Real-Time Exposure Visibility

Replace fragmented spreadsheets and delayed reports with a single source of truth. A shared, permissioned ledger provides real-time visibility into exposures across all trading desks, subsidiaries, and partners. This eliminates the "blind spots" that lead to unexpected losses and regulatory fines.

• Example: A global bank can instantly see its aggregate exposure to a corporate client across loans, derivatives, and repo transactions, enabling proactive risk management.
• ROI Impact: Reduces operational risk and capital reserves by up to 30% through more accurate risk-weighted asset calculations.

Streamline the complex, error-prone process of managing collateral obligations. Smart contracts automatically calculate margin requirements based on live market data and trigger calls or payments, creating an immutable audit trail.

• Example: In a derivatives trade, a smart contract can autonomously verify collateral sufficiency and issue a margin call if the value drops below a threshold, settling in minutes instead of days.
• ROI Impact: Cuts settlement times from T+2 to near-instant, freeing up billions in trapped capital and reducing disputes and associated legal costs.

Move from invoice-by-invoice tracking to holistic exposure management. Tokenize purchase orders, invoices, and inventory to create a transparent, real-time ledger of financial obligations and asset-backed positions from Tier-1 to Tier-N suppliers.

• Example: An automotive manufacturer can see its financial exposure to a specific battery supplier in real-time, including outstanding invoices, committed future payments, and inventory in transit.
• ROI Impact: Enables dynamic discounting and improves working capital efficiency by providing lenders with verifiable, real-time asset data, reducing financing costs.

Turn compliance from a costly, reactive process into a seamless, automated function. Every transaction and exposure calculation is recorded on an immutable, timestamped ledger, providing regulators with direct, read-only access for audits.

• Example: For Basel III/IV liquidity coverage ratio (LCR) reporting, a bank can provide regulators with a verifiable, real-time feed of high-quality liquid assets versus net cash outflows.
• ROI Impact: Slashes audit preparation time and costs by over 50% and minimizes regulatory penalty risk through provable, real-time compliance.

Problem: Financial institutions spend millions manually reconciling mismatched data across internal and external systems (custodians, exchanges, brokers). This process is slow, error-prone, and creates operational risk.

Blockchain Fix: A shared, immutable ledger acts as a single golden record. All parties see the same transaction state simultaneously, eliminating the need for reconciliation. This reduces operational overhead and frees capital tied up in dispute resolution.

Example: A global bank reduced its trade settlement reconciliation team by 70% and cut associated operational costs by an estimated $15M annually by implementing a shared ledger for securities transactions.

Problem: In complex derivative or lending networks, exposure to a single counterparty is hidden across dozens of internal ledgers. Risk teams get a fragmented view, leading to unexpected concentrations and potential defaults.

Blockchain Fix: Smart contracts automatically calculate and publish net exposure positions in real-time. Risk dashboards pull from the live ledger, not stale reports, enabling proactive management.

Example: A commodities trading firm uses a permissioned blockchain to track all forward contracts. The CFO now has a real-time dashboard showing net exposure to each counterparty, allowing dynamic adjustment of credit limits and collateral requirements, reducing potential default risk by an estimated 30%.

Problem: Compiling reports for regulations like Basel III, MiFID II, or SOX requires aggregating data from siloed systems—a costly, manual process vulnerable to errors and audit findings.

Blockchain Fix: The immutable audit trail and programmability of a unified ledger allow for automated, regulator-friendly reporting. Data provenance is built-in, and smart contracts can generate standardized reports on-demand.

Example: An insurance consortium built a blockchain for reinsurance contracts. They now generate Solvency II capital requirement reports in hours instead of weeks, with a verifiable audit trail that reduced external audit costs by 40%.

Problem: Capital and high-quality collateral are trapped in siloed processes, unable to be netted or re-hypothecated efficiently. This leads to increased funding costs and lower returns on assets.

Blockchain Fix: Real-time visibility into asset ownership and obligations across the network enables dynamic collateral management. Smart contracts can automatically net positions and mobilize idle collateral.

Example: In securities lending, a unified ledger allows participants to see all lending/borrowing activity. One asset manager increased its collateral velocity by 25%, freeing up $200M in capital for higher-yield investments, simply by having a complete, real-time view of its collateral positions.