How our blockchain technology works together to usher in the future of trading
By Vanessa Malone
There is a lot of hype in the blockchain industry with companies making claims about what they ‘will’ create, or even more detrimental, making false claims about the capabilities of their existing companies. We’ve always liked the approach of coming to the market with live and proven technology solutions.
4 years in the making, we believe Horizon’s blockchain technology stack covering securities issuance through to secondary trading and settlement will usher in the next generation of trading.
Very soon the power of Horizon’s entire blockchain technology suite will be on full display with the upcoming launch of Upstream, a revolutionary stock exchange and trading app for digital securities.
Last week we discussed the power of Upstream as an Ethereum layer 2 solution. This week we want to share Horizon’s individual software solutions that seamlessly integrate to make up our blockchain trading system.
- ETSware is Horizon’s digital securities creation and issuance platform which is designed to turn illiquid securities intoelectronically tradeable assets. We offer a hands-on approach to securities issuance, collaborating directly with an issuers’ team to understand and implement unique regulatory, and operational requirements directly into the digital securities.
- KYCware is Horizon’s KYC compliance technology. KYCware works to compliantly verify investors’ identities using a white-label, high-touch onboarding app. As KYCware is integrated into Upstream, traders will see just how streamlined the process becomes during the onboarding stage. KYCware goes further than identity verification; with app questions and forms auto-adjusting according to user entries in order to meet compliance and investor suitability requirements globally across jurisdictions. Notably, sensitive data is never saved to disk on our servers and never outsourced to third parties. To further protect investors, a hash-record of all KYC submissions is logged on Ethereum.
- AMLcop is Horizon’s AML compliance technology. AMLcop technology continually screens investors and traders against Horizon’s proprietary database of global sanctions, politically exposed persons (PEPs), and watchlists. Instead of just a one-time check, our lists are updated daily and investors are scanned on a continual basis to enhance issuers’ AML efforts even after a primary issuance. This also comes in handy later in the life-cycle for issuers offering dividends or seeking to list on a regulated trading venue like Upstream.
- Custodyware is Horizon’s cap table management and dividend payment technology. The solution enables U.S. transfer agents, registrars and custodians to manage digital securities, pay dividends with the click of a button, and make trading venue transfers. Custodyware also works to protect investors and issuers with transparent and immutable storage of up-to-date shareholder records.
- Open Order Book is Horizon’s next generation trading software which features a blockchain-powered matching engine, integrated cash-custody service, and investor protection technologies. Upstream and other markets using Horizon’s technology will feature a transparent orderbook with best bids and offers transparently displayed on a public orderbook. The orders you see will come from other investors in the community to maintain an accurate and fair marketplace.
All of our solutions work on their own but together they make up a powerful trading system that will be powering Upstream. Upstream’s real-time exchange and trading app leverages Horizon’s Ethereum layer-2 blockchain technology to introduce a next generation trading experience. Investors will gain direct access to the exchange through a userfriendly trading app. They will also be able to participate using both digital currency in the form of USDC stablecoin and traditional bank and credit/debit card payments. With real-time trades and settlements, the trade and transfer of ownership will take place immediately.
We are thrilled to not only have a complete blockchain trading system but to also introduce Upstream as an innovative, live use case for the power blockchain technology can have when it comes to securities issuance and trading.
Stay connected for the latest updates.
Horizon is a fintech company that builds and powers global securities exchanges with an integrated suite of software for compliant issuance, management, and secondary trading of securities. Our in-house solutions combine Wall Street and Silicon Valley to power the next generation of securities offerings and trading in the U.S. and globally. Learn more at https://www.horizonfintex.com/.
Upstream, a MERJ Exchange Market, is a fully regulated global stock exchange for digital securities. Powered by Horizon’s proprietary matching engine technology, the exchange will enable investors to trade shares in IPOs, crowdfunded companies, US & Int’l. equities, SPACs and celebrity ventures directly from the app https://upstream.exchange. Interested issuers can reach the team at firstname.lastname@example.org.
THIS BLOG SHALL NOT CONSTITUTE AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION IS NOT PERMITTED. US INVESTORS ARE NOT PERMITTED TO TRADE IN UPSTREAM LISTED SECURITIES.