Overledger Business Paper
10 March 2018Download PDF (517kb)
On February 14, 2019, J P Morgan became the first U.S. bank to develop and test a digital coin representing a fiat currency, successfully. The Coin is based on blockchain based technology that allows an immediate transfer of value and payments between clients and enabled trading of bank digital assets.
In order for this digital exchange to happen between various parties, a digital currency needed to be created and developed.
In June this year, Facebook announced they would be developing a new currency, Libra, supported by over two dozen companies, with the likes of MasterCard and Spotify to name a few. This will open up a plethora of opportunities for those without a bank account, as they would now be able to use Libra to make instant and free payments and transfers with a simple click from a mobile phone.
Not only will individuals change the way they shop, bank and interact with one another using the internet, this digital economy brings with it a method of tokenization, that will have a significant impact on enterprise. Companies are now able to digitise shares and move them as transferable securities in a regulated decentralised capital market.
Tokenizing assets refers to a digital token that proves an ownership of a real asset. It allows you to convert the rights of assets and their economic value to that of the token. This means that there will be more transparency, data integrity and liquidity and not to mention arrivals of new players to the market who will inevitably bring higher liquidity to previously illiquid assets due to a larger amount of market players and capital available.
Digital assets and securitised tokens are creating a trillion-dollar market in a regulated environment for previously illiquid assets of tokenised private equity, public equity, real estate and investment funds.
It also is advantageous as there are a tremendous amount of opportunities that can make investment more efficient and convenient through DBN asset tokenization. This means that assets can be divided into small units enabling more market opportunities on a blockchain system.
Tokenising assets from verticals such as buildings, oil refineries, art and financial assets, allow the ability for companies to convert them into digital assets and sell and move them as transferable securities in a regulated blockchain system.
So, what is Quant Network’s role in all of this and what is their part in redefining Wall St and capital markets?
Quant Network has partnered with AX Trading LLC (AX), a technology-enabled registered broker-dealer and Alternative Trading System (ATS) operator, and together they are forming a new decentralised capital market infrastructure. The aim is to enable Interoperable and Regulatory-Compliant Digital Assets and Security Tokens in Capital Markets and Exchange Infrastructure by integrating Quant’s interoperability technology Overledger into AX Trading Network consisting of over 800 institutions plus traders, issuers, investors and regulators. AX trading is a Member of FINRA and SIPC.
Overledger a blockchain operating system, will enable universal interoperability for regulatory-compliant security tokens and digital assets to be traded on AX ATS, a regulated secondary trading market. AX intends to integrate Overledger to help foster the evolution of traditional capital markets infrastructure to facilitate the mass implementation of regulated digital assets. With the increased market adoption of digital assets and banking “coins” such as JPMorgan Coin, AX and Quant Network are at the forefront to enable the transferability and movement of digital assets.
Quant Network’s Overledger technology enables universal interoperability, one of the biggest challenges and unmet needs faced by the financial industry, to develop and implement interoperable blockchain and Distributed Ledger Technology based applications spanning different technologies – helping to foster the adoption of a global digital asset standard.
It is expected that the first interoperable digital asset offering may commence as soon as January 2020, and that the AX Trading ATS may be ready to enable and list interoperable digital securities in 2020.