Traditional financial markets have long been opaque and inefficient, oft-times illiquid and have cumbersome onboarding and subscription processes which makes them somewhat difficult to access.
Tokenisation goes someway to solving for many of these issues by automating process and accessibility of the tokenised asset.
Tokenisation on blockchain is the process of issuing tokens representing real world (tangible) but digitally tradable assets.
Assets are tokenised using “smart contract” technology.
Smart contracts enable the automatic execution of rules when certain conditions are met, thereby lessening the steps required by traditional processes and therefore ensuring proper process, security, utility and consequently, cost-savings. Protocols are built on top of the settlement to extend functionality, typically with regard to privacy, permissioning and performance requirements.
LiCuido digital assets are unique and not interchangeable with other tokens.
Our smart contract protocol ensures that an investor must fulfil on-boarding and compliance protocol prior to accessing the LiCuido product suite. Furthermore, regulators can affirm the issuer’s compliance by auditing the smart contracts that underpin the entire lifecycle of a LiCuido token. This innovation offers secure, transparent, and efficient environment for managing digital assets that will help regulators embrace this new technology.
The investor will be able to gain access to a range of product offerings in digital form.
LiCuido technology ensures that transactions are immutable and near instant. This removes any need for reconciliation, transactions can be fed instantaneously via API’s, to internal books, records and cash/collateral management systems.
The issuer benefits from the ability to market their product digitally, with all the necessary onboarding, paperwork, KYC/AML checks and subscription notices all being handled by the platform electronically. We will help to open up new revenue opportunities by making our issuer funds readily and easily accessible via our streamlined, multi-functional front-end.
Via the LiCuido solution, investments which receive dividends or coupon will be programmed into the smart contract to allow for these interim payments to be sent and received automatically from the issuer to the investor. Again, reconciliation and operation costs are reduced as the process is fully automated and registered on chain.
The digitisation (minting) process includes all the benefits of DLT technology including immediacy and legal surety, real-time exposures for risk, oversight and streamlining of data and reporting to supervisory bodies where applicable, digital KYC/AML policies, easy adoption for large or small businesses and individuals, low transaction costs, security and robustness.
LiCuido enabled tokens are designed to have near instantaneous settlement, the smart contract ensures that the tokens are not issued until proceeds have been received and then regulated custodian wallets are automatically updated to reflect change of ownership.
This opens up the potential for intra-day transaction use as margin/collateral. This has the potential to produce cost savings related to “clearing” by reducing intra-day exposure to clearing bank balance sheet, as well as “releasing” HQLA collateral for margin.
As the tokens cannot be re-hypothecated, this means 100% settlement and guaranteed delivery with positive effects for financial stability.
Once onboarded, the investors details, KYC/AML and standard docs can be applied to each new issuer to simplify and reduce application requirements as we bring new digital asset product.
For the issuers, applications for access to new tokenised product can be automated to reduce unnecessary administrative duplication and facilitate access to new investors.
Digitise delivery Enhance Utility
LiCuido
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