EBC22 | SWIAT – The Blockchain for Regulated Financial Entities

three two one i guess give it a second we just go ahead just go ahead okay yeah well thank you very much daniel for the warm welcome and um yeah i'm excited to be here today uh to present you um swayed our blockchain network for regulated financial entities which is tailor-made for this as very special sector and about there are very specific specific challenges and um we want to do a little recap before we jump into it because we want to express why it is necessary to design a specific network for regulated financial entities and we're better to start than looking at west crypto stands today and um by looking at that we see um the terra luna coin of course we all know it by now we have heard it quite a few times today already the value proposition itself failed but even worse the core value proposition of blockchain failed because the blockchain network has been stopped twice and how convenient that a net that the layer of truth the layer the the source the layer of trust can be stopped at the right time when it's convenient to stop so um of course there's some crumbling uh trust into the technology and we see that as well in the cryptocurrency crumbling valuations or as well in the similar scenario with the celsius network again an example we have heard already quite a few times today and which is temporarily and still discontinued where independency trust and decentralization has been violated and ultimately which is nothing new but is still in the market is the collaboration paradox which has been framed already by the world economic forum in 2021 and as well the ongoing fragmentation in the market recognized already by the bank for international settlement for solutions for regulated financial entities so in this market which is as well reference to now quite a few times again as a bear market where expectations forecasts and soaps get negatively revised the question is how can we proceed from there and what are the consequences and how can we truly get started and we have to recognize that we have a delusionalized environment where stakeholders will be more critical than ever and where feasibility will be always questioned and that we have to show that we actually can go into productivity in a productive mode for our clients and for our customers and we have in very short time have to overcome the collaboration paradox to ensure scalability and interoperability because otherwise no use case for the regulated financial sector will fly and what we see today still is that we see a lot of different use cases standing next to each other and simply offering a certain use case like tokenization derivatives or other use cases and we forget why we choose a blockchain that's what we are seeing currently in the market we are just simply okay i want to tokenize something and i do not care about the consequences on which blockchain to put it and as a result all these solutions are not interoperable with each other hence they are not scalable for the financial sector and when we see solutions trying to bridge blockchain technology we see that vulnerable points are getting opened up that we can get hacked like this weekend right now harmonize that's a core issue which we want to address by offering a blockchain network for regulated financial entities that we see that these actors become a proper network where they can trust and know that there are certain responsibilities and roles distributed from each other without getting and without getting violated in the sense of a governance aspect and i think what should be clear right now is what we should have learned as a sector is that without a use case of course technology like the blockchain technology is pointless but if we choose the wrong network right without the right network any use case is useless in the blockchain environment and this is painful to see that there are so many good use cases simply being thrown at the wrong network where we say okay but have you thought about the governance implications have you thought about what this means for the assets if they're going to get locked in etc etc and hence the issues for regulated financial entities scalability interoperability and conformity with regulatory standards and what is it what we offer for for these entities that's wired on the scalability aspect we separate the network from the use cases that's something what we have seen in the past by consortia and groups of banks that they simply move everything together and try to govern it all at once and this ultimately prevents innovation and stops the disruption which is going on so what's why it does is offering a network and giving each user the flexibility and the openness to describe and develop their own business model on top of it as an independent use case interoperability of course it is necessary to be compatible with the evm network because we have seen on network the innovation hub because we have seen the potential and the fireworks of innovation going on over there so um what we are ensuring is that we are connected to this net um and capable of bridging all the innovation we have seen in the past as well on this wired network but in a regulatory compliant way and thereby enabling traction for the regulated entities and market and of course conformity with regulatory standards we have been designing this platform already since 2009 and uh have been following as well the recent changes and uh in the legal landscape and have been monitoring this so this is something what we already embed into our platform so that financial institutions can simply add new use cases and start using them and by this we think and we're quite sure that we can overcome the collaboration paradox where no one wants to work together with each other and if we look at the landscape as a result what what changes right if we start using swyat in the network in a for the target group of regulated financial entities is that we still have these use cases standing next to each other they are still independent from each other we can still have startups offering their own value proposition still startups going after business purposes etc but ultimately the network ensures that they are interoperable with each other that are compliant with each other and that a bank can use their entire asset portfolio not only for one use case but for multiple use cases because capital markets financial markets are not single use case driven we have to think the entire sector in a holistic manner and to have to set it up in a holistic framework and that's exactly what we're doing on swyat so what are the opportunities that some participants joining us wyatt could do um on the asset side we are heavily focusing on securities we're not talking about crypto cryptocurrencies or nfts we're talking about digital securities like in the sense of the german electronic securities act released in the summer 2021 last year and as well hybrid securities securities which are still governed by traditional law and framework are fully digitalized on the network and as well as traditional securities so what do we have here from a banking point of view this is highly interesting because you have all the different asset types in one area and you can move them all together simultaneously in the same second and which is unseen until now in the market that you truly move them on the same technological environment um the different security types and when you have the rich variety of your asset portfolio available you of course want to use it in different use cases so what we are already enabling on our network is issuance of crypto securities um the usage of software for tokenization purposes as well as securities lending but and this is very crucial we are open for other innovation we are open for startups we are open for fintechs that they start developing your own solutions based on swired and evm compatibility so that they actually can enrich this ecosystem and control it can provide this holistic setup what regulated financial entities they really need on the blockchain world so to put it in a nutshell maybe what is why it is white enables regulated financial entities to move their traditional business on new technology on a blockchain and to develop the traditional business with digital securities and more and i'm happy to have a chat with one with a few of you and answer some questions after this presentation as well or on backstage or wherever and yeah would be happy to see someone or some few of you later at lunch yeah thank you very much