Middlemen increase transaction cost and oftentimes have an informational advantage.
Buyers & sellers must trust middlemen in order to participate.
Principal & interest payments, dividends & other corporate actions are slow, manual, expensive processes that are prone to human error. These actions are managed by third parties, representing another layer of cost and inefficiency.
Custody of assets is held by 3rd parties which creates security vulnerabilities. Settlements are slow, inefficient & costly
Non-exchange traded assets are typically illiquid (eg. Real Estate investments, private equity, hedge funds, bonds). Markets are not tradable 24/7 leading to inefficiency (eg. Asian markets can trade on news while US markets are closed & vice versa).
The swapblocks protocol reduces the role of middlemen to advisory/underwriting roles and liquidity providers. Completed & existing orders in any market are viewable by buyers & sellers, removing informational asymmetry. No trusted intermediary required.
Stock splits, proxy voting, P&I payments & dividends can be fully or partially automated. Central securities depositories can be disintermediated.
Participants can retain custody of their assets. Decentralized trading removes the need for central securities depositories to hold your assets. Settlement is instant and fully automated.
Traditionally illiquid assets can be easily traded in compliance with regulatory requirements and markets become tradable 24/7.
The premier digital repurchase platform.
Swapblocks Repo is designed to guide companies on a stable venture into blockchain repurchase agreements
Swapblocks Repo is a digital platform for corporations to engage in distributed ledger repurchase agreements (repos). The application uniquely leverages bilateral repurchase agreements coded into the blockchain to build an untapped lending network. Swapblocks Repo avoids higher brokers and banking fees and significantly shortens processing. Over time, Swapblocks Repo establishes a community of users that can quickly respond to opportunities which require capital to move forward. At the conclusion of the loan's term, interest and principal are seamlessly delivered to the respective parties to the transaction. It is designed to:
Generate liquidity: Traditionally, repurchase agreements have been used by the $2.67 T money market sector, hedge funds, and large commercial banks. Swapblocks Repo seeks to fill the gap for underserved, micro-capitalization ($50-300M) corporations that already have collateralized debt (repurchase agreements) on their books.
Reduce credit risk and fees: Centralized repurchase agreements are more costly and less transparent than those performed over a permissioned ledger. Swapblocks Repo delivers the same stability of traditional repos at a lower cost, and with shortened processing times.
Modernize the Repurchase market: The repurchase agreement is a long-established financial instrument; now, it is enhanced by the endless possibilities created by open ledger applications.
Utilization of Smart Contracts: One of the most promising applications of blockchain technology is the smart contract. It improves efficiency in commercial transactions by automatically executing the components of its code. This reduces middleman expenses.
