Solidum wants to replace Euroclear to help block-chain securities go public


nnnJudge, an investment company, uses its proprietary chain-chain platform to issue securities, and it is now hoped that it will be possible for small investors to promote such a way that banks and Euroclear will be able to enjoy similar services at a lower cost. Solidum says he is not another brokers, just screening who can take advantage of the platform and that it will provide better service in the future.n
nnTranslated by: Inan
nSolidum is accelerating its listing of its chain-chain securities.n
nLast month, the traditional investment firm issued a bill under a reinsurance contract and did not need to be approved by Euroclear (European Bond Clearing System). Solidum is able to issue $ 14.8 million in securitized notes using its proprietary ILSBlockchain.n
nSolidum, after losing its connection with Euroclear last year, set up its own block-chain platform, which now sees the platform as a way to provide similar investments to suppliers like their own.n
nBut this issue as a private placement not only in the number of limited, who can participate in investment there are restrictions. At present, the company is issuing more bills for more investors by becoming a “listed member” of the International Stock Exchange (TISE, located in the British royal region of Guernsey).n
nTISE CEO Fiona Le Poidevin has confirmed that its exchange has actually engaged in a dialogue with Solidum to discuss how the future issue of bonds issued in its chain will be listed.n
n”I’m looking forward to seeing how Solidum’s business will grow,” she told CoinDesk in an e-mail.n
nSolidum is currently negotiating with the Guernsey Financial Services Commission to ensure that the platform meets TISE requirements – including the initial payment of £ 10,000 ($ 13,000) and then £ 6,000 per year.n
nHowever, before that, the reinsurance contract itself is still the original provider, and the securitized bill purchased by the counterparty can be traded as any other securities until the bill expires (until 2023).n
nIn order to start trading, Solidwood partner and portfolio manager Cedric Edmonds said the two funds are currently combing regulatory requirements to join the group. Once the process is completed and the first transaction is started, Edmonds wants those who can not use the traditional platform to be an early adopter of ILSBlockchain.n
nEdmonds explained to his mission:n
nn”Basically the banks and Euroclear are excluded from the system.”n
nnn
nChallenge existing institutionsn
nWhile Solidum aims to weaken the role of banks and clearing platforms, the project continues to do business in the traditional way.n
nThe company started its first private placement in 2010 until it has been working with Deutsche Bank last year to reach Euroclear. At that time, the European Clearing House created the bill, and Solidum then settled with the investor using the traditional “delivery-payment” approach.n
nBut Edmond pointed out that last year Deutsche Bank’s internal changes made Solidum less accessible to Euroclear. Solidum spent some time looking for other banks to connect with Euroclear and then accidentally discovered the open source agreement Multichain from the Bitcoin block chain.n
nEdmonds, after downloading Multichain software in April, developed a series of nodes to test how to modify shared book technology to “reflect people’s activities in conventional financial markets.”n
nnThe result is – “it’s exactly what I want.”n
nnn
nNot another brokersn
nDespite Euroclear’s work with other similar platforms around the world, Edmond believes Solidum offers a new way for small investors who can not get Euroclear services to experience similar functionality at a lower cost Then
nHe says traditional brokers charge $ 50,000 to $ 100,000 a year for their services, and $ 29 for securities through ILSBlockchain.n
nEdmonds said:n
nn”If Euroclear and the bank trying to control everything out, you can drastically reduce your costs.” Euroclear is the pole that has been lifted by a stone.n
nnSolidum’s role here may be similar to a new brokers, although it is more efficient. But Edmond says his company is just a janitor.n
nIn its first release, Solidum manages the role of block-chain nodes representing various roles, including payment agents and block-chain sponsors, to monitor compliance with anti-money laundering and KYC regulations.n
nBut he said that the future users can manage their own nodes, he concluded:n
nn”We do not have a top system that controls it.When we create nodes and allow people to access the system, we can shut down the server so that everyone can get involved happily.”n

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