Automated Hedging Execution & Settlement

Move from T+2 settlement to atomic settlement (T+0). Smart contracts automatically execute payments upon fulfillment of contract terms, eliminating the need for manual reconciliation, nostro/vostro accounts, and associated fees.

• Example: A multinational corporation hedging FX exposure can see settlement costs drop from thousands per transaction to near-zero.
• ROI Impact: Reduces operational overhead by up to 80% and frees up billions in trapped capital.

Replace credit risk with collateralized smart contracts. Pre-defined margin requirements and automated liquidation mechanisms are enforced on-chain, removing the need for complex bilateral credit agreements and constant exposure monitoring.

• Real-World Analogy: Functions like a central clearing counterparty (CCP) but without the centralized intermediary fees and single point of failure.
• Business Value: Drastically reduces default risk and capital reserves required for over-the-counter (OTC) deals.

Execute hedging strategies based on real-time, tamper-proof data oracles. Smart contracts can trigger positions automatically when market conditions hit predefined thresholds, capturing opportunities outside traditional market hours.

• Example: An airline can automatically buy fuel hedges the moment a geopolitical event causes oil prices to spike, even on a weekend.
• Strategic Advantage: Transforms treasury from a reactive cost center into a proactive profit-protection unit.

Every trade, margin call, and settlement is recorded on an immutable, shared ledger. This provides regulators and internal audit with a single source of truth, dramatically simplifying reporting for regulations like EMIR, MiFID II, and Basel III.

• ROI Impact: Cuts compliance reporting time and cost by over 50%, while providing irrefutable proof of execution and best execution practices.
• Key Benefit: Shifts compliance from a defensive, document-heavy process to a transparent, verifiable state.

Access a global pool of decentralized finance (DeFi) liquidity for hedging instruments. Corporations can become liquidity providers, earning yield on their treasury assets, or source competitive rates from a broader market beyond traditional banks.

• Example: A firm with stablecoin reserves can provide liquidity to a decentralized options protocol, earning fees while their capital remains usable for hedging.
• Strategic Shift: Transforms the treasury balance sheet from a static asset into a yield-generating, strategic tool.

Manage complex hedges involving multiple counterparties and jurisdictions on a single, synchronized platform. Smart contracts codify all obligations, automating payments in various currencies or digital assets and removing forex conversion layers.

• Pain Point Solved: Eliminates the operational nightmare of coordinating payments and confirmations across 5+ different banks and legal entities.
• Business Value: Enables more sophisticated, capital-efficient hedging strategies that were previously too complex to administer.

The business case consolidates around three pillars:

• Cost Reduction: Slash back-office, reconciliation, and intermediary fees by 40-70%.
• Risk Mitigation: Eliminate settlement and counterparty risk with atomic settlement and transparent collateral.
• Capital Efficiency: Unlock trapped capital through 24/7 markets and programmable, self-executing contracts. Bottom Line: This isn't just a tech upgrade; it's a fundamental redesign of financial operations for accuracy, speed, and auditability.