How Asset Managers Benefit From Fund Servicing Becoming a Connected Ecosystem

Traditional fund servicing optimizes functions in isolation - fund administration here, transfer agency there. A fundamentally different architecture is emerging: integrated ecosystems where core functions share a unified data infrastructure. Clearstream and SimCorp, both part of Deutsche Börse Group, are pioneering this shift, connecting front-to-back investment management with digital transfer agency to create interoperability across the investment lifecycle.

Fund servicing is at a tipping point. SimCorp’s recent InvestOps Report 2026, based on responses from 200 investment managers worldwide, shows that achieving a competitive edge through innovation is the top driver of their technology and operations investments (55%) and that consolidating technology platforms is the leading technology initiative for 2026 (58%). These managers also expect their service providers to match that level of focus on both innovation and simplification. As managers adopt integrated platforms that deliver real-time data, they're exposing the limitations of overnight batch processing. Fund administrators and transfer agents can no longer operate in isolation; they must close the capability gap between traditional infrastructure and the integrated operating models that clients are demanding.

Beyond integration considerations, client expectations are fundamentally shifting. Asset managers are exploring fund tokenization to unlock modern distribution channels and meet the rising demand for access to private markets.  The evolution of private‑market access beyond traditional institutional channels is becoming a central industry theme.  

Most legacy systems cannot meet these demands. Built decades ago, for a more batch-driven, overnight, institutional model, they struggle to provide the real-time interoperability and data transparency now required. The result is familiar across the industry: fragmented datasets, manual reconciliation, and high operational costs.

In addition, the infrastructure for public market funds and private market funds (e.g. ELTIFs) is based on multiple operating models and data silos with all the operational complexity associated with these.

Yet this convergence of pressure also creates an opportunity. A new generation of unified, data-driven operating models is emerging - models that connect fund administration, accounting, investor registers and distribution channels in real time - both for public and private market funds.  The technological foundations now exist to re-architect fund servicing as an integrated ecosystem rather than a chain of disconnected actors.

The Natural Convergence of Administration and Distribution

While a number of service providers are enhancing fund-administration and transfer-agency capabilities, most innovations still sit within the boundaries of existing architectures. The industry is shifting toward a fundamentally different model: ecosystem connectivity that links functions through shared infrastructure rather than optimizing them in isolation.

The partnership between SimCorp and Clearstream Fund Services, using FundsDLT technology, shows the model in action. This partnership combines - across public and private assets - SimCorp’s front-to-back investment management platform SimCorp One with Clearstream’s Digital solutions, which include fund tokenization and digital transfer agency (Digital TA).  FundsDLT was one of the earliest pioneers of fund tokenization globally, and now runs live, scaled deployments across multiple asset classes. Through Digital TA, several fund asset classes such as money‑market funds, equity funds, and multi‑asset strategies, are already being tokenized on a daily basis and across several fund domiciles.

The collaboration is therefore wide-ranging and enables real-time interoperability across portfolio and investor data. This results in faster processing, greater transparency, and a foundation for new digital distribution models that legacy systems cannot support. 

Importantly, by connecting SimCorp One’s front‑to‑back portfolio engine with Clearstream’s Digital TA and distribution infrastructure, the market gains a fully integrated operating model across the entire fund lifecycle - from portfolio construction to distribution, transaction processing, investor registers, and secondary‑market liquidity.

With shared-ledger registers that reduce reconciliation and accelerate processing, this marks an evolution from automation to collaboration. Instead of optimizing each function independently, the market is increasingly focused on how fund actors can operate on a shared-data model that spans both portfolio and investor information, across all asset classes.

A Hybrid Reality: Modernizing Without Disruption

The journey is gradual rather than disruptive. Most institutions are adopting hybrid models that integrate cloud-native and distributed-ledger capabilities with the systems that underpin their daily operations. SimCorp One exemplifies this approach: a unified, API-driven platform for front-to-back investment-management processes that connects seamlessly with external systems, service providers and market infrastructures. For fund administrators, this provides a flexible, multi-asset backbone for accounting, valuation, and reporting.

On the distribution side, digital-register platforms - such as Clearstream’s Digital TA - modernize investor servicing by enabling automated workflows, real-time data visibility and blockchain-secured register integrity. Because these platforms support multi-manager and multi-domicile distribution, they provide the operational foundation needed for tokenized funds and private-market accessibility.

Put simply, this ‘Hybrid Fund Market Infrastructure’ approach means integrating digital assets, tokenized fund units, and DLT‑based registries directly into the core value chain, but at the same time preserving the resilience and safety of traditional post‑trade infrastructure. With this approach, ecosystem participants gain the benefits of real‑time settlement, atomic DvP and cross‑chain interoperability, all without compromising on risk, governance, or scale.

“Convergence is a natural evolution of the industry. As operating models become more data-driven and real time, seamless integration between portfolio management, fund administration, and distribution is no longer optional, it is simply aligned with how the market itself is transforming.”  Lisa Koenig, Head of CFS Strategy, Clearstream Fund Services

When fund actors exchange data seamlessly, the operational benefits compound quickly. Straight-through processing increases while the need for manual intervention decreases, making regulatory reporting faster and more automated. SaaS and cloud-delivery models accelerate this shift by lowering the entry barrier for smaller service providers- spreading costs over time, and providing the flexibility needed to scale.

A Connected Ecosystem Takes Shape

The future digital backbone of global fund distribution connects asset managers, administrators, distributors and market infrastructures through a unified operating model.

The greatest advantages come when its capabilities work together. Blockchain-based registers create a single source of truth for investor activity. Real-time data flows directly into fund-accounting and portfolio-management systems, improving accuracy, and reducing the need for reconciliation. The impact extends to investment decisions: cash inflows become visible earlier in the cycle, allowing portfolio managers to deploy capital faster and reduce cash drag.

“The future of fund operations depends on interoperability. Systems must communicate in real time, whether they support public markets, private markets, or tokenized instruments. Combining SimCorp One with Clearstream’s technology via our Open Ecosystem is a prime example of leveraging an open platform, in this case integrating solutions from within Deutsche Börse Group’s wider offering for the buy-side.” - Oliver Neumann,  Managing Director, SimCorp

Commercially, it opens the door to new digital-distribution channels, including wealth platforms, digital banks and token exchanges, across both traditional and private-market funds. Embedding tokenization and Digital TA into a network enables distributors, wealth managers and digital platforms to access fund products with the same scalability and safety as traditional instruments, but with far richer data and automation.

Working in such a connected ecosystem produces tangible and significant results. As an example, Standard Chartered Bank’s rollout of Clearstream's Digital TA solution across six Asian markets is a clear demonstration of this maturity in production environments. It has led to operational costs being reduced by more than 50% while enabling a fully digitalized investor‑servicing model.

Future Vision: From Operations to Enablement

Despite significant progress, the path forward is not without challenges. Many institutions still rely on legacy platforms that are not naturally compatible with cloud-native or DLT-based systems. Interoperability gaps persist between providers, and there remains a need for standardized smart-contract templates and shared data models that allow market participants to operate seamlessly across jurisdictions and asset classes.

“Asset managers are not looking for more technology layers - they are looking for fewer handoffs and fewer reconciliations. Shared infrastructure is what allows them to scale without multiplying operational models.” -  Olivier Portenseigne, CEO of FundsDLT & Head of Digital Products, Clearstream Fund Services

Industry initiatives are already addressing these barriers. Clearstream’s partnerships in Europe, the Middle East and Asia, SimCorp’s open-API integration frameworks, and regulatory sandbox programs across key markets are accelerating cross-platform compatibility. SaaS-delivered DLT solutions reduce implementation complexity, while global working groups are developing common standards for fund-administration and distribution data.

The industry is transitioning from fragmented, intermediary‑centric fund chains toward an open, data‑driven ecosystem. Clearstream and SimCorp are jointly laying the foundations for this evolution: a digital, scalable, interoperable infrastructure where fund issuance, investor servicing and distribution operate seamlessly across traditional and tokenized models. This digital backbone positions the industry for the next decade-supporting expanded ETF‑style structures, tokenized fund formats, private‑market inclusion, and intraday distribution models.

The Foundations of Strategic Advantage

As convergence accelerates, the combination of real-time data, integrated workflows, and shared-ledger infrastructure allows institutions to move beyond cost-control metrics toward value-creation metrics. These include better investor engagement, richer analytics, more personalized products, and faster market expansion. Additionally, digital fund-servicing models can support both public and private markets with equal transparency and efficiency, creating the foundation for scaled retail distribution of alternative assets.

In this future ecosystem, fund administrators will provide not only NAVs and regulatory reports but actionable insight into investor behavior and product performance. Transfer agents will evolve into digital distribution orchestrators. And asset managers will benefit from a unified infrastructure that connects portfolio data, investor data, and operational data without friction.

The evolution is well underway. Those who invest today in interoperable, scalable, data-driven platforms will not simply modernize their operations, they will position themselves at the center of a more connected, inclusive, and efficient fund industry.

This article first appeared in Funds Europe on 24th February 2026.