🤕Problem
Fund Management Inefficiency and Opacity.
What problem is Fume solving?
Fume solves the operational and compliance bottlenecks of stablecoin-based fund management by automating deposits, transfers, and fund admin through on-chain smart contracts.
Context
Asset managers, HNWIs, and professional investors are rapidly adopting USDT, USDC, and other stablecoins for investing and settlements.
Stablecoins enable instant, 24/7 transfers and are becoming the preferred medium for cross-border capital movements.
The rise of stablecoins is transforming fund operations — but back-office processes haven’t caught up.
The Pain Points
Despite this shift, fund operations are still manual and error-prone:
Manual Deposits = Compliance & Operational Risks
Investors must manually copy addresses, select networks, and input amounts.
Opens the door to AML breaches, phishing attacks, wrong currency or wrong chain transfers, and human errors.
Inefficient Fund Administration
Every NAV calculation, management fee extraction, and investor payout is done manually or via intermediaries.
Creates delays, costs, and reporting complexity.
Lack of On-Chain Automation
Stablecoin rails are programmable — but fund workflows are not.
Managers can move capital fast, but they can’t automate fund operations (subscriptions, redemptions, distributions).
Stablecoins Modernized Payments. Fund Admin Stayed Manual
How did you discover this problem?
The need for the Fume protocol comes from the direct pain we have experienced managing our own investment fund in traditional finance (an alternative investment fund based in Luxembourg).
How was this problem solved in the past?
In the past, other solutions tried to solve this problem incrementally, by optimizing some internal investment management processes. Software-as-a-service tools to better connect different banks and brokers, reporting tools to automate administration. Instead of improving pieces of the existing model, Fume uses blockchain technology to rebuild it from the ground up. It allows for a way simpler model, that doesn't have all the bloat and complexity of years of organic growth. This approach is also completely compliant with existing regulations in top-notch jurisdictions. This allows the creation of a new standard for the fund management industry.
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