Over the past two years, the Smartlands team has been engaged in in-depth R&D and business development of products for companies and investors in the areas of regulated assets, investment banking, securities trading and related processes. Today, we much better understand the needs of professional participants in financial markets who are ready to implement blockchain solutions under certain conditions and requirements.
Had the solution to the problem meant only implementing just another protocol or making changes to an existing one, we would consider it a blessing. Unfortunately (or fortunately), both technological and business solutions for professional participants in the investment banking market are more complex and require, first and foremost, a deep understanding of their needs. The blockchain-based solution for them should create obvious value in comparison with existing technology.
Blockchain solutions for investment banking and management of regulated assets is a separate technology area that has something in common with a payment solution, but at the same time, it is unique to a large extent.
It is also important to note that investment banks, asset managers, exchanges, custodians of regulated assets are primarily focused on private solutions with options to implement on public networks that are adept in terms of regulation, parameters, and most importantly – prevalence among customers, vendors, etc.
Working with market participants and partners who accompany transactions, we concluded that it is of key importance to be able to provide a tailored solution that will provide maximum flexibility to potential customers (users) in the form of a private or consortium blockchain with the ability to access various public networks (blockchains).
Public fundraising is one of our key competences and we believe that public blockchain is very well suited for it, consequently, we develop our network the way it could be used both as a public blockchain and a private one.
The public network will be designed to provide a different level of oversight that is required for different types of assets under different regulations. Digital assets will range from tokens issued by using Smartlands Fundraising Plugin that may require no regulation whatsoever to regulated digital securities (financial instruments).
Private blockchain networks will be provided to classical financial firms and banks that embrace distributed ledger technology and set to benefit from cost savings it may provide. Afterwards, it will be possible to transfer assets issued in Smartlands-powered private blockchains to the public Smartlands Network.
We always bear in mind both liquidity and infrastructure as key factors of success for digital assets, therefore we will provide the solution to transfer assets to other blockchains that are popular for digital securities and digital assets in general, namely, we consider Ethereum, Stellar and Tezos as the most important networks. Transfer to other networks is planned to be introduced through anchoring. Should cross-network atomic swaps become possible, they are likely to be implemented.
Continue reading in the Light Paper.