Use Cases

Use Cases
by Thomas Park

Background

Companies such as banks, hedge fonds and other financial institutions that engage in derivative deals are bound by law to not only account for general business risk, but also for their default risk. This is crucial, as the failure of large-scale financial deals can negatively impact whole industries. Just think of the financial crisis of 2008!

Specialist service providers help companies fulfill the requirements in risk analysis, calculation and reporting to regulatory offices, which is great, as it helps protect us all from another global crisis. However:

  • These services are very expensive
  • They run on a centralized structure, which means they suffer from a lack of transparency
  • Data integrity relies on measures taken by a single private company – which poses a potential security risk

With XVA-Blockchain we can offer these services based on a revolutionary technology that solves for all the problems described above. By supporting us you contribute to a solution which

  • is fully transparent as key transactional data is publicly documented inside the blockchain
  • is 100% secure thanks to built-in immutability of data – in a blockchain structure, data can not be forged
  • is stable and reliable thanks to its decentralized structure

Oh, and our clients will love it, as it’s up to 90% cheaper compared to what they have to pay today.

Our usecases

As outlined above, powered by blockchain technology our secure, scaleable and transparent platform will set new standards for the financial services industry. A completely new system of checks and security to grow trust between business partners and enable safer, better and faster transactions.

For the start we have identified three core usecases that represent the backbone of a sustainable offering of collateral services for derivative deals. After launch we will gradually role them out, in which order will be made dependent on client demand.

You can learn more about our usecases by clicking on the links below:

XVA-Analytics

Analysis of XVA metrics to measure business risks in derivative deals

Trade Repository Reporting

Centralized reporting of derivatives to regulatory offices

Smart Derivative Contracts

Analysis of net business risk from cross-deal risk evaluation