Regulated Blockchain
Whitepaper
Infrastructure for regulated DeFi; foundation for a golden age in finance
BACKROUND
THE DAWN OF A GOLDEN AGE IN FINANCIAL SERVICES
In the beginning, there was trade by batter. Then, the invention of physical money gave birth to a profound paradigm shift that gave us the various financial services we still use today, which allow us to spend, save, invest, and borrow. After millennia of using physical money, technology has enabled the invention of a new form of money, which is on track to unlock a whole new financial services paradigm, possibly as profound as the very invention of finance itself.
While physical money gives us a great tool to manually create and consume financial services, the process involves human effort, cost, risk, and friction. More recently, digital money is laying the foundation for us to continue to gain the benefits of financial services without the associated challenges and hassle. During the golden age of financial services, not only will financial services be fast, cheap, frictionless, and infinitely diverse but they will also be safe, and compliant by default while requiring no human effort to produce or consume.
The golden age of finance will be fully digital and based on non-custodial financial assets, with trusted, fully automated processes and accurate financial records, all radically transparent to stakeholders and tamper-proof against manipulation. Interaction with these new financial elements will be through human-level AI agents that manage our finances on our behalf and ensure that not just the Bank but even Banking itself will entirely disappear.
LIMITATIONS OF TRADFI INDUSTRY
After the invention of physical money and over quite a long while, the Banking system as we know it today evolved to manage the delivery of financial services. Regulators and regulations also evolved to ensure that the system served its purpose in the least risky and most optimal way. Yet the following characteristics have remained major weaknesses of the current system.
- The need for custody which exposes end-users to the risk of fraud and misappropriation of assets
- The opaqueness of operations and corresponding ineffectiveness of regulation which limits compliance and makes regulation expensive and cumbersome
- The high cost of operations, infrastructure, and intermediaries associated with providing services
- The limited flexibility, variety, and personalization of products being offered to end-users
- The slowness, friction, and frustration associated with human involvement particularly where there are multiple intermediaries in the value chain
- A certain level of distrust for the system by various segments of consumers especially those with low income
With these issues, it’s no wonder there is still a large population of unbanked and under-banked individuals not just in developing countries but surprisingly also in some of the most advanced countries in the world.
DIGITAL RECORDS AND THE BLOCKCHAIN
Before blockchain technology, digital records were not as trusted as physical records, which was evident in the fact that commercial and government processes would require sighting and archiving physical copies of documents even after digital equivalents had been submitted. Physical documents have historically been trusted a lot more because records stored on physical mediums are created through an irreversible process hence expected to be permanent. In contrast, records stored digitally are represented by reversible (editable) electrical or magnetic states within computer systems.
Blockchain technology has enabled digital records to be stored in a form that is even more permanent than physical records. This is because the Blockchain stores copies of the same records across multiple computer systems in a completely tamper-proof way. The architecture and processes make records on the Blockchain just as immutable as physical records but even less likely to be physically destroyed since there are always multiple copies, as opposed to usually single copies of original physical documents. This development has resulted in a new paradigm where digital records can be even more trusted and reliable than physical equivalents.
DIGITAL MONEY AND DEFI
With the advent of Blockchain and the newfound trust and reliability of digital records, the possibility arose for such records to be used as valid representations of monetary value, which meant that rather than record monetary value on a piece of paper as a physical Banknote, monetary value could now be recorded purely in digital form on the Blockchain (as a digital currency).
Cryptocurrency was designed to be a type of digital currency that decentralizes custody of money and completely disrupts the very foundation of financial services as we’ve known it. With cryptocurrency, neither the digital monetary value nor the physical
computing and storage devices are held by any single entity. Instead, through secure cryptography, only the beneficial owner of the value has access to, and control over, the value.
Cryptocurrencies eliminate the need for physical cash along with all associated burdens and complexities. Cryptocurrencies also enable the automation and decentralization of financial services. With decentralized financial services or DeFi, computer programs run all financial operations associated with a financial product and apply rules of the financial product directly to users’ funds without the need for funds to be held in custody by any organization.
LIMITATIONS WITH CRYPTO AND CRYPTO-BASED DEFI
While cryptocurrency has experienced rapid adoption amongst advanced users, especially within the tech community, the asset class and service category is yet to gain mainstream acceptance. This is primarily due to a lack of compliance and regulatory oversight which has had the following inhibitory consequences;
Limited Institutional Participation- Regulated financial institutions around the world have avoided or limited the use of cryptocurrency assets and services due to difficulties enforcing compliance as well as fear of being sanctioned by regulators for non-compliance. Also, most cryptocurrency assets are considered very high risk and so not approved to be held by Banks as part of their investment portfolio. This means that ordinary individuals and organizations can not leverage Bank channels to buy and sell their Favorite cryptocurrency tokens.
Outright Prohibition- In some countries, the purchase, sale, and/or ownership of cryptocurrencies by individuals and organizations has been outrightly prohibited by relevant authorities due to concerns around money laundering, terrorism financing, and capital flight. In such environments, Cryptocurrency adoption is most limited.
No Consumer Protection- Even in scenarios where there is adoption and usage, lack of regulation means that users are significantly more exposed to potential fraud and other malicious activities without legal recourse. In most cases, the transparency built into the system to mitigate such exposure only benefits significantly advanced users who are sophisticated enough to understand and audit the internal workings of tokens or protocols including the computer programs powering them.
Low Trust Levels- With little to no consumer protection, the majority of potential users across individuals and organizations have developed a strong distrust for cryptocurrencies essentially associating the new asset class with market manipulation, fraud, and cyber-crime. Potential users also generally associate cryptocurrency with money laundry and related criminal activities which further discourages adoption.
In summary, TradFi is compliant and regulated but with significant gaps and limitations while Crypto-based financial services potentially address TradFi gaps and deliver superior value however can’t gain adoption due to the absence of regulation. Following this analysis, it seems the solution requires combining the best of the first two options into a superior third alternative.
OVERVIEW OF REGULATED
BLOCKCHAINS
DESCRIPTION
A Regulated Blockchain is a blockchain with in-built mechanisms and protocols to ensure that the applications, tokens, and records within it are safe, compliant, and subject to regulatory oversight. Regulated Blockchains combine decentralization with regulation to strengthen the value proposition of Blockchains in finance. They offer the benefits of Blockchain-based digital financial services while infusing trust and legitimacy from traditional finance.
Regulated Blockchains enforce regulatory compliance and enable regulatory oversight by applying the same transparency, immutability, and programmability characteristics that have made Blockchain ideal for delivering financial services.
Programmability allows regulatory rules and guidelines to be defined as computer programs that constrain the behavior of other programs underpinning services and instruments on the Blockchain.
Immutability ensures that service providers cannot alter records or processes running on the Blockchain without regulator approval even if they created the records or deployed the processes.
Transparency provides regulators with the ability to monitor all activities on the Blockchain in real time rather than being limited to ineffective periodic audits that allow unscrupulous operators to conceal non-compliant, unethical, and potentially outright illegal activities.
HIGH-LEVEL ARCHITECTURE
Regulated Blockchains comprise four layers of activity (Infrastructure, Regulatory, Product, and External Interface) that work together to deliver value to users.
Infrastructure Layer- The infrastructure layer provides the shared ledger and run-time environment as well as privacy and security protocols. In other words, the infrastructure layer enables the three primary characteristics of Blockchain being programmability, immutability, and transparency which are crucial for creating and regulating products.
Regulatory Layer- The Regulatory Layer consists of protocols and programmatic rules that mediate activities of products and instruments to ensure compliance and guarantee the overall safety of end-user assets. The regulatory layer also provides regulators with real-time visibility and allows them to participate substantially in governance.
Product Layer- The product layer comprises smart contracts that implement service functionality and enable token issuance. The product layer houses an ecosystem of Digital Assets and DeFi protocols. The product layer also provides native services and tokens for use by customer-facing applications and protocols.
External Interface Layer- The external interface layer is responsible for accepting inputs from and publishing outputs to external systems. This layer allows users to interact with and derive value from Regulated Blockchains via payment systems, wallets, and business applications as well as AI agents and other embedded finance systems.
OVERVIEW OF CORE PRINCIPLES
Permissioned Participation- Nodes and Service providers on Regulated Blockchains must meet a predefined minimum requirement and be licensed/approved by the regulator in the country and regulatory domain where they operate. This helps ensure the security and privacy of contents on the Blockchain.
Regulated Governance – On Regulated Blockchains, Regulators host validator nodes with real-time access to all information about applications/protocols, tokens, and transactions in their regulatory domain and country. Regulated Blockchains enforce on-chain governance across all tokens and protocols while each regulator is also required to approve the issuance of new tokens as well as the deployment of new services within their regulatory domain. Finally, regulators collectively vote to approve changes to the core infrastructure of Regulated Blockchains.
Self-Custody- Regulated Blockchains eliminate the need for Intermediaries to manage and control digital assets on-behalf of beneficial owners as well as prevent service providers from altering the operations of certified safe and compliant financial products without approval. Each user has sole access and control over their assets on the Blockchain. This approach eliminates counter-party risk and guarantees the safety of end-user funds.
Programmatic Regulation- Regulated Blockchains utilize code and logic within dedicated regulatory smart contracts or embedded via templating into token smart contracts to define and enforce regulatory guidelines. Regulated Blockchains also automatically screen smart contracts during deployment to ensure that each smart contract has the right structure and follows the appropriate template. The automated screening also confirms that smart contracts function in line with pre-defined product descriptions and that they do not contain any potentially malicious logic.
Native CBDC Token- Regulated Blockchains utilize native tokens pegged to the CBDC of a supported country as the base currency for all applications/protocols and gas fees in that country. For cross-border transactions, each applicable regulator may select
which currency should serve as global intermediary currency (base currency) during conversion.
Fully Automated Financial Products- Regulated Blockchains require that all operations delivering a financial product are automated using smart contracts and so do not involve human intervention. This approach ensures that operations are transparent, predictable, and controlled. This also means that regulators can verify compliance and safety before deploying a process and rest assured that the process will remain as such for as long as it is in use. From an end-user’s point of view, automated financial products eliminate unreliability, friction, and delays typically associated with human involvement.
BENEFITS AND IMPACT
Low Cost – By eliminating expensive human labor and intermediaries, financial services on Regulated Blockchains can be delivered at a fraction of the cost incurred in TradFi.
- Frictionless- Automated operations mean that service delivery is consistent and that all processes run straight through without human errors and mistakes.
- Instant- Automation ensures that end-users get responses to service requests instantly or almost instantly 24 hours a day and 7 days a week.
- Interoperable- Regulated blockchains achieve interoperability by bringing together diverse products and instruments from various Blockchains and service providers operating across different geographies into one single but shared computer system.
- Compliant- Regulated Blockchains enforce compliance more effectively than public chains and TradFi while utilizing far less effort and resources.
- Safe- Combining self-custody with automation, immutability, and real-time regulator governance eliminates the risk of loss due to misappropriation of funds, fraud, or cyber theft.
OVERVIEW OF USE-CASES
Payment
- Domestic Wholesale Payments- This use case allows traditional Banks to effect payments in real-time to beneficiaries in other local Bank.
- Domestic Retail Payments- Allows users of digital currencies to send and receive payments to and from other digital currency users or Bank accounts.
- Cross Border Payments- Enables the transfer of digital currencies or physical fiat to beneficiaries in other countries.
- CBDC On-ramp/Off-ramp- Provides seamless conversion between CBDCs and respective physical fiat money within each country
Banking
- Savings- Supports the creation of non-custodial saving products targeted at users of digital currencies.
- Lending- Supports the creation of collateralized and uncollateralized DeFi lending products that guarantee lenders zero risk of loss.
Asset Management
- Token Issuance- Provides for the issuance of tokens representing all forms of securities and financial assets. Supported token categories include payment tokens, securities tokens, utility tokens, physical asset tokens, and NFTs.
- Trading- Enables the creation of decentralized exchanges for trading currencies, securities, and other financial assets.
- Investments- Allows digital currency users to participate in multiple investment opportunities and own assets from various asset classes including liquidity tokens, tokenized securities, tokenized physical assets, and crypto.
Others
- Insurance- Provides smart contracts that manage the collection and investment of premiums as well as the processing and payment of claims.
- Accounting- Accounting protocols automate the creation of corresponding accounting entries representing various business activities following accounting rules and regulations in the relevant country.
- Tax Collection- Tax collection protocols on Regulated Blockchains facilitate real-time deduction of taxes during payment transactions
- Supply Chain Management- SCM solutions coordinate the flow of goods and raw materials from origin to end-consumers by tracking the availability and location of inventory as well as the status of payments while updating relevant records as production, purchase, and distribution occur.
- Payroll- Provide on-chain logic to compute net salary payments and determine PAYE tax amounts as well as initiate payments to beneficiaries and remit taxes to relevant authorities
- Land and Property Registry- Securely record, track and easily transfer ownership of land titles while enabling property owners to tokenize their
Conclusion
During the golden age of finance, the Regulated Blockchain will be the new Bank, on-chain records will represent money in the Bank, smart contracts will represent financial products and AI agents will serve as account managers for customers. Most importantly. all financial instruments and services will be compliant, safe and subject to regulatory oversight.
Regulated Blockchain
Whitepaper
Infrastructure for regulated DeFi; foundation for a golden age in finance
BACKROUND
THE DAWN OF A GOLDEN AGE IN FINANCIAL SERVICES
In the beginning, there was trade by batter. Then, the invention of physical money gave birth to a profound paradigm shift that gave us the various financial services we still use today, which allow us to spend, save, invest, and borrow. After millennia of using physical money, technology has enabled the invention of a new form of money, which is on track to unlock a whole new financial services paradigm, possibly as profound as the very invention of finance itself.
While physical money gives us a great tool to manually create and consume financial services, the process involves human effort, cost, risk, and friction. More recently, digital money is laying the foundation for us to continue to gain the benefits of financial services without the associated challenges and hassle. During the golden age of financial services, not only will financial services be fast, cheap, frictionless, and infinitely diverse but they will also be safe, and compliant by default while requiring no human effort to produce or consume.
The golden age of finance will be fully digital and based on non-custodial financial assets, with trusted, fully automated processes and accurate financial records, all radically transparent to stakeholders and tamper-proof against manipulation. Interaction with these new financial elements will be through human-level AI agents that manage our finances on our behalf and ensure that not just the Bank but even Banking itself will entirely disappear.
LIMITATIONS OF TRADFI INDUSTRY
After the invention of physical money and over quite a long while, the Banking system as we know it today evolved to manage the delivery of financial services. Regulators and regulations also evolved to ensure that the system served its purpose in the least risky and most optimal way. Yet the following characteristics have remained major weaknesses of the current system.
- The need for custody which exposes end-users to the risk of fraud and misappropriation of assets
- The opaqueness of operations and corresponding ineffectiveness of regulation which limits compliance and makes regulation expensive and cumbersome
- The high cost of operations, infrastructure, and intermediaries associated with providing services
- The limited flexibility, variety, and personalization of products being offered to end-users
- The slowness, friction, and frustration associated with human involvement particularly where there are multiple intermediaries in the value chain
- A certain level of distrust for the system by various segments of consumers especially those with low income
With these issues, it’s no wonder there is still a large population of unbanked and under-banked individuals not just in developing countries but surprisingly also in some of the most advanced countries in the world.
DIGITAL RECORDS AND THE BLOCKCHAIN
Before blockchain technology, digital records were not as trusted as physical records, which was evident in the fact that commercial and government processes would require sighting and archiving physical copies of documents even after digital equivalents had been submitted. Physical documents have historically been trusted a lot more because records stored on physical mediums are created through an irreversible process hence expected to be permanent. In contrast, records stored digitally are represented by reversible (editable) electrical or magnetic states within computer systems.
Blockchain technology has enabled digital records to be stored in a form that is even more permanent than physical records. This is because the Blockchain stores copies of the same records across multiple computer systems in a completely tamper-proof way. The architecture and processes make records on the Blockchain just as immutable as physical records but even less likely to be physically destroyed since there are always multiple copies, as opposed to usually single copies of original physical documents. This development has resulted in a new paradigm where digital records can be even more trusted and reliable than physical equivalents.
DIGITAL MONEY AND DEFI
With the advent of Blockchain and the newfound trust and reliability of digital records, the possibility arose for such records to be used as valid representations of monetary value, which meant that rather than record monetary value on a piece of paper as a physical Banknote, monetary value could now be recorded purely in digital form on the Blockchain (as a digital currency).
Cryptocurrency was designed to be a type of digital currency that decentralizes custody of money and completely disrupts the very foundation of financial services as we’ve known it. With cryptocurrency, neither the digital monetary value nor the physical
computing and storage devices are held by any single entity. Instead, through secure cryptography, only the beneficial owner of the value has access to, and control over, the value.
Cryptocurrencies eliminate the need for physical cash along with all associated burdens and complexities. Cryptocurrencies also enable the automation and decentralization of financial services. With decentralized financial services or DeFi, computer programs run all financial operations associated with a financial product and apply rules of the financial product directly to users’ funds without the need for funds to be held in custody by any organization.
LIMITATIONS WITH CRYPTO AND CRYPTO-BASED DEFI
While cryptocurrency has experienced rapid adoption amongst advanced users, especially within the tech community, the asset class and service category is yet to gain mainstream acceptance. This is primarily due to a lack of compliance and regulatory oversight which has had the following inhibitory consequences;
Limited Institutional Participation- Regulated financial institutions around the world have avoided or limited the use of cryptocurrency assets and services due to difficulties enforcing compliance as well as fear of being sanctioned by regulators for non-compliance. Also, most cryptocurrency assets are considered very high risk and so not approved to be held by Banks as part of their investment portfolio. This means that ordinary individuals and organizations can not leverage Bank channels to buy and sell their Favorite cryptocurrency tokens.
Outright Prohibition- In some countries, the purchase, sale, and/or ownership of cryptocurrencies by individuals and organizations has been outrightly prohibited by relevant authorities due to concerns around money laundering, terrorism financing, and capital flight. In such environments, Cryptocurrency adoption is most limited.
No Consumer Protection- Even in scenarios where there is adoption and usage, lack of regulation means that users are significantly more exposed to potential fraud and other malicious activities without legal recourse. In most cases, the transparency built into the system to mitigate such exposure only benefits significantly advanced users who are sophisticated enough to understand and audit the internal workings of tokens or protocols including the computer programs powering them.
Low Trust Levels- With little to no consumer protection, the majority of potential users across individuals and organizations have developed a strong distrust for cryptocurrencies essentially associating the new asset class with market manipulation, fraud, and cyber-crime. Potential users also generally associate cryptocurrency with money laundry and related criminal activities which further discourages adoption.
In summary, TradFi is compliant and regulated but with significant gaps and limitations while Crypto-based financial services potentially address TradFi gaps and deliver superior value however can’t gain adoption due to the absence of regulation. Following this analysis, it seems the solution requires combining the best of the first two options into a superior third alternative.
OVERVIEW OF REGULATED
BLOCKCHAINS
DESCRIPTION
A Regulated Blockchain is a blockchain with in-built mechanisms and protocols to ensure that the applications, tokens, and records within it are safe, compliant, and subject to regulatory oversight. Regulated Blockchains combine decentralization with regulation to strengthen the value proposition of Blockchains in finance. They offer the benefits of Blockchain-based digital financial services while infusing trust and legitimacy from traditional finance.
Regulated Blockchains enforce regulatory compliance and enable regulatory oversight by applying the same transparency, immutability, and programmability characteristics that have made Blockchain ideal for delivering financial services.
Programmability allows regulatory rules and guidelines to be defined as computer programs that constrain the behavior of other programs underpinning services and instruments on the Blockchain.
Immutability ensures that service providers cannot alter records or processes running on the Blockchain without regulator approval even if they created the records or deployed the processes.
Transparency provides regulators with the ability to monitor all activities on the Blockchain in real time rather than being limited to ineffective periodic audits that allow unscrupulous operators to conceal non-compliant, unethical, and potentially outright illegal activities.
HIGH-LEVEL ARCHITECTURE
Regulated Blockchains comprise four layers of activity (Infrastructure, Regulatory, Product, and External Interface) that work together to deliver value to users.
Infrastructure Layer- The infrastructure layer provides the shared ledger and run-time environment as well as privacy and security protocols. In other words, the infrastructure layer enables the three primary characteristics of Blockchain being programmability, immutability, and transparency which are crucial for creating and regulating products.
Regulatory Layer- The Regulatory Layer consists of protocols and programmatic rules that mediate activities of products and instruments to ensure compliance and guarantee the overall safety of end-user assets. The regulatory layer also provides regulators with real-time visibility and allows them to participate substantially in governance.
Product Layer- The product layer comprises smart contracts that implement service functionality and enable token issuance. The product layer houses an ecosystem of Digital Assets and DeFi protocols. The product layer also provides native services and tokens for use by customer-facing applications and protocols.
External Interface Layer- The external interface layer is responsible for accepting inputs from and publishing outputs to external systems. This layer allows users to interact with and derive value from Regulated Blockchains via payment systems, wallets, and business applications as well as AI agents and other embedded finance systems.
OVERVIEW OF CORE PRINCIPLES
Permissioned Participation- Nodes and Service providers on Regulated Blockchains must meet a predefined minimum requirement and be licensed/approved by the regulator in the country and regulatory domain where they operate. This helps ensure the security and privacy of contents on the Blockchain.
Regulated Governance – On Regulated Blockchains, Regulators host validator nodes with real-time access to all information about applications/protocols, tokens, and transactions in their regulatory domain and country. Regulated Blockchains enforce on-chain governance across all tokens and protocols while each regulator is also required to approve the issuance of new tokens as well as the deployment of new services within their regulatory domain. Finally, regulators collectively vote to approve changes to the core infrastructure of Regulated Blockchains.
Self-Custody- Regulated Blockchains eliminate the need for Intermediaries to manage and control digital assets on-behalf of beneficial owners as well as prevent service providers from altering the operations of certified safe and compliant financial products without approval. Each user has sole access and control over their assets on the Blockchain. This approach eliminates counter-party risk and guarantees the safety of end-user funds.
Programmatic Regulation- Regulated Blockchains utilize code and logic within dedicated regulatory smart contracts or embedded via templating into token smart contracts to define and enforce regulatory guidelines. Regulated Blockchains also automatically screen smart contracts during deployment to ensure that each smart contract has the right structure and follows the appropriate template. The automated screening also confirms that smart contracts function in line with pre-defined product descriptions and that they do not contain any potentially malicious logic.
Native CBDC Token- Regulated Blockchains utilize native tokens pegged to the CBDC of a supported country as the base currency for all applications/protocols and gas fees in that country. For cross-border transactions, each applicable regulator may select
which currency should serve as global intermediary currency (base currency) during conversion.
Fully Automated Financial Products- Regulated Blockchains require that all operations delivering a financial product are automated using smart contracts and so do not involve human intervention. This approach ensures that operations are transparent, predictable, and controlled. This also means that regulators can verify compliance and safety before deploying a process and rest assured that the process will remain as such for as long as it is in use. From an end-user’s point of view, automated financial products eliminate unreliability, friction, and delays typically associated with human involvement.
BENEFITS AND IMPACT
Low Cost – By eliminating expensive human labor and intermediaries, financial services on Regulated Blockchains can be delivered at a fraction of the cost incurred in TradFi.
- Frictionless- Automated operations mean that service delivery is consistent and that all processes run straight through without human errors and mistakes.
- Instant- Automation ensures that end-users get responses to service requests instantly or almost instantly 24 hours a day and 7 days a week.
- Interoperable- Regulated blockchains achieve interoperability by bringing together diverse products and instruments from various Blockchains and service providers operating across different geographies into one single but shared computer system.
- Compliant- Regulated Blockchains enforce compliance more effectively than public chains and TradFi while utilizing far less effort and resources.
- Safe- Combining self-custody with automation, immutability, and real-time regulator governance eliminates the risk of loss due to misappropriation of funds, fraud, or cyber theft.
OVERVIEW OF USE-CASES
Payment
- Domestic Wholesale Payments- This use case allows traditional Banks to effect payments in real-time to beneficiaries in other local Bank.
- Domestic Retail Payments- Allows users of digital currencies to send and receive payments to and from other digital currency users or Bank accounts.
- Cross Border Payments- Enables the transfer of digital currencies or physical fiat to beneficiaries in other countries.
- CBDC On-ramp/Off-ramp- Provides seamless conversion between CBDCs and respective physical fiat money within each country
Banking
- Savings- Supports the creation of non-custodial saving products targeted at users of digital currencies.
- Lending- Supports the creation of collateralized and uncollateralized DeFi lending products that guarantee lenders zero risk of loss.
Asset Management
- Token Issuance- Provides for the issuance of tokens representing all forms of securities and financial assets. Supported token categories include payment tokens, securities tokens, utility tokens, physical asset tokens, and NFTs.
- Trading- Enables the creation of decentralized exchanges for trading currencies, securities, and other financial assets.
- Investments- Allows digital currency users to participate in multiple investment opportunities and own assets from various asset classes including liquidity tokens, tokenized securities, tokenized physical assets, and crypto.
Others
- Insurance- Provides smart contracts that manage the collection and investment of premiums as well as the processing and payment of claims.
- Accounting- Accounting protocols automate the creation of corresponding accounting entries representing various business activities following accounting rules and regulations in the relevant country.
- Tax Collection- Tax collection protocols on Regulated Blockchains facilitate real-time deduction of taxes during payment transactions
- Supply Chain Management- SCM solutions coordinate the flow of goods and raw materials from origin to end-consumers by tracking the availability and location of inventory as well as the status of payments while updating relevant records as production, purchase, and distribution occur.
- Payroll- Provide on-chain logic to compute net salary payments and determine PAYE tax amounts as well as initiate payments to beneficiaries and remit taxes to relevant authorities
- Land and Property Registry- Securely record, track and easily transfer ownership of land titles while enabling property owners to tokenize their
Conclusion
During the golden age of finance, the Regulated Blockchain will be the new Bank, on-chain records will represent money in the Bank, smart contracts will represent financial products and AI agents will serve as account managers for customers. Most importantly. all financial instruments and services will be compliant, safe and subject to regulatory oversight.