The global bond market is in a stage where returns are muted and any efficiency will be a huge plus. While regulatory costs, transaction costs and issuance costs eat away a part of the meagre returns, continuous credit risk monitoring and lack of liquidity have been major concerns. The presentation looks at the nature of processes involved in the issuance and trading of bonds and identifies the pain points of the market participants. Then it discusses how we may come up with a solution for solving the bond market’s pain points by maintaining the market on an ecosystem of blockchains. A possible blockchain design for the market is described and the roles that the participants may play in the new ecosystem is elaborated. Blockchain’s inherent services help in
(1) Streamlining the issuance where all participants work in real time on common datasets and
(2) Trading of bonds by eliminating duplicative steps & shrinking the settlement cycle
The reduction in issuance time and settlement time, in turn, reduces market participant’s costs, risks and capital locked up. This solution design may have other positive side effects like improving liquidity, more transparency and easier asset servicing. The presentation concludes by looking at the evolving landscape and strategies that market players may adopt to stay in the forefront.
1) The document discusses a project by the OECD to analyze the implications of proliferating tokenization of assets for financial markets. It aims to understand benefits and challenges, disruptive effects, and policy implications.
2) Tokenization refers to using blockchain or distributed ledger technology to issue tokens representing ownership of real-world assets. This could streamline clearing and settlement by reducing intermediaries.
3) Tokenization may improve liquidity for illiquid assets and increase retail access but also risks market fragmentation and gaps in regulation. Policymakers should address potential issues and facilitate standardization where tokenization provides clear benefits.
Asset Tokenization as an Industry Game ChangerJongseung Kim
This document discusses asset tokenization and its potential as an industry game changer. It provides examples of several blockchain startups that are tokenizing different types of real-world assets like real estate, utilities, commodities, and traditional financial assets. The benefits of asset tokenization include increased liquidity, fractional ownership models, risk diversification, and reduced costs. However, there are also challenges around ensuring trusted issuers, addressing the current regulatory vacuum, establishing legal enforceability of property rights via tokens, and developing solutions for issues like digital identity, asset valuations, and technology limitations. Overall, asset tokenization has significant growth opportunities if the remaining technical and legal questions can be resolved.
8 Decimal Capital is a blockchain investment firm with $60 million AUM that focuses on security token projects. The presentation discusses why security tokens are focusing on asset-backed tokens, tokenized VC funds, share-like tokens, and crypto-bonds. It also outlines 8 Decimal Capital's investment criteria and provides an example of a potential security token issuance for a tourism company. The presentation concludes with contact information for 8 Decimal Capital.
Upvest's view on the state of asset tokenization in Germany/Europe. It is a high-level overview for a broader audience, summarizing our learnings of two years in the asset tokenization industry.
Check out more info on: https://upvest.co
The document discusses tokenizing real estate assets using security tokens. It outlines the benefits of tokenization such as increased liquidity, fractional ownership, and portfolio diversification. It then provides an overview of the key components of setting up a real estate security token offering, including deal structuring, technology selection, the token creation process, and ongoing governance.
8 Decimal Capital Security Token Industry OverviewKadeemClarke3
8 Decimal Capital, a leading fund in the blockchain venture capital space, has begun focusing on security tokens (STs) and security token offerings (STOs). We believe this new technology will revolutionize the financial industry and how assets are managed and traded.
This document analyzes Security Token Offerings (STOs), which differ from Initial Coin Offerings (ICOs) in that STOs represent investments while ICOs focus on cryptocurrencies or utility tokens. The authors find that STO activity developed after the ICO bubble, with the STO market still nascent. STOs are geographically dispersed but concentrated in jurisdictions with accommodating securities laws. Correlations were found between STO funding success and good governance practices, as well as factors known to influence ICO success like having a GitHub presence. The high failure rate indicates the STO market remains in its early stages.
A security token offering (STO) is a new trend in the cryptocurrency market that is gaining its stronghold because of regulations that value the external liquidized assets for which it is created. The intervention of regulations creates a sense of trust among the investors who need profits from the project that they have invested in.
http://bit.ly/2PnecBo
1) The document discusses a project by the OECD to analyze the implications of proliferating tokenization of assets for financial markets. It aims to understand benefits and challenges, disruptive effects, and policy implications.
2) Tokenization refers to using blockchain or distributed ledger technology to issue tokens representing ownership of real-world assets. This could streamline clearing and settlement by reducing intermediaries.
3) Tokenization may improve liquidity for illiquid assets and increase retail access but also risks market fragmentation and gaps in regulation. Policymakers should address potential issues and facilitate standardization where tokenization provides clear benefits.
Asset Tokenization as an Industry Game ChangerJongseung Kim
This document discusses asset tokenization and its potential as an industry game changer. It provides examples of several blockchain startups that are tokenizing different types of real-world assets like real estate, utilities, commodities, and traditional financial assets. The benefits of asset tokenization include increased liquidity, fractional ownership models, risk diversification, and reduced costs. However, there are also challenges around ensuring trusted issuers, addressing the current regulatory vacuum, establishing legal enforceability of property rights via tokens, and developing solutions for issues like digital identity, asset valuations, and technology limitations. Overall, asset tokenization has significant growth opportunities if the remaining technical and legal questions can be resolved.
8 Decimal Capital is a blockchain investment firm with $60 million AUM that focuses on security token projects. The presentation discusses why security tokens are focusing on asset-backed tokens, tokenized VC funds, share-like tokens, and crypto-bonds. It also outlines 8 Decimal Capital's investment criteria and provides an example of a potential security token issuance for a tourism company. The presentation concludes with contact information for 8 Decimal Capital.
Upvest's view on the state of asset tokenization in Germany/Europe. It is a high-level overview for a broader audience, summarizing our learnings of two years in the asset tokenization industry.
Check out more info on: https://upvest.co
The document discusses tokenizing real estate assets using security tokens. It outlines the benefits of tokenization such as increased liquidity, fractional ownership, and portfolio diversification. It then provides an overview of the key components of setting up a real estate security token offering, including deal structuring, technology selection, the token creation process, and ongoing governance.
8 Decimal Capital Security Token Industry OverviewKadeemClarke3
8 Decimal Capital, a leading fund in the blockchain venture capital space, has begun focusing on security tokens (STs) and security token offerings (STOs). We believe this new technology will revolutionize the financial industry and how assets are managed and traded.
This document analyzes Security Token Offerings (STOs), which differ from Initial Coin Offerings (ICOs) in that STOs represent investments while ICOs focus on cryptocurrencies or utility tokens. The authors find that STO activity developed after the ICO bubble, with the STO market still nascent. STOs are geographically dispersed but concentrated in jurisdictions with accommodating securities laws. Correlations were found between STO funding success and good governance practices, as well as factors known to influence ICO success like having a GitHub presence. The high failure rate indicates the STO market remains in its early stages.
A security token offering (STO) is a new trend in the cryptocurrency market that is gaining its stronghold because of regulations that value the external liquidized assets for which it is created. The intervention of regulations creates a sense of trust among the investors who need profits from the project that they have invested in.
http://bit.ly/2PnecBo
[Cryptica 22] Finspot: A real-world asset tokenization in practice - Jovan Mi...DataScienceConferenc1
The idea behind this talk is to walk the audience through all the aspects of a real-world asset tokenization (RWA) project that is developed from scratch and is in production. The presentation will review the following topics: The need behind the project, technological aspects of token creation and issuance, Finspot token tokenomics, real-life challenges along the way (regulation, market awareness), achieved results, how is the data going to affect the next token design, as well as a look into the future - what are the trends?
An Introduction to Blockchain Technology Niuversity
Blockchain technology allows for a shared, replicated ledger of transactions that can be viewed by all participants. It enables peer-to-peer exchanges on a distributed network in a secure and non-repudiable way. Blockchain solves issues with monitoring asset ownership and transfers in a trusted business network by providing a permissioned, replicated shared ledger. It is not just for cryptocurrencies like Bitcoin but can be used for any form of asset registry, inventory, and exchange across different industries. The future potential of blockchain applications is still emerging as it will be applied experimentally to many aspects of society over the next few years.
The IMF has warned that independent cryptocurrencies could destabilize traditional economic systems and has suggested countries digitize their own currencies instead to maintain control over money supply and regulation. Many central banks are now rushing to digitize their currencies after initially studying stablecoins, or digital currencies backed by traditional currencies, to gather more data on digital forms of money.
Blockchain technology is a distributed ledger platform that provides open and transparent transaction information with integrity and non-repudiation based on modern cryptography. It is also the technology behind many cryptocurrencies. This presentation will give fundamental knowledge on how blockchain works, its cryptography implementation, cryptocurrency definition and related terms and also blockchain use cases.
Some thoughts on the recent trends in token crowdsales, presented to Siam Commercial Bank's top management as part of Digital Ventures' briefings on latest trends in the Fintech world.
Blockchain in capital markets and structured financeEY
The blockchain concept has generated a considerable amount of attention within capital markets, with discussions expanding into practical applications in securitization. Explore considerations around the application of blockchain in capital markets and the proposed applications of blockchain in structured finance.
This document discusses tokenomics and creating token strategies for blockchain applications. It provides examples of different types of tokens like currency, asset-backed, and equity tokens. Sample ERC-20 token code is shown, as well as examples of single and dual token strategies. Key considerations for tokenizing a decentralized application are outlined, and an example tokenomics document is presented for an e-health application called E-Nome. Large technology companies and their investments in blockchain are also briefly mentioned.
The document provides an overview of decentralized finance (DeFi) including common terms and applications. It discusses how DeFi allows for lending, borrowing, and farming of crypto assets using smart contracts in a permissionless and trustless manner. Specific DeFi applications mentioned include stablecoins, automated market makers, liquidity pools, yield farming, lending platforms, decentralized exchanges, flash loans, and the composability of combining different DeFi building blocks.
This document discusses how blockchain technology can be used to tokenize real estate assets and overcome challenges in the real estate industry like fraud, high costs, and lack of liquidity. It outlines the process for onboarding property onto the blockchain to be fractionalized and traded as tokens. This allows for monetizing property management and creating new real estate investment opportunities through fractional ownership of assets. Regulatory approval and building an ecosystem of partners will be important to advance the adoption of this new model.
- Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks (L2 Scaling Solution and Infrastructure Development).
- It aims to be a "Swiss army knife" for scaling Ethereum and developing infrastructure by supporting various scaling solutions like Plasma, zkRollups, and sidechains to turn Ethereum into a multichain system.
- It has seen significant growth in its developer community and use cases like NFTs, gaming, and DeFi due to its very low transaction fees and fast transaction speeds of around 2 seconds.
Cryptocurrencies: The Mechanics Economic and FinanceErnie Teo
Presented at the INAUGURAL CAIA-SKBI CRYPTOCURRENCY CONFERENCE 2014 on 04 November 2014 held at the Singapore Management University
This talk gives a general overview of Bitcoin and other cryptocurrencies.
This document summarizes key aspects of initial coin offerings (ICOs) and blockchain technology. It discusses past failures and successes of digital currencies like E-gold and Bitcoin. It then explains that blockchains provide trust through cryptography, immutability, and distribution. Smart contracts enable automated transactions through secured ledgers. ICOs allow startups to raise funds by selling tokens to investors. Security and risks are important considerations for running a successful ICO. Tokenization could expand the use of blockchains to represent real-world assets.
The document provides an overview of Bitcoin, including its history, key concepts, and technical aspects. It discusses how Bitcoin works as a decentralized digital currency using blockchain technology. Some key points covered include how Bitcoin is sent through peer-to-peer transactions, the role of miners in verifying transactions and creating new blocks, and how wallets are used to store public/private keys and interact with the Bitcoin network.
This document discusses stablecoins, which are cryptocurrencies designed to maintain price stability. It defines stablecoins as cryptocurrencies collateralized by underlying assets to minimize volatility. Stablecoins are used for hedging against cryptocurrency price fluctuations, transferring funds between exchanges, and lending on cryptocurrency markets. The main types of stablecoins are asset-backed off-chain coins collateralized by fiat currencies, asset-backed on-chain coins backed by cryptocurrencies, and non-collateralized algorithmic coins. Popular stablecoins discussed include Tether, USD Coin, and Dai. The document also outlines stablecoin projects specific to Singapore like SGDR and StraitsX.
An Investor's Guide to Web3 / Crypto / BlockchainBernard Leong
Bernard Leong provided a masterclass on investing in web3. He discussed his own journey in crypto from 2008 to present. He covered the basics of blockchain, different layers and applications. Leong outlined tools for due diligence like Etherscan and Nansen AI. He explained financing models for web3 startups and factors to consider like tokenomics, go-to-market strategies, and regulatory risks. Finally, Leong proposed a model for a $1M web3 angel fund focusing on DeFi, gaming, and SaaS with a mix of angel investing and trading strategies.
Cryptocurrencies like Bitcoin emerged from the invention of blockchain technology, which allows for a decentralized digital ledger system without a central authority. The first cryptocurrency, Bitcoin, was created in 2008 by Satoshi Nakamoto as a peer-to-peer electronic cash system without central control. Cryptocurrencies use cryptography to securely record transactions on distributed ledgers called blockchains, preventing double spending without central servers. Their values are determined by the market rather than controlled by governments.
Introduction to Solidity and Smart Contract Development (9).pptxGene Leybzon
Here is a suggested learning path for getting started with blockchain and smart contracts development:
1. Learn the fundamentals of blockchain technology - how it works, key components, types of blockchains.
2. Understand cryptography basics - hashes, digital signatures, public/private key encryption.
3. Learn the Solidity programming language for writing Ethereum smart contracts.
4. Build simple smart contracts and deploy them to testnets.
5. Learn how to develop decentralized applications (dApps) using smart contracts.
6. Explore blockchain development platforms like Ethereum, Hyperledger, etc.
7. Learn frontend libraries like Web3.js for interacting with blockchains.
8.
This document discusses clearing and settlement in financial transactions and how blockchain can improve the process. It begins by explaining that clearing and settlement refers to transferring ownership of assets after a trade is executed. It currently relies on information flowing between various parties like brokers, exchanges, and banks. Blockchain uses smart contracts to automate clearing and settlement by encoding the asset, terms, and triggering automatic transfers of ownership and funds on the blockchain in minutes rather than days. This reduces complexity and risk compared to traditional methods that take longer and rely more on intermediaries. Blockchain also enables instant cross-border transactions regardless of geography or currency.
The document summarizes the development of bond markets in South Korea, specifically the government bond market and corporate bond market. It describes how the government bond market grew significantly after the 1997 Asian Financial Crisis to finance public funds and stimulate the depressed economy. It discusses reforms to develop the market such as establishing a primary dealer system and introducing futures trading. It also outlines the growth of the corporate bond market, credit shocks it experienced, and regulatory reforms implemented in response around transparency, ratings agencies, and asset-backed securities.
[Cryptica 22] Finspot: A real-world asset tokenization in practice - Jovan Mi...DataScienceConferenc1
The idea behind this talk is to walk the audience through all the aspects of a real-world asset tokenization (RWA) project that is developed from scratch and is in production. The presentation will review the following topics: The need behind the project, technological aspects of token creation and issuance, Finspot token tokenomics, real-life challenges along the way (regulation, market awareness), achieved results, how is the data going to affect the next token design, as well as a look into the future - what are the trends?
An Introduction to Blockchain Technology Niuversity
Blockchain technology allows for a shared, replicated ledger of transactions that can be viewed by all participants. It enables peer-to-peer exchanges on a distributed network in a secure and non-repudiable way. Blockchain solves issues with monitoring asset ownership and transfers in a trusted business network by providing a permissioned, replicated shared ledger. It is not just for cryptocurrencies like Bitcoin but can be used for any form of asset registry, inventory, and exchange across different industries. The future potential of blockchain applications is still emerging as it will be applied experimentally to many aspects of society over the next few years.
The IMF has warned that independent cryptocurrencies could destabilize traditional economic systems and has suggested countries digitize their own currencies instead to maintain control over money supply and regulation. Many central banks are now rushing to digitize their currencies after initially studying stablecoins, or digital currencies backed by traditional currencies, to gather more data on digital forms of money.
Blockchain technology is a distributed ledger platform that provides open and transparent transaction information with integrity and non-repudiation based on modern cryptography. It is also the technology behind many cryptocurrencies. This presentation will give fundamental knowledge on how blockchain works, its cryptography implementation, cryptocurrency definition and related terms and also blockchain use cases.
Some thoughts on the recent trends in token crowdsales, presented to Siam Commercial Bank's top management as part of Digital Ventures' briefings on latest trends in the Fintech world.
Blockchain in capital markets and structured financeEY
The blockchain concept has generated a considerable amount of attention within capital markets, with discussions expanding into practical applications in securitization. Explore considerations around the application of blockchain in capital markets and the proposed applications of blockchain in structured finance.
This document discusses tokenomics and creating token strategies for blockchain applications. It provides examples of different types of tokens like currency, asset-backed, and equity tokens. Sample ERC-20 token code is shown, as well as examples of single and dual token strategies. Key considerations for tokenizing a decentralized application are outlined, and an example tokenomics document is presented for an e-health application called E-Nome. Large technology companies and their investments in blockchain are also briefly mentioned.
The document provides an overview of decentralized finance (DeFi) including common terms and applications. It discusses how DeFi allows for lending, borrowing, and farming of crypto assets using smart contracts in a permissionless and trustless manner. Specific DeFi applications mentioned include stablecoins, automated market makers, liquidity pools, yield farming, lending platforms, decentralized exchanges, flash loans, and the composability of combining different DeFi building blocks.
This document discusses how blockchain technology can be used to tokenize real estate assets and overcome challenges in the real estate industry like fraud, high costs, and lack of liquidity. It outlines the process for onboarding property onto the blockchain to be fractionalized and traded as tokens. This allows for monetizing property management and creating new real estate investment opportunities through fractional ownership of assets. Regulatory approval and building an ecosystem of partners will be important to advance the adoption of this new model.
- Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks (L2 Scaling Solution and Infrastructure Development).
- It aims to be a "Swiss army knife" for scaling Ethereum and developing infrastructure by supporting various scaling solutions like Plasma, zkRollups, and sidechains to turn Ethereum into a multichain system.
- It has seen significant growth in its developer community and use cases like NFTs, gaming, and DeFi due to its very low transaction fees and fast transaction speeds of around 2 seconds.
Cryptocurrencies: The Mechanics Economic and FinanceErnie Teo
Presented at the INAUGURAL CAIA-SKBI CRYPTOCURRENCY CONFERENCE 2014 on 04 November 2014 held at the Singapore Management University
This talk gives a general overview of Bitcoin and other cryptocurrencies.
This document summarizes key aspects of initial coin offerings (ICOs) and blockchain technology. It discusses past failures and successes of digital currencies like E-gold and Bitcoin. It then explains that blockchains provide trust through cryptography, immutability, and distribution. Smart contracts enable automated transactions through secured ledgers. ICOs allow startups to raise funds by selling tokens to investors. Security and risks are important considerations for running a successful ICO. Tokenization could expand the use of blockchains to represent real-world assets.
The document provides an overview of Bitcoin, including its history, key concepts, and technical aspects. It discusses how Bitcoin works as a decentralized digital currency using blockchain technology. Some key points covered include how Bitcoin is sent through peer-to-peer transactions, the role of miners in verifying transactions and creating new blocks, and how wallets are used to store public/private keys and interact with the Bitcoin network.
This document discusses stablecoins, which are cryptocurrencies designed to maintain price stability. It defines stablecoins as cryptocurrencies collateralized by underlying assets to minimize volatility. Stablecoins are used for hedging against cryptocurrency price fluctuations, transferring funds between exchanges, and lending on cryptocurrency markets. The main types of stablecoins are asset-backed off-chain coins collateralized by fiat currencies, asset-backed on-chain coins backed by cryptocurrencies, and non-collateralized algorithmic coins. Popular stablecoins discussed include Tether, USD Coin, and Dai. The document also outlines stablecoin projects specific to Singapore like SGDR and StraitsX.
An Investor's Guide to Web3 / Crypto / BlockchainBernard Leong
Bernard Leong provided a masterclass on investing in web3. He discussed his own journey in crypto from 2008 to present. He covered the basics of blockchain, different layers and applications. Leong outlined tools for due diligence like Etherscan and Nansen AI. He explained financing models for web3 startups and factors to consider like tokenomics, go-to-market strategies, and regulatory risks. Finally, Leong proposed a model for a $1M web3 angel fund focusing on DeFi, gaming, and SaaS with a mix of angel investing and trading strategies.
Cryptocurrencies like Bitcoin emerged from the invention of blockchain technology, which allows for a decentralized digital ledger system without a central authority. The first cryptocurrency, Bitcoin, was created in 2008 by Satoshi Nakamoto as a peer-to-peer electronic cash system without central control. Cryptocurrencies use cryptography to securely record transactions on distributed ledgers called blockchains, preventing double spending without central servers. Their values are determined by the market rather than controlled by governments.
Introduction to Solidity and Smart Contract Development (9).pptxGene Leybzon
Here is a suggested learning path for getting started with blockchain and smart contracts development:
1. Learn the fundamentals of blockchain technology - how it works, key components, types of blockchains.
2. Understand cryptography basics - hashes, digital signatures, public/private key encryption.
3. Learn the Solidity programming language for writing Ethereum smart contracts.
4. Build simple smart contracts and deploy them to testnets.
5. Learn how to develop decentralized applications (dApps) using smart contracts.
6. Explore blockchain development platforms like Ethereum, Hyperledger, etc.
7. Learn frontend libraries like Web3.js for interacting with blockchains.
8.
This document discusses clearing and settlement in financial transactions and how blockchain can improve the process. It begins by explaining that clearing and settlement refers to transferring ownership of assets after a trade is executed. It currently relies on information flowing between various parties like brokers, exchanges, and banks. Blockchain uses smart contracts to automate clearing and settlement by encoding the asset, terms, and triggering automatic transfers of ownership and funds on the blockchain in minutes rather than days. This reduces complexity and risk compared to traditional methods that take longer and rely more on intermediaries. Blockchain also enables instant cross-border transactions regardless of geography or currency.
The document summarizes the development of bond markets in South Korea, specifically the government bond market and corporate bond market. It describes how the government bond market grew significantly after the 1997 Asian Financial Crisis to finance public funds and stimulate the depressed economy. It discusses reforms to develop the market such as establishing a primary dealer system and introducing futures trading. It also outlines the growth of the corporate bond market, credit shocks it experienced, and regulatory reforms implemented in response around transparency, ratings agencies, and asset-backed securities.
Nasser Khan is a seasoned leader with over 21 years of experience in professional services and industry. He specializes in governance, risk, and compliance (GRC) and has extensive experience implementing GRC systems and managing audit operations. Nasser has led business-critical implementations and risk assessments. He is skilled in application and infrastructure security, controls, and regulatory compliance.
Blockchain has the potential to help solve banks' Know Your Customer (KYC) and anti-money laundering (AML) challenges by creating an immutable shared ledger for customer identity information. This could reduce duplication of KYC checks across banks and allow for real-time updates to customer details. However, key questions remain around who would validate updates to the ledger and whether a central party is still needed. A blockchain-based digital identity system may provide even greater benefits by allowing customers to submit documentation once and share identity details across industries, improving security, transparency and reducing costs for banks. Ultimately it is unclear how blockchain may evolve in solving KYC, whether as a single centralized registry, private blockchains, or a
Investment Thesis on Distributed Ledger Technology in the Financial SystemEmre Tekisalp
An investment thesis from the point of view of venture capital funds, developed as part of Columbia Business School Venture Fellows Program. This presentation looks at what transaction related problems the financial system currently faces, how different startups working on distributed ledger technologies (such as Blockchain) are proposing to solve this problem, and how the author believes the future will unfold.
This is the comprehensive and latest presentation on Indian Corporate Bond market. It starts with basic features, 3 Main pillars of Indian Corp bond market ecosystem & its importance. It then covers Primary Placement, Valuation/MTM as per RBI/FIMMDA norms, Valuation using excel IRR() function with example, Credit rating scales, Market timing & Reporting.
It also covers few topics like ISIN & ends with challenges and Limitation of India corp bond market.
Blockchain has evolved from being used exclusively for bitcoin (Blockchain 1.0) to also enabling contracts (Blockchain 2.0) to now supporting applications beyond finance (Blockchain 3.0). Major industry consortia like Hyperledger, R3CEV, and others are working on blockchain applications. Blockchains can provide critical operational improvements like reducing reconciliation costs between disparate financial systems from $15-20B by 2022. Blockchain is now being applied in areas like cross-border payments, private securities exchanges, and replacing stock settlement systems to improve post-trade processing.
This document provides a background on the European securities landscape and examines the potential role of blockchain/distributed ledger technology in further harmonizing the post-trade landscape in Europe. It begins with an overview of the key actors and processes in securities trading, clearing, settlement and custody. It then discusses past harmonization initiatives and remaining barriers. Blockchain/DLT concepts are introduced, along with literature reviewing their potential application to post-trade processes. Interviews with industry experts are analyzed to discuss the impact of DLT on further harmonization efforts. The conclusion examines how blockchain could help reduce costs and inefficiencies while working within existing regulations.
Costco acquires Target in an all-stock deal valued at $56 billion. Under the terms of the agreement, Target shareholders will receive 0.62 Costco shares for each Target share. The deal is structured as a tax-free reverse triangular merger. The acquisition is expected to generate $1 billion in annual synergies by increasing Target's return on equity from 9.4% to 14%. Target will operate as a subsidiary of Costco and retain its name and management team. The deal requires approval from both companies' shareholders.
The document discusses accounting for non-current liabilities such as bonds payable and long-term notes payable. It covers topics such as issuing long-term debt, types of bond issues, valuation of bonds at issuance, accounting for bond discounts and premiums using the effective interest method, and accounting for extinguishment of non-current liabilities.
ToolzDo.com is a newly launched website that allows users to rent, swap, share, or give away goods, tools, equipment and other items within their local communities. This helps users save money and resources by accessing items they need from neighbors. The site aims to foster cooperative living and bring physical connections back to neighborhoods while also helping reduce waste. It combines traditional cooperative spirit with modern search tools to make sharing resources easy.
The document discusses important considerations for designing early childhood education spaces and room layouts. It emphasizes that:
1) A well-designed space can greatly influence children's development, engagement, security, and care. The layout should guide and inspire children's behavior.
2) Key aspects of a good space include predictability, clear paths, well-defined boundaries, freedom to explore, privacy, variety, flexibility, appropriate stimulation, and a supportive environment.
3) When planning activity areas, factors like location, boundaries, surfaces, storage, and mood should be considered to best support children's discovery and self-directed learning.
El documento discute diferentes enfoques de liderazgo moderno, incluyendo el liderazgo transformacional, estratégico, de servicio, basado en valores y carismático. Explica las características clave de cada enfoque y concluye que conocer diferentes estilos de liderazgo permite aplicar el más adecuado según las circunstancias para lograr los objetivos de la organización.
This document outlines the steps for a Florida 4-H Photo Contest Loan Program, which acquires winning photos from the contest and loans them to legislators to display in their offices, including acquiring and framing the photos, contacting legislators to arrange display of photos from their districts, delivering and picking up the framed photos, and promoting the program to counties and youth.
The document provides tips for including children with special needs in church activities, such as talking to families about children's needs, providing choices, maintaining routines, using visual aids, giving one instruction at a time, minimizing overstimulation, incorporating multi-sensory activities, and providing encouragement. It also recommends designating one-to-one support and having a quiet space available. Finally, it lists some useful websites for additional resources on supporting children with special needs.
Time management is an essential skill for success. It involves analyzing how time is currently spent, identifying time wasters, setting goals and priorities, and creating a schedule to efficiently complete tasks. Effective time management allows one to be more productive, reduce stress, improve self-esteem, and balance one's life. While time cannot be saved, proper use through time management techniques can help achieve goals and maximize productivity within the 24 hours everyone is given each day.
Commodities and Blockchain - Distributed Ledger Technology GE 94
This document summarizes the potential applications of blockchain and distributed ledger technology for commodity markets. It discusses how blockchain could be used to improve provenance and tracking of assets, commodity trade finance through more secure recordkeeping of asset ownership, and electricity trading through decentralized peer-to-peer markets. The document also outlines how blockchain could streamline post-trade processes like clearing and settlement for over-the-counter derivatives through distributed networks that reduce costs, risks, and inefficiencies compared to centralized clearinghouses. However, it notes that blockchain remains an emerging technology with open questions around its scalability, privacy, security and regulation.
Keynote presentation at the HUBB Conference.
Adj Prof Mascarella clarifies terms, mechanisms and what is the roadmap to use innovation for new business.
Trade Receivables Discounting System - M1 Exchangem1exchange
The document provides an overview of M1 Exchange, an online platform for trade receivables discounting in India approved by the Reserve Bank of India. It discusses key participants like MSME suppliers, large corporate buyers, and financiers/banks. The platform allows suppliers to receive early payment on invoices through bidding among multiple financiers. It also details the invoice discounting and reverse factoring processes, benefits to participants, and the management team behind M1 Exchange.
The Blockchain: Capital Markets Use Cases. @GreySparkUK
GreySpark Partners presenta un informe, el Blockchain: Capital Markets casos de uso, examinando cómo los bancos de inversión y otras empresas de los mercados financieros potencialmente podrían utilizar la tecnología distribuida libro mayor (DLT) en el futuro. El informe caracteriza a una amplia variedad de diferentes formas de aplicaciones blockchain siendo desarrollado por Fintech empresas de nueva creación a nivel mundial, y se analiza cómo estas aplicaciones podrían eventualmente ser utilizadas por los participantes en los mercados de capital como medio de sustitución de los sistemas de front y back-office existentes y procesos dentro de la buyside y la sellside.
Blockchain in Banking: A Measured ApproachCognizant
Here's our foundational view on what the financial services industry needs to consider as organizations move from ideation to experimentation to pilot deployments of blockchain.
Blockchain is a shared, immutable ledger that can record transactions and track assets in business networks. It allows companies to share records and establish trust without the need for a central authority. IBM's blockchain platform uses Hyperledger Fabric to develop applications that provide benefits like reduced costs, improved traceability and data sharing between organizations. It can help industries like finance, supply chain and healthcare by creating transparency and efficiency in business processes.
Blockchain Technology in Banking Services - A ReviewGokul Alex
My session for IIM Bengaluru for the Executive Leaders of Public Sector Banks in India about the principles, paradigms, platforms, protocols and potentials of Blockchain Technology in 2020.
How Blockchain Can Revitalize Trade Finance (Part 1)Cognizant
As a new way to secure the transfer of value, blockchain technology promises to increase collaboration, automation and oversight in trade finance transactions.
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2021
See more at https://www.financialpoise.com/webinars/
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2022
See more at https://www.financialpoise.com/webinars/
This document discusses how blockchain technology can be used to improve the car leasing business network. It describes the current inefficient system where each participant maintains their own private ledgers, leading to slow, error-prone synchronization. Blockchain allows for a shared, distributed ledger that gives all participants visibility into the single system of record. This increases trust, reduces costs and risks compared to the current methods. Specific benefits highlighted include improved traceability, more efficient auditing and regulatory compliance, and near real-time execution of transactions like letters of credit.
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UK: https://www.amazon.co.uk/dp/B09T2ND42B
Germany: https://www.amazon.de/dp/B09T2ND42B
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Blockchain Solution for the Global Bond Markets
1. Presented by Prajeesh Jayaram in November 2016
BLOCKCHAIN SOLUTION FOR THE GLOBAL
BOND MARKETS
ISSUANCE AND TRADING OF BONDS ON
DECENTRALISED PERMISSIONED LEDGERS
PRESENTED AT
FINANCIAL INNOVATION SUMMIT 2016, MUMBAI, INDIA
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
2. Use cases in Financial Services
Payments & remittances
Issuance, ownership & transfer of securities
Audit trail, AML & regulatory reporting
KYC & other aggregations
2
BLOCKCHAIN
Services provided
Consensus
Uniqueness
Validity
Immutability
Authentication
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM
A transaction database that is
replicated, immutable, encrypted
and edited by consensus driven
collaboration
Technologies coming together
P2P Networks
Cryptography – Hashing, Digital
Signatures, Encryption
Distributed Systems and Consensus
Use Cases Models
Financial systems
Provenance tracking
Record keeping
Multi-party aggregation
3. Present Processes and Pain Points
Possible Solution and the Future
Issuing and Trading on Blockchain
Benefits and Adoption Strategy
AGENDA
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 3
4. BOND ISSUANCE PROCESS
Mutually-untrusting stakeholders playing specialized roles
Consensus, information sharing, negotiation and authorization
A shared repository of information, documentation
Issue Post Launch - Intermediaries’ services throughout the life
Depositories, Registrars, Custodians - record keeping and reconciliation
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 4
Comments
reporting
ISIN
Issuer
Investors
Rating Agency
Merchant Banker
Trustee Depository Exchange
Back Office
/ Custodian
Registrar
Regulator
Escrow Bank A/C
Bond Prospectus
Business, financial info
Credit rating
Security / collateral details
Term-sheet
Favourable
Terms
Consensus terms
Favourable
terms
Due diligence Instructions
Legal Counsel
Vetting/compliance check
Application form
& bidding
Application money
ISIN creation
Allotment
Charge
Favourable terms
Allotment
Marketing
Involves creating, sharing,
reviewing and approving
information and documentation
between multiple mutually-
untrusting stakeholders
5. BOND MARKET TRANSACTION
Trading: Mature, secure and efficient process using the best in technology
OTC broker or a Order Matching System
Clearing: Central Counterparty manages DVP and counterparty risk;
Custodian, Clearing Bank, Depository, Registrar - revenue of $40 billion in 2013^
Settlement: Netting of obligations and T+2 settlement (mostly)
Capital is tied up, ticketing charges, IT overheads and staff costs
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 5
Buyer Seller
DepositoryBack Office
Regulator
Term-sheet
Instructions
Funds Blocked
Buy
Exchange
Back Office
Broker Broker
Registrar
Central
Counterparty
Custodian Custodian
Buy Sell Sell
Instructions
Confirm
Confirmation
Confirm
Securities Blocked
Affirmation
Transfer
Funds Credited
Funds CreditedSecurities Credited
Securities Credited
Pre-trade evaluation Pre-trade evaluation
Clearing Bank
Issuer
Investor Servicing
Multiple copies of the
same transaction
information separately
maintained and
reconciled by
intermediaries
^ Source: Oliver Wyman Research
6. PAIN POINTS IN BOND MARKETS
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 6
Costs
• Transaction costs - $26 billion for US bonds in 2015
• Regulatory costs - $12 billion for KYC/AML in 2013
• Issuance costs and asset servicing costs
Risks
• Monitoring credit risk continuously; trusting ratings
• Liquidity - Fragmented market and capital constraints
• Counterparty risk and op risk – settlement errors & disputes
Delayed
Settlement
7. Pain Points and Present Processes
Possible Solution and the Future
AGENDA
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 7
8. Check Appropriateness
Bond TradingBond Issuance
APPROPRIATE SOLUTION?
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 8
creating, sharing,
reviewing and
approving information
between multiple
mutually-untrusting
stakeholders
multiple copies of the
same transaction
information separately
maintained and
reconciled by
intermediaries
• Shared Repository?
• Multiple Writers?
• Mutually Untrusting?
• Avoid Central Intermediary?
• Interacting Transactions?
9. APPROPRIATE SOLUTION..
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 9
The Asks
Hygiene factors
Security Scalability
Confidentiality Performance
Regulatory
Compliance
10. APPROPRIATE SOLUTION…
Regulated permissioned replicated ledger for each bond issue
All info from pre-issue to maturity maintained as chained transaction blocks
Identifiable digital bond tokens
Denominated in on-chain currency
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 10
Issuance Ownership
Risk
Monitoring Trading Servicing Reporting
The Design
Comprehensive
shared information
and value ledger
Market
Participants are
part of multiple
blockchains
Issuer
Investors
Intermediaries
Regulator
Bond Blockchain 1
Bond Blockchain 2
Market Infra Blockchain
11. Shared Databases
BUILDING THE BOND MARKET
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 11
Network Layer - nodes, shared data and communication protocols
Separate permissioned blockchains for each bond
Market Infrastructure networks / blockchains; Gatekeepers
Apps used by market participants
Exchange Bond 1 Bond 2KYC Bond 3
Network Layer Issuer Investor Intermediaries Regulator
Bond Market Building Blocks
Payment
Applications Asset Servicing Watchlist Wallet KYC CheckSupervisory
12. Genesis
Issuer creates
permissioned
private consortium
blockchain for a
new bond issue.
Regulator as
supervisor by
default
Pre-Issue
Issuer adds
intermediaries
(Banks, rating
agencies, trustees,
Legal etc.) for pre-
issue process,
documentation,
authoring digital
bond and issuance
IssueLaunch
Regulator
approves
documentation
and digital bond,
private blockchain
becomes
permissioned and
open for
subscription
Trading
Intermediaries
participating in
transaction
processing
execute
transactions and
store the
information on the
blockchain
AssetServicing
The blockchain
may have logic to
execute fund
transfers for
coupon payment
and redemptions.
Bondholding can
be derived from
the blockchain
Archiving
Blockchain
archived on
maturity,
conversion or
bankruptcy of the
issuer. This archive
includes all the
information about
the bond and its
transactions
BUILDING THE BOND BLOCKCHAIN
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 12
Issuer
InvestorsIntermediariesRegulator
A blockchain to record the bond’s entire life
13. THE MARKET INFRASTRUCTURE
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 13
Issuer Investors
Gatekeepers
Regulator
Intermediaries
Bond BlockchainExchange Payment
Network Purpose
Bond For issuance and trading of a bond
KYC For Gatekeepers to share KYC data
Exchange To share price info & trade commit
Payment For inter-Gatekeeper payments
Blockchains / Networks
KYC
• KYC / Payment networks may be blockchains
• Trustees and rating agencies – multiparty aggregators
• Some of these networks can be combined without losing
functionality and efficiency
15. APPLICATION LAYER
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 15
Used by Investor to Hold AssetsWallet
• Functionality for exercising options, voting and other investor privileges
• Options to communicate intent to trade
Used by Issuer / Gatekeeper for Client verification / servicingKYC Check
• Admission to the Bond Blockchain restricted by KYC
• Other Gatekeepers can pay and get this info with investor’s consent
Used by Issuer for Servicing InvestorAsset Servicing
• Acts as a registry service for the issuer
• Servicing - issuer authorized or automated as the case maybe
Used by the Regulator for Supervision and DisputesRegulatory Oversight
• Check the trade details of a particular investor
• Movement of a security across trades - market rigging or manipulation
16. Present Processes and Pain Points
Possible Solution and the Future
Issuing and Trading on Blockchain
AGENDA
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 16
17. ISSUANCE ON BLOCKCHAIN
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 17
Issuer Investors
Gatekeepers
Regulator
Intermediaries
Bond BlockchainExchange KYC
Participants work in real time on common datasets
Regulator’s oversight and immutability → Transparency
Issuer’s Wallet Investor’s Wallet
Minted Bonds
On-chain Money
Allotment
All participants maintain multi-asset wallets
On-chain money convertible to fiat currency
Pre Issue
• Hash of all transaction documents
• Issuer creates unique bond tokens
with unique Asset ID
Issue Opens
• Issue opens & investors join after KYC
check
• Investors fund wallet for subscription
Issue Closed
• Issuer’s wallet funded with
subscription amount
• Some intermediaries leave
18. TRADING ON BLOCKCHAIN
Available For Sale / Purchase flag
RFQ trading in bond blockchain
Gatekeepers may show trades in similar bonds
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 18
IssuerInvestors
Gatekeepers
Regulator
Intermediaries
Bond BlockchainExchange KYC
Exchanges add value in anonymity, order matching and price-
info dissemination
Seller’s Wallet
On-chain Money
Bonds
Settlement
True gross instantaneous settlement of bonds
Buyer’s Wallet
Blockchain anchoring
Committed on bond blockchain
Exchange OMS
Order request to bond blockchain
Price: Exchange Watchlist
19. Securely store and manage identity
Reconcile on-chain and off-chain ownership
Member in market infra networks
Authorize participation of traders
Consensus formation in blockchains
THE GATEKEEPERS
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 19
Bank
They maintain
investor/trader’
s wallet = Bank
a/c + Demat a/c
convert
between on-
chain Money
and off-chain
currencies
They maintain
KYC data of
investor /
trader
They move the
assets between
wallet’s
May make
market in the
bonds they are
members of
20. Present Processes and Pain Points
Possible Solution and the Future
Issuing and Trading on Blockchain
Benefits and Adoption Strategy
AGENDA
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 20
21. Cost Savings
• Lower Regulatory Costs: Transparency and clearer order trail
• Lower Transaction Costs: Simplified market will lower back office costs, lower margin postings
• Fewer Market Intermediaries: Eliminating the need for replication and duplication
Risk Management
• Risk Reduction: Reduced operational risk and counterparty risk
• Liquidity Risk: Avoiding market fragmentation and provides liquidity
• Credit Risk: Amortized incentives for rating agencies, risk scores and risk analytics across securities
Benefits of Early Adoption
• Reap returns on blockchain investments – rush to file patents
• Employees and partners get used to working with shared ledgers upfront
ADDRESSING PAIN POINTS
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 21
22. BENEFITS FOR THE MARKET
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 22
Regulators
• Market oversight - transparency and clearer order trail
• Real-time monitoring of financial activity – asset bubble etc
• Eliminates risk of single point of failure
Investors
• Real time settlement and capital freed up
• Significant reduction in disputes and certainty in settlement
• More equitable and accessible market
Issuers
• Efficient investor servicing due to automation and no need of a registrar
• Price discovery even if trades not executed
23. ENABLERS AND POSSIBILITIES
KYC: Digital system for storing identity attributes
Real-time Risk Monitoring: Real time accounting;
granular credit scores
Repos and Pledging: Very essential functionalities
for bond markets
Smart Property: Contracts interacting with
tangible real-world assets → enforcement
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 23
Other ProspectsEnablers
Overcoming
institutional inertia
with regulatory
leadership
Legal framework for
digitization, validity
and enforcement
Collective
standardization for an
all-inclusive single
solution
Value and trust
improves with the
quality and stability of
the systems
24. CORPORATE STRATEGY
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 24
Iterate, Enhance, integrate
Enterprise
Awareness
Understand
Landscape
Form
Partnerships
Solve Pain
Point
Evaluate
Benefits
An evolutionary process, that can be
communicated as beneficial, by focusing on
solving specific pain points
25. PROJECTS AND LANDSCAPE
Digital Security Issuances
tØ: Overstock issued crypto-bond on private placement basis
Digital Asset Holdings: A portion of Pivit’s funding issued using distributed ledger technology
NASDAQ Linq: Trading & tracking of shares in private companies using Open Assets Protocol
Testing by Bank Consortiums
R3: Tested trading bonds using technology by Ethereum, Chain, Eris Industries, IBM and Intel
Capital Market Blockchain Projects
Chain: Open source blockchain protocol helping banks to deploy and operate scalable blockchains
SETL: A multi-asset institutional payment and settlement platform
Counterparty: Financial tools built on top of the Bitcoin blockchain
Clearmatics: Decentralized clearing network to settle trades and automatize financial contracts
Symbiont: Distributed technology platform for institutional financial markets
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 25
26. Global bond market - muted returns and poor liquidity
Any efficiency will be a huge plus
Blockchain characteristics help in streamlining issuance and consolidating liquidity (trading)
Solution for these problems may be a blockchain ecosystem
Separate blockchains for each bond / each issuer? Single blockchain?
Entire life from genesis to maturity and two phase commit
Design is an use case specific, iterative process
Scalable, secure, confidential, reliable and compliant
Partnerships / investments to learn the evolving industry standards – open source
SUMMARY
Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM 26
27. 27Friday, November 11, 2016 BLOCKCHAIN SOLUTION FOR BOND MARKETS BY PRAJEESH JAYARAM
BLOCKCHAIN TECHNOLOGY WILL FUNDAMENTALLY ALTER
THE WAY FINANCIAL INSTITUTIONS DO BUSINESS
ACCORDING TO A WORLD ECONOMIC FORUM REPORT
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