IBIN — Global Registry for Companies and Assets

To build a digital Stock Exchange is something different because there is so much involved that we have to keep in mind while developing. It means that we are restructuring the heart of the modern economy. As always, any restructuring brings changes along. The Blockchains gives us the possibility to clean up the worst and to take over the best from the existing financial system.

The Blockchain returns the power to private businesses to conduct business without borders. Having the power returned brings additional responsibility as well. Banks and Stock Exchanges took that power from private companies over the last decades, and that is where we can start.

Everything starts with IBIN

We can’t change the developed financial system from outside in one go. Protection and establishment are too persistent against change. So, our goal is to change it where the departing of the ways is. The magic words for the Banks and the Stock Exchanges in the modern money mechanics are: “collective custody.” So, to get there, every instrument needs an ISIN; an International Security Identification Number to identify a company or security. Alternatively, in our case, it`s an IBIN; an International Blockshare Identification Number to identify a company or digital security on the Blockchain. The Issuer will choose the number of Blockshares which represents the company.

To understand why “collective custody” are the magic words, we must understand what is happening behind the scenes.

The economy is about business and exchanging goods and services very easily with money. Moreover, there are small and medium-sized companies worldwide which are the economy. All the Banks and the Stock Exchanges are living from these small and medium companies. All the different instruments which are traded on Exchanges are based on these real companies.

The idea of a Stock Exchange is to exchange securities for temporary ownership of a company. The company will get new capital to grow and therefore, is a private business. So far there is always a bank or broker in between to exchanges securities on the Stock Exchange. Why is that so?

Collective Custody

Everything starts with a piece of paper, a certificate. This certificate represents a company or a part of it. So far, this certificate is issued and held in private hands. Before dividing it into single shares to be usable by the financial system, this single certificate must get an ISIN. To get the ISIN is straightforward. If the Issuer is not aware of how to get it, he can get help from third parties, which is quickly becoming a costly experience. To apply and get an ISIN is free in most of the cases. So, the financial system makes it very easy for the Issuer to proceed with the certificate to the “collective custody.” There are only a few questions to answer. Everybody can apply for an ISIN for free. We believe that this is the right way to proceed, adopted the process, and applied it to the blockchain specifics and utilized it in the process to register an IBIN.

In today’s financial system, the process off issuing a certificate is as follows: The Issuer has to forward the certificate to a contractor bank. We ask ourselves why the Issuer must send the certificate to a Bank? The answer is that only the Banks are currently able, and traditionally incumbent, to do so. For example, they are providing dividend payouts and the split process from a single certificate to many stocks for the Issuer. The Bank takes over the responsibility of the Issuer.

After a contract between the Bank and the Issuer is signed, the Bank forwards the certificate to the regional leading Stock Exchange. The Stock Exchange will provide custody for that physical certificate in a secure place and creates and issues the asked number of shares (splits of the single certificate), all on a single centralized database. The Stock Exchange returns the generated shares to the Bank. The Bank will transfer the shares to the owners on their Bank deposits. The share creation is complete, and the stocks are now ready for the financial system. Keeping or dealing with the created shares means having to bear the high costs for holding the shares in a Bank account. There is no alternative to the oligopoly, as there was no other place to put them until now.

What is happening now is the returning of the power and responsibility to the people, meaning that the certificate doesn’t have to go to a contractor bank anymore. Now the Issuer will be allowed to store his certificate where it comes from and where it should stay. The Issuer will transfer the rights and obligations from the certificate directly into Blockshares using a blockchain-based transparent technical process. By using the Blockchain, the Issuer is now enabled to process their actions, such as the dividend payouts. He is now empowered to control his destiny in his rhythm. Therefore, the shares do not touch the traditional financial system anymore. No other Banks or Stock Exchanges are needed to change a physical certificate into Blockshares. (The Issuer will be able to, at any time, exchange the Blockshares against DIM Currencies on HYBSE and DIM Currencies to FIAT or BTC on DIMX.) The shares will now stay on the Blockchain with many available benefits, such as after transferring them outside the HYBRID Stock Exchange to a Wallet (e.g., Depotwallet or NEM based Nano Wallet or Trezor) the owner is free to decide over his possession of the shares and can’t be blocked or taken away by whomever. However, the downside is that if you forget the password to access your Depotwallet, Nano Wallet, or Trezor, then the shares are gone forever. On unconnected Wallets, investors can exchange Blockshares, DIM Currencies, and all kind of other assets as Blockshares, globally at any time to anywhere. There are no fees for holding Blockshares on the Blockchain. Additionally, Blockshares can be reverted into the certificate at any time in a controlled and secure process.

Everything must stay in balance.

The Blockchain is only a small extension in comparison to the financial system but is getting more and more globally accepted. Now, there is a new solution to share this value, without borders, at any time. The certificates can directly pass through the Blockchain.

To keep everything in balance means that the shares which are already issued and sitting on bank accounts or equivalent storages may remain where they are — stored in the name of the Issuer or owners. The Issuer can transfer the rights and obligations to the newly created Blockshares. If there is an existing ISIN, the IBIN takes over the 12 alphanumeric code and add a “B” at the end. Thus, creating a 13 alphanumeric code on the Blockchain.

We have invested a high amount of capital trying to get the right licenses, starting with the custody license in Mauritius. To this day, no custody license has been issued in Mauritius. Furthermore, we got a clearing license from the Kingdom of Lesotho, and while we had ambitious plans to take this small African country to the next level, it turned out to be unsuccessful. We spoke in many countries, to many governments, and got exclusive and very expensive help from third parties. However, there are no licenses available to date for all our different required needs.

So, to move forward, the issued shares must stay in the financial system under the existing rules and regulations, with the actual owner. Only the rights and obligations are transferred to the Blockshares. The costs are on the owners’ side as they choose the way to go into the financial system. Therefore, the owner must deal with it.

There is hope, and it is free and straightforward. The law makes it very easy for issued shares to leave the financial system. Either the Issuer books the shares out of the Bank or all existing shares will be returned to the contractor bank. The contractor bank is obliged to return the shares to the local Stock Exchange, which has to return the certificate.

Blockshares allow us to take power back to handle our own business again. The responsibility to take care of it and play fair is on our side. We know, the digital Stock Exchange is not perfect yet, but we are enhancing fast, and it is a disruptive implementation.

The future is digital

We want to be a part of this fantastic time, so, we will be continuing as pioneers in building the Hybrid Stock Exchange.

A platform based on Blockchain technology to exchange digital instruments. We are committed to combine and connect the best from the two worlds. Everybody is free to choose whatever is good for him and in what he trusts more: the influential and very well-connected financial system or the growing digital market. We came to the opinion that there is much room for innovation in the traditional financial system and that perhaps something is not in full order. The system is periodically destroying itself and at the same time taking large parts of the population to the ground. There is not much time left for the next big periodic cycle — the crash.

We are therefore very proud that Blockchain Technology evolved to an initially right level. In the next ten years, it will be standard to exchange digital instruments. Big companies are making themselves ready to step into the digital asset market. Today, we are making the first steps in this direction and developing the systems and processes while addressing challenges, at a rapid pace.

Speculative coins, such as Bitcoin, are not suitable for the exchanging of shares on the digital Stock Exchange.

We are working as hard as possible, with the available resource, to address the topics above and to focus on the ease of use for consumers, on fulfilling proper compliance standards to prevent illegal activities such as fraud, theft, etc.

In essence, not much has changed — The digital value is moving from one person to another with the big difference of having no middle man, which means that now the Issuer has complete control.

To conclude: Everything starts with an IBIN. Register your company today. The process is very straightforward and fast and is a part of this incredible evolution.