Automated Discretionary Portfolio Management with Tokenized Assets

Use Cases

About

Use Case Category	Use Case Scope
Private Markets/Asset Tokenization and Trading	This use case explores streamlining discretionary portfolio management by representing traditional and alternative investment funds as tokenized assets on blockchain. This enables automated portfolio construction, management and rebalancing.

Description

Key Stakeholders:

• Portfolio Manager

• Investors

• Fund Managers

• Interoperability Providers

• Tokenization Platforms

Story:

1. Portfolio manager creates investor portfolio linked to model portfolio

2. Investor deposits cash on-chain

3. System automatically computes trades to align to model

4. Orders routed across chains via interoperability infrastructure

5. Fund managers execute orders on respective chains

6. Trades settle on-chain, portfolio aligns with model

Preconditions:

• Portfolio manager offers discretionary management using model portfolios

• Traditional and alternative funds are tokenized on blockchain

• Interoperability infrastructure connects blockchains

• Investors have blockchain wallets

Postconditions:

• Investor portfolios automatically created and rebalanced based on models

• Fund subscriptions/redemptions executed and settled on-chain across assets

Key Benefits:

• Automated, low-touch portfolio management

• Inclusion of alternative investments in discretionary portfolios

• Investable universe expanded across chains

• Near-instant order execution and settlement

• Reduced operational steps and friction

Example Solution Provider:

Onyx, JP Morgan

8MB

portfolio-management-powered-by-tokenization.pdf

pdf