EN | Tokenising SME Bonds on EBSI - DEUSS Project | MERGE Madrid 2025

Okay. Uh hello. Can you just confirm that you can hear me? Oh, perfect. So, I'll speak a bit about uh tokenization uh of bonds, theme bonds, company bonds and also about our uh project.

So uh we are building this project uh as a multinational consortium led by the Czech technic university but it's not uh like an average uh university project. It's like a real project for real uh financial markets. Uh first let me start with the problem that is uh like being solved by this uh project. The st the the thing is that uh European companies especially themes are really lacking uh the resources uh for growth and for development and they are basically relying on short short-term financing which is uh rather a problem for any growth obviously and also the economic situation fluctuation of uh rates uh and economic problems in various countries are even like making it more difficult for these companies. Uh therefore uh we are proposing an innovation which could really help uh them to grow.

Um we are building on a uh European Union frameworks uh that there has been a capital markets union proposed by like many previous commissions and there is also new savings investment union proposal uh that is like circulating now and the European Commission is working on and uh yeah the European Commission is really trying to make the capital markets uh work. Uh and we are offering uh one of the uh solutions. Therefore, we are using uh EPS the public blockchain infrastructure uh built by the European Commission. Uh and the use case that we are building has been approved already in 2020 and 21. uh where the strategy for sustainable and digital Europe called for uh such an EU wide platform for uh issuance and tradings uh of uh company bonds.

Uh this has also been approved by the European blockchain uh blockchain partnership. We basically built the like an open platform. We are an infrastructure platform and there can be also many businesses uh on top of uh the platform. Uh why is it an opportunity and uh what could it be like useful for? Um basically we are using the European infrastructure as a pan European project because the infrastructure is managed by the European Commission.

It's really like trustworthy. Uh it's uh it's like modern environment and the blockchain can help with the tradings of bonds. Uh can really help uh to cut the uh time of the transactions and definitely can also help to cut the costs of uh such transactions uh which can be especially helpful uh for like crossber investments. Just imagine yourself. Would you be able in the current setup to invest in any theme abroad?

Probably not. Especially not uh into their bonds. Uh they are like where's the market? You can't see the market. Uh and there might be the case that you can buy bonds.

But usually uh this is this is done uh only like within the particular countries but not across the countries. And this like additional capital flow can help both the investors uh with uh like getting a bigger pool ofmemes and bigger pool of investment targets but can obviously helpmemes on the other hand that they can uh have a better bigger pool of investors. Um we are basically bridging the traditional and new the digital finance. Uh because it's on blockchain. It's like real application of of uh blockchain.

Uh we will have uh the the securities uh there are like representing the the real debt of of of these uh these companies the bonds. Uh but we don't use uh stable coins. So we are kind of like between we are bridging between uh the traditional and the new uh new finance. Um and the such type of infrastructure will definitely uh be open to public uh and will be also open to other partners fintex and uh and investors obviously uh which can uh build on top of that. Uh there are like several advantages of uh for like all uh types of uh of stakeholders for issuers.

It's uh much more cost effective um very affordable uh and also we will cut the time of like on boarding uh and they'll have a bigger pool of investors. the same for investors but of also for the investors it will allow them uh to have uh and to see the unified uh scoring of the bonds and they can uh do the diversification uh internationally so that they'll be uh better protected and also there is an advantage for public authorities for the regulators because the regulators will uh can see everything uh in that it's like very traceable and um transparent. Uh regarding the project, it's a EU funded uh project. Uh as I said, it's like infrastructure project but despite that we will be regulated according to DLD pilot regime, not MEA. It's uh another part of the uh of the blockchain blockchain world.

uh as I said uh we won't have any any stable coins there. Uh so we have it basically as a par public private partnership uh funded by Czech resellence and recy facility but we have like 10 international partners in different uh member states uh and we basically position ourself as towards the commission or towards the public sector as a tool uh for supportingmemes in like a meaningful way. Not giving them like a free money but allowing them to have a bigger pool of uh investors and really like make the capital markets uh work in finally in an international uh context and we will have both primary and secondary market. So even the investors can not only like buy the bond but can also trade with it uh subsequently with other other investors. uh it will have both the onchain and off-chain uh part and that will be uh like a business application on on top of that.

Uh so uh the the market infrastructure is is both in onchain and and offchain. Uh regarding the uh infrastructure part, we use uh EPS uh the European blockchain services infrastructure. uh and uh it will work yeah as it is mentioned similar to stock exchange but uh yeah to some extent and the offchain component uh will be there of for uh managing the access uh of participants for managing the approvals uh KYC IML and these type of stuff but the business applications are also So pretty pretty interesting uh because uh it will the the core of it will uh will manage the uh the bonds and also the investors and uh in issuers uh portals and how it will work finally uh just imagine that you are an issuer and uh normally or nowadays you can go to your bank but It's like difficult and the markups are rather rather higher. But uh with our platform uh you can approach the platform uh directly or if you would like to have uh some help with the like technical with the blockchain part of it, you can also use uh technical service provider uh or by an intermediary to the platform. The platform works as the uh as the like capital market and it will like give you the uh the money uh or you can take uh the money from uh the institutional investors, corporate investors but later on also from retail investors which is also one of the uh like key topic uh of the uh like current um European capital market setup.

Uh how are we managing the project? Uh we have started uh last year with the uh proof of concept and we have started basically building it. Uh the project is uh fully regulatory uh compliant. We are now in the phase that uh the minimum viable product is is ready. So we have the product in in our hand and we will be obviously developing uh some additional additional functionalities and we uh aim to have the project uh ready uh the next year together with the uh with the license and uh so the go uh date will be will be 2026 but we also So open for like bridges uh and integration with uh some other some other uh partners.

Um we it's as I mentioned at the beginning it's not an academic project but it's a real project. We have the interest of like realmemes uh who uh signed up even like at the very beginning uh of it and um we are now testing the platform uh with thesememes and uh the open beta uh version will start hopefully uh at the beginning of of uh the next next year. So this is the uh DU uh DU project decentralized EU securityities security security service. Thank you for your attention.