Allfunds, Alchelyst launch blockchain API for private markets distribution

Private markets solutions firm Alchelyst has partnered with Allfunds Blockchain to launch a new blockchain-based API designed for the distribution of private funds. The collaboration enables straight-through processing for fund subscriptions, redemptions, and switches, leveraging Allfunds' permissioned blockchain infrastructure. This development is significant for the blockchain sector as it demonstrates the integration of distributed ledger technology to streamline fragmented back-office processes in the multi-trillion dollar fund administration market.

Alchelyst, a fund administration startup focused on alternative asset managers, has partnered with Allfunds Blockchain to implement a blockchain API for private fund distribution. This technical integration enables straight-through processing (STP) for key transaction types, including subscriptions, redemptions, and switches within private markets. The initiative utilizes Allfunds Blockchain's permissioned network, which is backed by the parent company's massive scale of €1.76 trillion ($2.04 trillion) in assets under administration.

Alchelyst recently expanded its market presence through a merger with Lyra Client Solutions, a spinoff from the prominent alternative asset manager Apollo Global. The company maintains strong institutional ties, counting both Apollo and Motive Partners as financial backers. This pedigree positions the firm to bridge the gap between traditional alternative asset management and modern distributed ledger technology, specifically targeting the inefficiencies inherent in private market operations.

According to Will Callaghan, Alchelyst’s Head of Product, the partnership allows clients to access a distribution reach that would normally necessitate significant independent capital investment. The blockchain API is designed to solve the problem of fragmented back-office processes by providing a unified, automated layer for fund activities. This shift toward blockchain-based automation represents a broader trend in the capital markets sector to replace legacy manual workflows with real-time, transparent digital solutions.