining moment for CCFS," said Steven Grech, Executive Director at CCFS. "Tokenised funds offer tremendous potential to transform asset management. Our goal is to support this innovation within a firm regulatory framework."
Delivering Robust and Scalable Fund Structures
Unlike many tokenised solutions that struggle with regulatory uncertainty, this initiative is built on a compliance-first philosophy. By merging CCFS's structuring expertise with Fume's programmable technology, the collaboration creates a secure, scalable foundation for both traditional and digital asset managers.
Looking Ahead
In the coming months, CCFS will assist fund managers and service providers in adopting tokenised structures via the Fume platform. This comprehensive service includes regulatory consultation, legal structuring, and operational support to help stakeholders transition confidently into tokenised fund management.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
