- Issue, Exchange, and Settle Debts
- Stocks Management
- Sponsorship and Investment
- Storage of Valuables
- Automation of Post-Trade Events
Issue, Exchange, and Settle DebtsBlockchain will provide the opportunity to buy, sell, and repay debt. Today, there are a number of additional industries for credit checks, credit history, and assignment of credit rating. Through the use of blockchain technology by individuals, small and medium-sized enterprises will be able to leverage their reputation to borrow by using a digital recording to obtain loans. In this way, it becomes possible to issue, exchange, and settle traditional debt obligations directly, thereby reducing costs and systemic risk while increasing the speed and transparency of lending.
Stocks ManagementBlockchain systems can be used to manage securities and automate settlement. Blockchain will establish a more sophisticated security-management process, which will not only reduce the cost, time, and risk level of settlement transactions but also increase the reliability of the financial system as a whole, especially during crisis periods.
Sponsorship and InvestmentAttracting funds usually requires intermediaries: for example, investment banks, venture investors, and lawyers. Blockchain automates many of their tasks, making it possible to use new models for direct peer-to-peer financing. It can also make dividend recording and payment of coupons more efficient, transparent, and reliable.
LendingWith blockchain, anyone can issue, exchange, and settle traditional debt obligations directly, thereby reducing costs and risk while increasing speed and transparency. Consumers will be able to get loans directly from the same consumers. This is especially important for those not covered by banking services, and for entrepreneurs around the world.
Storage of ValuablesWith blockchain, individuals will not have to rely on banks as the main depositories for valuables or representatives for savings and current account services. Organizations will have a more efficient mechanism for purchasing and owning risk-free financial assets.
Automation of Post-Trade EventsBlockchain can offer a solution for handling post-trade events: preservation of a single true source, jointly owned by all participants in the system. The use of blockchain and smart contracts for post-trade activities can eliminate the need for intermediaries, minimize obstacles and operational risk, and provide infrastructure for rapid trade settlement. Financial institutions can process securities in minutes, not days, with the main advantages being simplified settlement in real-time, improved liquidity, optimization of the supply chain, and increased transparency.