The first institutional-grade global network for digital securities - - PowerPoint PPT Presentation

The Blockchain of Ownership

The first institutional-grade global network for digital securities

Based on Hyperledger Fabric, aimed at institutional financial entities, assets and investors

Within 10 years, digital securities will be the standard. The vast majority of capital will flow in the institutional ecosystem. Ownera’s mission is to be the rails for this new multi-trillion $ market,

Ami Ben David,

A pioneer in the digital securities market

C O - F O U N D E R & C E O

@AmiBenDavid

• 2017 An entrepreneur and investor
• 2017, Co-founded SPiCE VC – the 1st fully-tokenizd VC fund
• 2017, Co-founded Securitize – the 1st digital securities issuance platform
• 2017-18, Worked hands-on on the first platforms, protocols and exchanges
• 2018-19, Invested as a VC in 7 digital securities ecosystem startups
• 2018-19, Interacted with hundreds of ecosystem projects
• And now, as CEO of Ownera, scaling up the digital securities market

Ownership is data, Society agrees that Owner X has rights in Asset Y. Like any data, it can be digitized.

What is Ownership?

Owner A Owner B

To trade private assets, the seller and buyer go through a slow, expensive, lawyer-heavy process. Then everyone sign documents which detail what rights the buyer gets. The combination of all documents across all owners IS the ownership. Let’s call these documents “Analog Ownership”

The majority of global asset ownership is still Analog

Owner A Owner B

A master set of docs, smart contracts and regulatory rules define the rights of any token holder. A blockchain keeps a record of who owns each token, replicated in consensus, so no one controls the ledger. Ownership becomes a digital item, a token, which can flow instantly all over the world.

Security tokens make ownership Digital

Tradable ownership “Token” KYA (Know your Asset): The rights of token owners,

What happens when a market moves from Analog to Digital?

THE MUSIC ANALOGY

Stage 1: Analog

You can only buy the records your local shop gets Ownership ip: Local, paper based deals

Stage 3: Innovation!

P2P, cut middleman, Illegal music distribution, NAPSTER… Ownership ip: ICOs

Stage 2: Digital Format

More portable, but not a fundamental change Ownership ip: Cap management software

Stage 4: Digital

Streaming, , in instant, unlimited, new biz models, SPOTIFY… Ownership ip equiv ivalent: Digital Securities

• Any asset class, private or public
• Efficient and low cost
• Global availability and discovery 24x7
• Instant transactions
• Increased liquidity
• Instant dividend distribution
• Reduced counterparty risks
• Fractional ownership
• New financial products
• New business models
• Regulation enforcement

The potential: a NEW digital market

Music was a 10s of $ billions market… Digitizing asset ownership is a 100s of $ trillions opportunity. $70 trn

Global Equity

$215 trn

Global Debt

$217 trn

Global Real Estate

$544 trn

Derivatives

Institutional Players Are Coming!

London Stock Exchange

c

Led a $20m investment in security tokenization platform Nivaura, and launched first STO

NASDAQ & Citi

Led a $20m investment in security tokenization platform Symbiont

Goldman Sachs

Invested in Circle which acquired SeedInvest to go into Security Tokens.

Societe Generale

launched the first $100m tokenized bond on the blockchain

Fidelity

Entered the crypto custody market, invests significantly in the space

JP Morgan

Developed Quorum blockchain which is competing for security tokens projects.

Swisscom, Deutsche Börse

Build a security tokens issuance and exchange together

VC Funds investing

A16z, Blockchain Capital, Founders Fund, SV Angels… invested in startups in the space

Robert Greifield, former CEO of NASDAQ

“…in five years, 100% of the stocks and bonds on Wall Street WILL be tokenized.”

Back to reality: the challenges

The road to a massive digital securities network starts with the institutional ecosystem, where the vast majority

• f global capital is managed, and private assets can trade.

However, an institutional-grade digital securities network does not yet exist.

It starts with institutional investors

The market offers either: Retail facing, pseudo-anonymous, crypto networks that are public but not institutional (Ethereum or EOS). OR Private institutional blockchains - isolated silos on intranets (like HyperLedger Fabric or R3/Corda).

The most critical infrastructure piece is missing: an institutional-grade network.

While some institutions start with private blockchains, the end-game is a global interconnected institutional-grade network effect, not private silos.

The critical information about the real-world value of assets (legal docs, asset data, token rights) is usually held

• ff-chain, scattered on private servers, hard to find and

easy to manipulate. No information ➔ No real market

Another critical problem is access to reliable asset information

On-chain tokens Real world ownership rights ?

Even worse than missing info, is misleading info. On crypto networks, anyone can “issue” tokens to sell the Brooklyn Bridge... When miners only validate digital transactions, issuers can say whatever they want about the real world. No underwriting ➔ networks fill up with “garbage”.

The “Brooklyn Bridge” problem

The institutional end-game is a network where ALL assets have legally-binding information, verified by trusted underwriters.

Ownera is an institutional-grade global digital securities network,

• pen to all qualifying nodes, assets and users:
• Only regulated financial entities can become Ownera nodes
• Nodes can choose: start private → syndicate → full network
• Each node can implement its own fiduciary check points
• 100% verified asset information with Proof of Ownership
• Based on HyperLedger Fabric institutional-grade technology

Ownera solves these challenges by putting regulated financial entities at the center!

The Blockchain of Ownership

The role of underwriting nodes is to bring assets onboard, verify their information and transactions and seal them with Proof of Ownership. An asset can not launch directly into Ownera – only via an underwriting node.

Only regulated financial entities can join Ownera as nodes

Investment Bank

Commercial Debt

Exchange

Company Shares Company Shares Company Shares

Investment Bank

Commercial Real Estate Infrastructure Project Company Shares Commercial Real Estate

Who are the perfect underwriting nodes?

Investment banks, exchanges, broker-dealers and other asset and wealth managers have been working with assets for decades - now they can see significant growth in digital.

They understand the business needs and fiduciary duties of institutional investors, and they are REGULATED.

Knowledge

They have access to the largest and most lucrative assets.

Access

They are at the center of the institutional investor ecosystem and can distribute assets in scale.

Distribution

The business model for nodes – a new $ trillion market!

Underwriting nodes stake their reputation on the assets they upload to Ownera, and in return get li life fetim ime revenues from those assets.

Nodes stake their reputation on the assets they upload to Ownera, so they are free to price set up any way they want.

Set up fees

Nodes can charge a transaction fee at the network level, regardless of where the transaction takes place. This is a NEW revenue stream.

Per transaction fees

Underwriting nodes can provide multiple services around digital securities, such as Distribution, Custodianship, Credit lines, Escrow and so on.

Financial services

All asset tokens on Ownera are self contained units, carrying their verified real-world value and data (KYA) with proof of ownership, on-chain.

SOLVING THE “BROOKLYN BRIDGE” PROBLEM

All assets on Ownera will have KYA, verified by the underwriting node of the asset. KYA is a set of docs and data (natively digital or scanned), with all the information about the asset and token rights. It is complete, legally-binding, updated with disclosures, privacy-enabled and immutable – so investors always know exactly what they own.

KYA (Know Your Asset)

Investor trust is a critical success factor. When users check any asset on Ownera, they will know exactly what they’re getting (legally-binding), and which regulated entity staked its reputation on this information.

The core functionalities of securities are built into the network

90% of what used to be application-layer, is now a simple network service, so applications don’t have to reinvent the wheel, and can focus on their use-cases.

Owners

People or legal entities with KYC/AML approval.

Assets

Assets in the real world, paired to Ownera tokens via KYA, with support for multi-class tokens

Underwriting Nodes

Financial and Commercial entities, with trusted

• wnership services expertise.

Atomic Trades

Instant settlement against any currency, including fiat, with no counter-party risk.

Proof of f Ownership

Consensus designed to prove ownership of off- chain assets.

Distribution

Financial incentives powering a global economy of trusted

• wnership services.

Regulation App Store

Built-in regulation-compliance. Issuers select which regulations to support.

Privacy

Full control over privacy for assets and owners

Governance

Open, transparent, permission- decentralized.

Architected from the ground up for digital securities

Unique and powerful services are a natural part of the architecture

Ownera supports docs and data per KYA, with native support for multiple classes per asset, with the ability to query, analyse and bundle assets by any KYA parameter.

Immutable KYA, structured / unstructured

Participating nodes can decide which assets (their own, a syndicate, global), they trust and want to expose and share per client, per asset or lifecycle stage – super granular control.

Elastic: Private → Syndicate → Full network 1 2

The currencies channel on Ownera is virtualized from the transaction channels – enabling instant atomic swap capability against digital currencies, fiat, or even a bank’s own credit systems.

Atomic Swap for any currency, including fiat 3

Custodian services are a first-class requirement of a security tokens network – Ownera includes hooks to connect secure custodian services at the base layer.

Built-in Custodian integration points

Adding support to a specific country regulation should be as easy as ticking a box. More regulation support can be added at the base layer level at any time.

Open Source Regulation App-Store 4 5

Users will be able to not only hold tokens, but also publish their intent to sell/buy at the blockchain level, which exchanges can aggregate and match

Network Wide Secondary Liquidity 6

Test Net is live, based on Fabric Alpha 2.0

It’s happening!

Tech co-founders join, Development start

Q 4 / 1 8 Q 1 / 1 9 Q 2 / 1 9 Q 3 / 1 9 Q 4 / 1 9 Q 1 / 2 0

First demo presented! Ownera concept is born! Sign cloud partner/s (targets: IBM, AWS, Google, MS) Start 1st PoC with bank, full KYA, Team scale-up, Start signing Underwriting Nodes, ecosystem partners Launch TEST Network with Core features, Test assets Start 2 more bank PoCs, ecosystem partners Launch Main Net, Deploy first LIVE assets Ramp up partner nodes for launch Launch Ownera Foundation (Zug), community push Marketing co-founders join Legal structure designed

Technology Co-Founders

M E E T T H E C O - F O U N D E R S

Blockchain expert. Architected messaging network used by

• ver ~500 million users.

Diego Beprosvan

Former CTO of Capriza, which raised $70m led by A16z.

Yuval Carmel

C T O / C H I E F A R C H I T E C T S V P R & D

Blockchain dev expert Top software architect High scalability platforms Messaging networks HyperLedger

Skills

CTO Level Tech leadership Enterprise software platforms large scale SAAS products Software security HyperLedger

Skills

Linkedin Linkedin

Marketing Co-Founders (external)

M E E T T H E C O - F O U N D E R S

Co-Founder of GHV fund, Security Token Summit, CIS, LA Blockchain Week, 805 Startups & Investedin

Alon Goren

Co-Founder of GHV fund, Security Token Summit, CIS & LA Blockchain Week.

Josef Holm

M A R K E T I N G T E A M M A R K E T I N G T E A M

Marketing / PR Blockchain / Crypto Conferences Crowd funding Punk Rock ☺

Skills

Marketing Business development Growth hacking Blockchain / Crypto Scuba diving

Skills

Linkedin Linkedin

The Blockchain of Ownership

An institutional-grade network for digital securities