Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Blockchain's Third Wave: Tokenization, Payments, and Atomic Settlement

362 views

Published on

Todd McDonald presents at Sibos 2019.

Published in: Technology
  • Be the first to comment

  • Be the first to like this

Blockchain's Third Wave: Tokenization, Payments, and Atomic Settlement

  1. 1. 11 Blockchain's Third Wave: Tokenization, Payments and Atomic Settlement Todd McDonald – SIBOS 2019
  2. 2. 1 Minute Bio: Todd McDonald, Chief Product Officer, R3 15 years an FX trader 2014/15: helped launch Enterprise blockchain company R3, with 40+ of the world’s largest financial institutions Open source platform Corda: 300+ firms using and building applications across banking, insurance, trade and more
  3. 3. A brief history of tokenization Installation Period Deployment Period Frenzy Synergy Maturity Irruption Turning Point (Financial Bubble) Bitcoin Ether & Altcoins Source: Technological Revolutions and Financial Capital by Carlota Perez Maturity of Previous Surge Real Business Value
  4. 4. Reminder of where blockchain can reach ‘product-market fit’ • When many participants need to reach consensus on a set of shared facts • When many participants need to share control over the evolution of shared facts • When there is a need for atomic value transfer • When there is a need to create provably-scarce digital assets (securities, money, identity…)
  5. 5. The digital asset and tokenization sweet spot • When many participants need to reach consensus on a set of shared facts • When many participants need to share control over the evolution of shared facts • When there is a need for atomic value transfer • When there is a need to create provably-scarce digital assets (securities, money, identity…)
  6. 6. *Including B2B cross border payments, KYC/AML management, Repo transactions and OTC Derivatives Shift from cost play to value creation $60-$80bn Annual cost savings across 4 use cases* -McKinsey $300-$400bn Economic value created by blockchain by 2027 -UBS $3.1tr Worldwide total business value added by blockchain by 2030 -Gartner
  7. 7. What now? Convergence of old and new world is happening… Don’t get left behind The right ecosystem exists… Work with a partner that can guide you and bring together the people, processes and technology When, not if... Regulators are catching up Don’t take shortcuts Banks & Regulators Delivery Expertise CorDapps Infrastructure R3 Ecosystem
  8. 8. Digital asset value chain Issuer Investor Issuance Registration Exchange Settlement Management
  9. 9. Digital asset value chain Issuer Investor Issuance Registration Exchange Settlement Management
  10. 10. Digital asset value chain Issuer Investor Issuance Registration Exchange Settlement Management
  11. 11. Extending new asset ledgers to existing settlement/payment Rails R3’s Corda Settler integrated with SWIFT gpi link Corda application for two parties to create an obligation for how and when they will settle their transaction https://www.r3.com/videos/swift-gpi-link-and-corda-settler- in-action/
  12. 12. Mastercard’s cross-border payments platform on Corda Harmonize Faster Payments schemes Global payments and FX on next gen payment platform Enable value added services and improved liquidity management
  13. 13. On-ledger value tokens Blockchains have inspired many types of ‘cash tokens’ across the risk/quality spectrum
  14. 14. On-ledger value tokens Blockchains have inspired many types of ‘cash tokens’ across the risk/quality spectrum
  15. 15. Wells Fargo Digital Cash: stablecoin-powered internal book transfer • Digital cash token (aka ‘stablecoin’) to move value between Wells Fargo entities cross border • Lowers costs, reduces transfer time, and improves service. • Built on an internal DLT network as first of many apps to be deployed (…on Corda Enterprise)
  16. 16. Tokens living on blockchain networks allow assets and value to: • Move more freely while maintaining regulatory compliance • Settle at their own speed • And keep everyone in sync during the whole journey
  17. 17. What to do next? GET THE RESEARCH Booth U134 www.r3.com/insights COME TO CORDACON Oct 23 – 24, London www.r3.com/cordacon CONTACT US: digital.assets@r3.com
  18. 18. London 2 London Wall Place, London, EC2Y 5AU Hong Kong Bonham Strand, 7F Office 18-121 Hong Kong www.r3.com Thank you Brazil Av. Angélica, 2529 - Bela Vista 6th Floor São Paulo - SP, 01153-000, Brazil New York 11 West 42nd Street, 8th Floor New York, NY 10036 Singapore 18 Robinson Road, Level #14-02 Singapore, 048547

×