Bring transparency, simplicity and efficiency to all your financial transactions.
What if we could revolutionize the financial world by replacing old processes and paperwork
with new methods of cooperation, innovation, and speed? What if fraud and crime could be
reduced by a shared view of the truth that is highly secure? Blockchain for institutional
finance answers those questions.
Central banks and governments are already setting the pace by implementing blockchain
technology, working together to
streamline interbank settlements, reduce counterparty risks, and create new solutions.
Now it’s your turn to join them.
What will we solve together?
Important concerns and issues in institutional finance include security, transparency,
trust and scalability.
Blockchain is likely to have the most impact across the entire spectrum of front-to-back
processes and operating metrics of an investment bank.
Finalizing a transaction involves a number of steps, including execution, clearing,
Reliance on third-parties
The process requires intermediaries for two crucial functions:
- Creating trust: Intermediaries act as trusted third-parties, ensuring that the
seller has sufficient funds and that payments are subtracted and added
correctly. Additionally, they offer buyer protection for counterparty risk - if
their goods fail to arrive or do not match what was promised.
Stock exchanges, payment providers and brokers, match buyers and sellers for
transaction execution. When securities are traded, a central counterparty (CCP)
often acts as the buyer for all sellers and the other way around. The goal is to
minimize the risk of failed trades.
Single point of failure
The current situation, in which payment delays may last for up to multiple days,
is often referred to as "T+3" by industry insiders.
International settlements can be complicated because they involve multiple
custodians, different settlement cycles, currencies, and legal systems.
Slow international operations
High fees and custodial risks
Intermediary services increase transaction costs, because of the time and
resources that must be devoted to maintaining a relationship with these third
parties. The use of custodians can expose market participants to custodial risks
because the lists of intermediaries are often long and the identities of those
listed are often not transparent.
Increased transaction costs
The LATTICE Network solution
Lattice Network’s blockchain framework establishes trust and security through
the use of decentralized networks rather
than centralized third-parties.
Cutting out intermediaries can reduce time, cost, and risks associated with
clearing and settling transactions.
Blockchain technology provides a similar level of transactional safety while
eliminating custodial risks.
No single point of failure
No custodial risks
Almost instant and lower cost
Blockchain technology, which uses shared and decentralized ledgers, are able
to facilitate settlements in a single step
and at a much lower cost, making T+0 a reality.