Nivaura is no longer low-key, will help banks use the public chain


nnnNivaura, a start-up company based in Liverpool Street, London, recently revealed to CoinDesk about its ongoing project, namely, the use of Bitco Coin Chains and the APC public chain to create capital market solutions. This is a very special one because people generally believe that only private chains can meet the regulatory needs of privacy and transparency, causing widespread concern. At the same time, Nivaura has established a partnership with many well-known organizations and has been approved by the UK’s financial regulators, all of which have contributed to the development of its work.n
nnTranslated by: Inan
nUp to now, people’s understanding of Nivaura is limited to its participation in a number of well-known block chain incubators – two projects from JP Morgan’s resident project to the Financial Services Authority (FCA) regulatory sandbox.n
nBut in fact, the little-known start-up at Liverpool Street in London is not just getting close to big banks and creating proof of concept.n
nNivaura has publicly disclosed to CoinDesk that it has established an important partnership with banks and other institutions in the financial markets and has received a “rare” license from UK regulators to launch financial instruments and put them into use.n
nIf successful, a series of experiments (including its holding of client funds and assets) will be equivalent to “capital market self-service”, can greatly compress the existing complex process.n
nThis is not the case where it has been approved by FCA or has established a partnership with top investment banks, Metro Bank, Microsoft, Moody’s, but rather that when competitors insist on using private chains to meet privacy and Transparency regulatory requirements, Nivaura uses two of the most well-known public chains to create its capital market solutions.n
nNivaura’s chief executive officer and chief architect, Avtar Sehra (former theoretical physicist), explained in detail to CoinDesk why FCA’s license was to demonstrate that the Bitcoin block chain and the ethercomb public chain were able to complete what was considered to be done only through the chain Work is essential.n
nSehra said:n
nn”They gave us little permission so that we could arrange and execute the deal and hold the customer’s assets and money, and we had a client account to do the work, and we have proven that our products are available.”n
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nWho needs smart contract?n
nSehra and his team told CoinDesk that in order to build a market for issuing and managing securities (from debt and stock to more complex tools), they have already obtained FCA’s MiFID and CASS approval.n
nHowever, they must also overcome a key regulatory barrier that requires an independent third party to reconcile any transaction or sale of assets. The middleman is mandatory by law, or it seems to be the case.n
nHowever, Sehra argues that by recreating an independent third party or registry under the public chain, he can save up to 15% of the cost for the customer, and in the past year the company has been testing the theory.n
nIn November 2016, Nivaura became one of the nine start-up companies in the newly established regulatory sandbox of FCA, in which innovative companies could experiment within the required financial context without worrying that regulators would Beyond the limits of its pressure.n
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nThe technology itself consists of two main components: the first is the platform layer of a document tracking system, including KYC (understand your customers) function, using Nivaura’s own legal markup language to complete the agreement. The second is the “block chain agnostic” connection layer, has been in the ether square public chain and Bitcoin block chain on the test.n
nMost importantly, until now, the elimination of brokers’ functions is completely independent of distributed books. On the contrary, it is a series of “very simple data elements”, with Sehra’s words is who is the issuer, how much assets to create and so on.n
nAfter all the well-set work has been done, the asset can be transferred to the chain.n
nSehra said that although from the development point of view, with the ether-based intelligent contract language to make the process easier, but not necessarily have to use them. For example, the asset is stored in the “OP_Return” of the bitcoin, which is a field reserved for the underlying message, which has no effect on the block chain mining process.n
nSehra said:n
nn”We created a system that can execute transactions and record them on OP_Return, which is a metadata solution that essentially enables people to create assets on OP_Return by creating and deploying transactions.”n
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nA new type of investment bankn
nNivaura’s assets will be kept in the Bitcoin and the APF chain, rather than the Registry, which makes it somewhat like an investment bank. The main difference is that the asset owner has its own private key, you can view all bonds and debt issuance.n
nIn order to get rid of this potential paradigm shift, the capital market has largely become a high-risk vending machine, and Nivaura has assembled a number of partners, including a number of banks that may eventually become their customers, and a registrar that may be subversive Then
nAs for the second sandbox test (starting next month), Sehra will divide the work into control cases and test cases.n
nIn the case of control, Nivaura will operate like a traditional central registry, and even ask Capita Asset Services to manage funds, one of Europe’s largest registrars, managing $ 600 billion worth of assets for 6 million investors.n
nCapita will also help with testing cases and work with Nivaura to create a set of standard documents and protocols that can be implemented using the legal language of the start-up company. Nivaura will be the first to enter the company in September, and Allen u0026 Overy LLP will help ensure that the documents will be legally executed.n
nIn order to ensure reliable data on the contract itself, Nivaura also works with Moody’s to provide information on prices and probability of default based on historical trends. In addition, cloud storage and block-chain services are provided through Microsoft’s Azure’s BaaS toolkit.n
nCapita’s director of asset services, Peter Walker, explains that the compression of so many levels of capital market services into a single system is likely to open up investment tools for those who can not afford it.n
nWalker said in a statement to CoinDesk:n
nn”Perhaps most importantly, Nivaura’s platform helps to implement policy initiatives to open up debt capital markets to small and medium-sized enterprises, diversifying credit in the sector and becoming the most important part of many countries’ economies.”n
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nTo raise funds n
nSo far, Nivaura’s progress has come mainly from the financial support of its founding team, but this situation is about to change.n
nLast year, Goldman Sachs predicted a quarterly savings of $ 6 billion for the capital market, and in February last year, financial infrastructure provider Euroclear and Oliver Wyman reported that the first to be implemented in the first eight Month appears.n
nAlan Morgan, a member of Nivaura’s board of directors from MMC Ventures, has organized a round of seed investment, but has not published a specific amount, and the digital money group and other individual investors are also involved in the competition to lead the thriving ecosystem.n
nAs the company continues to evolve, Sehra says the assets based on Bitcoin and the currency are only the beginning.n
nHe concluded:n
nn”We are building a system so that we can use the currency on the block chain to count the tools, and we are currently using Bitcoin and Taalong, but the future may be the pound on the chain.”n

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