Dan Halstead, Ivno, presents on BizDay at CordaCon 2019.

1. This content is for information purposes only and does not constitute financial, investment or other professional advice.
CordaCon ‘19
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2. Background &
Intro
2Invo Cordacon

3. Ivno Cordacon 3
100% feedback
Every single respondent that fed back said:
Instant settlement/collateral
management would significantly
improve their industry

4. • If asset tokenisation allows for peer-to-peer, instant atomic transfer – does that really solve
anything for institutions without tokenized cash?
• How could capital markets move toward instant settlement, is that even desirable?
• Is there cash asset that is high quality enough for settlement that could that be tokenised?
• Would the tokenisation of a cash asset also provide solution to some of the limitations of
the existing payment systems?
• What would be the legal and regulatory parameters relevant to these new services and
systems?
Ivno Cordacon 4
Early Questions:

5. Ivno Cordacon 5
Value on Chain
Digital value transfer without intermediary is revolutionary
Token design:
• Commercial Bank Backed?
• Off Chain Settlement?
• Central bank Digital Currency CDBC?
• Ivno’s approach?
1 independent advice should be sought on interpretation of cash and cash equivalent status under US GAAP
(FASB ASC paragraph 305-10-20), IFRS9 (IAS7) and UK GAAP (FRS102)
2 independent advice should be sought on interpretation of Directive 2013/36 EU and Regulation (EU) No. 575/2013

6. Ivno Cordacon 6
Market Research
Instant & Final Settlement
1 www.bain.com/insights/customer-experience-tools-blockchain/
2 www.bankofengland.co.uk/-/media/boe/files/working-paper/2017/the-economics-of-distributed-ledger-technology-for-securities-settlement
www.oliverwyman.com/content/dam/oliverwyman/global/en/2015/jun/TheFintech_2_0_Paper_Final_PV.pdf
Financial Executives surveyed by Bain in 2018 expect “DLT to have a big impact on
financial markets” and “81% said that they expected DLT’s impact on clearing and
settlement to be “transformative”.1
Increase in efficiency
Estimates range between US$2-4 billion of annual savings for standardising settlement alone2
Shorten Settlement Window
Summary results from cross-industry cost-benefit analysis of a shorter settlement cycle
Required investments
Annual operational cost savings
Annual value of Clearing Fund reductions
Reduction in risk exposure on unguaranteed buy-side trades
T+2
($550M)
$170M
$25M
Up to $200M
T+1
($1,770M)
$175M
$35M
Up to $410M

7. Ivno Cordacon 7
Effective Cash Transfer Problem Statement
• Counterparty Exposure
• Cash-in-transit
• Up/Down balances
In 24/7 global economy, global businesses should not be constrained by time zones, high
costs and inefficiencies when instructing settlement, transferring cash and moving
collateral.

8. Ivno Cordacon 8
Ivno Core Ideas
• Immobilising cash equivalent
collateral so that it does not move
lowers risk associated with
moving money.
• Passing beneficial ownership of
the immobilised collateral in
secure, instant tokens is simpler,
safer, cheaper and faster than
sending large value cash transfers
through the payment
infrastructure.
• Atomic settlement is only
desirable when the receiver of the
cash equivalent token instantly
becomes title holder to a very high
quality underlying asset,
something they can book in their
systems, and if needed easily
convert to cash.

9. Ivno Cordacon 9
Ivno Tokens
Designing a Collateral Backed Digital Token
1. Legal Structure. Legal enforceability
against underlying collateral.
2. Compliance with regulations including
but not limited to regulated activities,
KYC, AML and e-money
3. Underlying Collateral. Highly liquid
and transparent. Cash & Cash
Equivalent1 & Level 1 HQLA2
4. No introduction of Counterparty &
Credit Exposure. The quality of the
underlying asset cannot be
compromised by tokenisation.
5. Universal & Scalable Technology
1 independent advice should be sought on interpretation of cash and cash equivalent status under US GAAP
(FASB ASC paragraph 305-10-20), IFRS9 (IAS7) and UK GAAP (FRS102)
2 independent advice should be sought on interpretation of Directive 2013/36 EU and Regulation (EU) No. 575/2013

10. Ivno Cordacon 10
Ivno & R3 Partnership
• Partner Agreement Q4 ‘18
• Entrepreneur in residence Q1 ‘19
• R3 in Ivno’s Alpha Working Group Q1 ‘19
• Corda Enterprise Q3 ’19
• Announcement First Corda Token Trial Q4 ‘19

11. Ivno Cordacon 11
Ivno Global Trial ‘19
36 Nodes
28 organisations
18 countries
$18bn trial tokens
Over 1000 manual
transactions
Sub 1 second
transaction time, in a
multimode UAT
environment
100%consistent feedback
1. Asset backed tokens, and natively issued asset tokens have the
potential to reshape the landscape of financial services
2. Agreed with Ivno's ability to reduce settlement times and
counterparty exposure in Digital Asset Trading
3. Agreed with Ivno's ability to reduce complexity of value transfer
in [their respective businesses]
4. Exchange business model will change due to tokenisation, and
90% felt that the change would happen inside 5 years.
5. Exchanges would face competitive pressure from instant
settlement.”

12. Ivno Cordacon 12
Founding Customers
Industry Solutions

13. Disclaimer This document is for information purposes only and neither Ivno Limited nor its agents nor employees shall be liable for any third
party’s use of such information. The information given in this document is in summary form and does not purport to be complete. This document
shall not constitute financial, investment or other professional advice; it does not constitute an offer, solicitation or recommendation to acquire
or dispose of any investment or to engage in any other transaction. This document is not intended for solicitation purposes but only for use as
general information. All descriptions and examples contained in this document are for illustrative purposes only.
Thank you!
dan@ivno.io