In a breath, we leverage cryptography to wholly modernize large pieces of the lifecycle of a security: issuance, trading, and settlement are all automatically performed by a decentralized network, much like the way Bitcoin transactions are processed.

A system such as ours would provide a detailed view of market participants' ability to deliver on obligations in a real-time manner; simultaneously, it would protect participants' anonymity in transactions. This has numerous immediate benefits. Post-trade anonymity is crucial if one is supposed to execute at the best price, yet perhaps one has a friend at a competing brokerage firm (with a worse price). Transparency would allow regulators to immediately identify fraudulent behavior, and brokers providing financing would be able to judge the streetwide exposure of any one of its clients, should the client allow it, permitting better financing rates and higher leverage multiples.

Furthermore, this obviates many pitfalls of the modern finan...
In a breath, we leverage cryptography to wholly modernize large pieces of the lifecycle of a security: issuance, trading, and settlement are all automatically performed by a decentralized network, much like the way Bitcoin transactions are processed.

A system such as ours would provide a detailed view of market participants' ability to deliver on obligations in a real-time manner; simultaneously, it would protect participants' anonymity in transactions. This has numerous immediate benefits. Post-trade anonymity is crucial if one is supposed to execute at the best price, yet perhaps one has a friend at a competing brokerage firm (with a worse price). Transparency would allow regulators to immediately identify fraudulent behavior, and brokers providing financing would be able to judge the streetwide exposure of any one of its clients, should the client allow it, permitting better financing rates and higher leverage multiples.

Furthermore, this obviates many pitfalls of the modern financial system -- such as failures to deliver, margin calls, busts, failed locates and DK'd trades -- and also democratizes the capital markets by eliminating much of the overhead required to issue securities in a private placement. (For example, consider a startup looking to issue seed-round debt or equity securities, no less without imposing a liquidity premium on their valuation. Or, a medium-size company issuing a complex bank debt security, with little expectation it be traded outside a small group of individuals.)

The modern financial system is replete with examples of inefficiency, unnecessary overhead, and risks -- both systemic and operational. Our block chain would create complete transparency at any given point in time. This would allow orderly markets and the proper functioning of trading strategies, all while identifying and eliminating nefarious trading activities, or even simply predatory strategies.

Particularly with the advent of crowdfunding platforms and other JOBS Act-related exemptions, we feel the need for frictionless markets is greater than ever. Our business model would be to provide services around this new concept of capital markets -- and to earn transaction fees (similar to Bitcoin mining fees) as a network participant.

But in order to gain traction, we plan to target specific niche market participants in order to maximize the value of each additional user to the network.
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