1 Smart Contract Issuance

The issuance of securities is one of the most resource consuming processes in corporate finance, requiring a multitude of intermediaries and essentially only accessible to multi-billion-dollar corporations who can afford this. BlockState’s DLT-powered infrastructure and smart contracts allow us to tokenise financial instruments, bridging them to the wrappers of traditional financial products, lowering issuance and structuring costs, increasing liquidity in secondary markets and enabling easier listing and trading of securities.

2 Decentralised Calculation Agent

Calculation agents are traditionally persons or entities that calculate the value of a listed or non-listed security. They employ a string of manual processes to record audit trails and asset valuations. This is costly, lagging and reinforces data silos. BlockState’s digital and decentralised calculation agent uses oracles and smart-contracts to provide data in real-time, with 24/7 availability, full flexibility and by immutability by design.

3 Oracle/API Bridge

Data to value financial instruments and trigger contract mechanisms is kept in millions of unstandardised database silos and often needs to be manually monitored and leveraged to execute financial instruments. BlockState’s oracle bridge replaces the need for manual monitoring and data entry. They automate the provision of external data to smart contracts that trigger events when predefined conditions meet, reducing error, intermediaries and execution time.

4 Digital Asset Custody

Custodians safeguard funds and assets in the traditional financial space. These are usually banks providing the service at steep costs. Traditional custodians are unable to safeguard digital assets due to specific challenges, ranging from staking to ERC-20 incompatibility. BlockState’s Digital Asset Custody solution securely safeguards digital assets legally and cost-effectively and eliminates IT- and non-IT related risks like insider attacks and business continuity threats.

5 Trading Bot

Asset management traditionally involves financial institutions directing clients’ assets, either manually into mutual funds, or automatically into ETPs or investment strategies, requiring several intermediaries, lacking transparency and using tracking processes prone to error. BlockState’s self-managing smart-contract products, our Auto Broker and Trading Bot automate the process of asset management using algorithmic management and auditability by design.

6 Automated Settlement & Clearing

Clearing houses monopolised transactional reconciliation in the past decade due to the need for a trusted intermediary. In the current Derivatives market, reconciliation can take as long as T+30 days to clear. BlockState’s usage of smart-contract technology enables near-instant clearing and settlement, on the one side democratising access to a broader audience, and on the other side providing immutable trust by design.

7 On-Chain Reporting

Financial institutions manually observe, calculate, report and mitigate risks to comply with regulation. Responsibilities entail lengthy, manual processes and reporting and documentation are costly. Using DLT, BlockState automates flexible (semi-private) on-chain reporting that is easily accessible to regulators, reducing costs and execution time. It additionally automates risk mitigation via smart contracts and improves access to transparent and reliable data.

Our Roadmap

As we start to communicate our vision to the outside world, we have already built the first version of a working infrastructure stack. This month will mark the launch of the CTF15 — the first Exchange Traded Note, running fully on BlockState Infrastructure. But we are just at the beginning of our journey and have ambitious plans.

This is an outlook for the coming months and years.