David Nicol presents on Digital assets at Sibos 2019.

1. © 2019 NTT DATA Corporation
23 September 2019
David Nicol
R3
Digital Assets and the Future of
Capital Markets

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Digital Assets are agreements or data points, represented
on a database
• Blockchain is the latest system
to coordinate what a database
shows.
• A native asset uses the
blockchain database as the
system of record.
• An asset-backed token is a
pointer to the system of record
elsewhere.

3. © 2019 NTT DATA Corporation 33 Source: Technological Revolutions and Financial Capital by Carlota Perez
A brief history of tokenization

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Only for capital markets?
4
New Capital Markets is the top use case,
creating capital markets opportunities from
other industries is the next use case,
… and digital assets also add value outside of capital
markets as a cross-cutting enabler.

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As blockchain technology is
deployed in finance, we get:
New tools for capital formation
Improved accessibility
Better asset management

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Capital Markets Ecosystem Map
6
Each service is provided by a different party

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Digital Asset Value Chain
7
Issuer Investor
Issuance
Registration
Exchange
Settlement
Management

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What is R3 doing?

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Corda supports a vibrant digital asset ecosystem
Digital Asset Issuers Market Infrastructure
Providers
Digital Asset Investors
Buy-Side
Corda Token SDK
Products & Services
9

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The Token SDK improves the developer experience in
creation, issuance, movement and redemption of tokens
Why now?
Why should developers
care?
Why Corda?
• Bring new sources of capital
into different markets
• Automate asset management
• To improve liquidity and
access for new capital markets
products
• A common language: Standard
token types
• A standard interface: A
developer-friendly experience
• Corda foundation: Use states,
contracts, and flows to create
applications and tools that work
for business
• Privacy: Peer-to-peer
transaction level architecture
• Scalability: Nodes only
communicate when they are
party to a transaction
• Finality: Corda transactions are
final and irrevocable once
confirmed.

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Corda Settler
1
Corda Settler Transaction
Obligation
‘primed’
Deferred
settlement
Instant
settlement
Transaction Flow

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The Cash Issuer is an open source CorDapp template that
creates cash tokens (fiat-backed stablecoins) for Corda
ecosystems, based on money in a bank account.
Bank accounts
Party A: $50k
Party B: $60k
Issuer: $0
Party A
Party B
Issuer
Bank balance transfer… leads to… token creation on Corda
Party A Party B
DvP
Asset vs Payment

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Market-Facing Activity

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Primary
Market
Services
New Digital
Tokens
Tokenizatio
n of Existing
Assets
Non-
bankable
Assets

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Digital Asset Working Group
• Initial closed-door ‘DAWG’
concluded in June with DAWG
report. 53 firms and 100+
participants.
• Ongoing ‘DAWG’ continues as
quarterly update on digital asset
space – open to all clients,
partners, & prospects.

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Corda Settler is integrated with SWIFT gpi link
• Open source CorDapp that allows
two parties on Corda to create an
obligation for how and when they
will settle a Corda transaction.
• Integration with SWIFT gpi in PoC
– delays due to bank readiness.
• Other integrations planned

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Thank you!
Digital.assets@r3.com