Solutions
Ethereum Blockchain Solution for Institutional Capital Markets
The Problem
Over recent years, although there have been significant technological advancements in the Finance industry, including that of Capital Markets, yet, across many parts of the lifecycle, limitations still prevail. This drives the need for more sophisticated solutions.
Various asset types continue to remain resource-constrained, deeply inefficient and error-prone. These challenges are peculiarly intensified by the ever-increasing regulatory burden implied on new and existing market participants.
The Solutions
Blockchain technology nurtures the potential to eliminate the existing inefficiencies in Capital Markets by facilitating far-reaching benefits and impact. Blockchain in Capital Market eliminates or reduces the role of intermediaries and facilitates the creation of digital assets (tokens) for financial securities, which enables more efficient collateral management.
Also, blockchain-enabled decentralized storage of asset data across all participants and smart contract-based automated & verified execution of transactions improve the resilience, security and scalability of the capital market architecture. Fintech start-ups and Capital Market institutions can embrace Blockchain and Distributed ledger’s dynamism with our Ethereum solution designed for mission-critical environments.
Benefits of our Ethereum Solution in Capital Markets
Faster Access to Capital
Okenization (digitization) of assets or securities facilitates easy and prompt issuing of securities in minutes.
Solvency Augmented
Blockchain-based digital assets have low entry barriers for both investors and issuers as they allow for the fractionalization of previously illiquid assets.
New Financial Instruments
Using the programmable standards of Blockchain technology entirely novel asset classes for capital allocation can be created.
Transparent Real-time Data
KYC and AML processes get extremely streamlined over Blockchain as it allows transparent and real-time visibility into data of investors, regulators, and other market participants. Also, immutability of Blockchain, automatically ensures the credibility of the data.
Reduced Counterparty Risk
Clearing the financial settlement between transacting parties is instant and transparent over the Ethereum ledger. This reduces default and ensures T+0 days settlement between the counterparties.
Lower Operational Costs
Smart contract-enabled transactions have low transaction costs and simplified fund servicing, allocation, accounting, and administration. All these help in decreasing overhead fees across capital markets.
Ethereum Insights
How to create ERC-20 token on Ethereum network?
ERC20 tokens, executed as smart contracts on the Ethereum Virtual Machine , define rules of interaction and purchase with other tokens.
ERC20 vs ERC721 vs ERC1155
ERC20, ERC721, and ERC1155 are the prevalent token standards as approved by the Ethereum community.
How to develop NFT Marketplace on Ethereum?
With the help of NFT marketplace developed on Ethereum blockchain, you can leverage open transaction history for ownership verification.