# Automated Discretionary Portfolio Management with Tokenized Assets

## About

<table><thead><tr><th width="304">Use Case Category</th><th>Use Case Scope</th></tr></thead><tbody><tr><td>Private Markets/Asset Tokenization and Trading</td><td>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.</td></tr></tbody></table>

## 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:**&#x20;

* 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

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