2. Areas of Interest
• Post-trade Data
• Settlements, Clearing, and Audits
• Issuing & Transferring Assets
• Tracking Intellectual Property & Fraud Prevention
• Compliance: AML, KYC, and Reporting
3. Immediacy, Auditability, Transparency
• Reduces infrastructure footprint
• Register, Store, and Transfer Assets
• Record ownership
• Lower capital requirements
• Reduces counterparty risk
• Audits
• Reliability (inter-system)
• Increases transactional security & data integrity
• Reduces duplications
• Eliminates reconciliations
• Reduces error rates
4. Integration Barrier
• FX trading – Bitcoin and other current blockchain technologies cannot
handle transaction volume which is why BigchainDB appears to be a
perfect solution.. (Refer to BigchainDB whitepapers for more
information)
5. Post-trade Data Example
• ICAP uses Blockchain for what they refer to as “golden source” data
needed for reporting trades to regulators as well as covering risk from
trades by posting the right amount of collateral or cash to clearing
houses. This avoid re-validation between systems making it a major
back & middle office benefit.
How it works:
ICAP uses multi-asset messaging on the Blockchain to trigger smart
contract creation and execution in real-time which increases security
and accuracy of post trade data
6. Settlements, Clearing, and Audits
• Reduce counterparty risk by enabling real-time settlements instead of
intra-day batch.
• Creates liquidity levels never before possible with T+3 settlement
Eliminates the need for..
• Clearing Houses
• Auditors (External/3rd party)
• Custodians
7. Issuing & Transferring Assets Example
• Linq by Nasdaq was developed to issue assets & automate share
management which results in exponentially reduced infrastructure
costs by being more efficient and self-auditing (secured & time
stamped)
8. Tracking Intellectual Property & Fraud Prevention
• By assigning a hash to IP that is recorded in a secured open ledger,
individuals and companies alike are enabled to show provenance
which can be used as a legal enforcement tool as well as easily grant
licensing permissions and track unauthorized usage & distribution of
property.
9. Tracking IP & Fraud Prevention Examples
Ascribe.io was created for artists and content producers to cost-effectively eliminate the friction in
IP registration, tracking, and enforcement. When a user uploads a unique piece of work it is hashed
into the Blockchain to show provenance and can be licensed to others for re-use, resale,
distribution, or transfer ownership in the event of a sale leaving behind an audit-trail throughout its
lifespan.
To take it a step further, Ascribe.io combined a proprietary web crawler with this technology to
automatically alert its users of unauthorized usage of their content across the internet.
This technology has already began being applied by others to track products within a supply chain,
manage big data monetization, and other forms of copyright anti-fraud enforcement.
A case study with Everledger was able to identify a 6% fraud rate for a diamond distributor &
pinpoint the areas of leakage within the supply chain which equated to over $7 billion in annually
fraud. This study was completed in under a 2 week timeframe.
10. Compliance: AML, KYC, and Reporting
• By increasing transactional transparency, companies are better able
to visualize, analyze, & assess high-risk transactions and react to them
faster.
• A secured, tamper-resistant ledger creates an immutable audit trail.
