Bring transparency, simplicity and efficiency to all your financial transactions.
What if we could revolutionize the financial world by replacing old processes and paperwork with new methods of cooperation, innovation, and speed? What if fraud and crime could be reduced by a shared view of the truth that is highly secure? Blockchain for institutional finance answers those questions.
Central banks and governments are already setting the pace with Lattice Networks’ scalable and secure Layer 1 blockchain network, working together to streamline interbank settlements, reduce counterparty risks, create new solutions and more. Now it’s your turn to join them. What will we solve together?
Important concerns and issues in institutional finance include security, transparency, trust and scalability.
Blockchain is likely to have the most impact across the entire spectrum of front-to-back processes and operating metrics of an investment bank.
Finalizing a transaction involves a number of steps, including execution, clearing, and settlement.
Reliance on third-parties
The process requires intermediaries for two crucial functions:
- Creating trust: Intermediaries act as trusted third-parties, ensuring that the seller has sufficient funds and that payments are subtracted and added correctly. Additionally, they offer buyer protection for counterparty risk - if their goods fail to arrive or do not match what was promised.
- Establishing security: intermediaries validate identities
Stock exchanges, payment providers and brokers, match buyers and sellers for transaction execution. When securities are traded, a central counterparty (CCP) often acts as the buyer for all sellers and the other way around. The goal is to minimize the risk of failed trades.
Single point of failure
The current situation, in which payment delays may last for up to multiple days, is often referred to as "T+3" by industry insiders.
International settlements can be complicated because they involve multiple custodians, different settlement cycles, currencies, and legal systems.
Slow international operations
High fees and custodial risks
Intermediary services increase transaction costs, because of the time and resources that must be devoted to maintaining a relationship with these third parties. The use of custodians can expose market participants to custodial risks because the lists of intermediaries are often long and the identities of those listed are often not transparent.
Increased transaction costs
The Latice Network solution
Lattice Networks blockchain establishes trust and security through the use of a decentralized network rather than centralized third-parties.
Cutting out intermediaries can reduce time, cost, and risks associated with clearing and settling transactions. Blockchains provide a similar level of transactional safety while eliminating custodial risks.
No single point of failure
No custodial risks
Almost instant and lower cost
Blockchains, which use shared and decentralized ledgers, are able to facilitate settlement in a single step and at a much lower cost, making T+0 a reality.