The secrets of the unusually successful Provenance Blockchain - Part 1 Commercial

Описание: Part 1 of 2 of a Future of Finance interview with Anthony Moro, chief executive officer, and Ira Miller, vice president, engineering, at Provenance Blockchain.

• With US$10 billion in total value locked on-chain in home loans, private equity, alternative funds and life assurance policies, and a further US$1 billion of assets being added every month, the Provenance Blockchain believes it is the largest originator of tokenised financial assets in the world.

• Although the Provenance Blockchain is presently focused on tokenising assets that continue to exist in the “real world,” the management believes that the full benefits of tokenisation cannot be captured without a long-term transition to native tokens which exist solely on the blockchain.

• The Provenance Blockchain is designed and built specifically for financial services uses cases and its first application is to the home equity lines of credit (Heloc) market in the United States, where it has saved loan originators 150 basis points in issuance, warehousing and securitisation costs they can share with borrowers.

• Having proved it can generate operational cost savings in the Heloc market, through the elimination of unnecessary forms of intermediation, the Provenance Blockchain is capable of extension to other forms of private credit such as holiday home mortgage, solar, automobile, student and commercial real estate loans.

• Provenance Blockchain was one of seven firms that worked with J.P. Morgan and Apollo on a project under the auspices of the Monetary Authority of Singapore’s Project Guardian to prove that tokenisation enables less liquid alternative funds to be included in separately managed wealth management portfolios.

• Provenance Blockchain is also working with NAV Lend to add liquidity to alternative investments by developing so-called “NAV loans” in which investors can borrow against the value of long-term investments in private equity funds with the lien on the investment recorded in a digital asset registry maintained on-chain.

• Provenance Blockchain predicts that regulated Stablecoins which yield an income will develop into a scalable asset class comparable with tokenised money market funds invested in US government securities, with full financial reporting by issuers, independent custody and (unlike the funds) peer-to-peer tradeability.

• Despite its own focus on finance, Provenance Blockchain argues that its provision of private “zones” enables users to escape the risk of being trapped in closed networks by private blockchains (however perfect for a particular use case) and the risk of losing their investment once an oligopoly of interoperating public blockchains is established.