Northern Trust has processed the first live capital call using distributed ledger technology (DLT) for Emerald Cleantech Fund III LP, a venture capital fund focused on technology companies.
The capital call, executed by Northern Trust and Emerald Cleantech Fund III, involved parties in the investment advisor’s office in Zurich, Switzerland, the board of directors, and PwC Channel Islands, the fund’s auditor, who performed the audit of the capital call.
All parties connected through a distributed ledger, based in Guernsey, which was operated by Northern Trust in its capacity as the fund’s administrator.
According to Northern Trust, this has added significant new capability to its industry-leading blockchain solution for private equity fund administration.
Pete Cherecwich, president of corporate and institutional services at Northern Trust, said: “Northern Trust has again broken new ground in the live application of blockchain technology in financial services.”
“Working in partnership with key clients and regulators, we continue to deploy additional distributed ledger capabilities that drive efficiency and security across the spectrum of private equity lifecycle events. This is a further demonstration of how Northern Trust continues to lead the market with our innovation in technology. ”
Hans Dellenbach, partner and CFO at Emerald Technology Ventures, commented: “We are proud to participate in this milestone in the use of distributed ledger technology. Northern Trust’s technology and operations teams have built an industrial strength, scalable and secure cloud application that is fully microservice-based and uses advanced event-based communications and application programming interface.”
Dellenbach added: “Emerald is proud to be a first mover in using blockchain technology for fund administration and happy to see it deployed successfully on behalf of our innovative fund and investors.”
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