loading...

Solutionsto FinTech Industry

Ziddu Smart Contract Solutions within the FinTech Industry

Warehouse Financing / International Trade Finance

Industry Size
A financial institution engaged in warehouse financing will usually designate a collateral manager who issues a warehouse receipt to the borrower that certifies the quantity and quality of the stored goods or commodities. The industry is worth over $6 Billion.
Source: https://www.slideshare.net/technavio/global-trade-finance-market-2016-to-2020

Ziddu Solution
  • Local Banks act as escrow agencies in International Trade and Warehouse Financing, but they charge non-trivial fees for this privilege
  • Ziddu consensus settlement tokens eliminates the need for Banks. Funds can be released in real-time, subject to Bill of Lading, Origination Certificates, Insurance and Delivery of Logistic Systems


trade-finance-ziddu-blockchain

Industry Scenario
The $1.6 Trillion Trade Finance Gap persists despite FinTech breakthroughs. According to an Asian Development Bank (ADB) Brief, Asia's share of the trade finance gap was 40% of the global total. In its fifth annual study, 2017 Trade Finance Gaps, Growth, and Jobs Survey, ADB quantifies market gaps for trade finance and explores their impact on growth and jobs through a survey of over 515 banks and 1,336 firms from 103 countries.
Source: Global Trade Finance Gap Reaches $1.6 Trillion, SMEs Hardest Hit – ADB

Micro-lending

Industry Size
The peer-to-peer lending market such as Circle Back lending, Lending Club, Peerform, Prosper and Upstart will grow tremendously and will post an impressive of CAGR of more than 53% by 2020. In addition to increasing the growth opportunities of different customers, peer-to-peer or p2p lending also helps companies reduce costs and claims.
Source: Peer-to-Peer lending Market

Ziddu Solution
  • Ziddu Smart Contract provides disintermediation and potentially balanced reduction of institutional lending
  • Ziddu uses Blockchain centric spending like smart mobile wallets do, in a way that is similar to what we see in a Credit/Debit card limits
  • The smart contracts will be coded in such a way that allows multiple parties to lend to other parties
  • The distributed ledger marketplace offers new distribution channels


FX OTC Derivatives

Industry Size
OTC derivatives are significant in some asset classes: Interest rate, foreign exchange, stocks and commodities. The notional amount of outstanding OTC derivative contracts amounts to over $542 trillion. Foreign Exchange swaps and forwards, which are widely used by corporations to hedge their currency exposure, account for a growing share of the $5 trillion-a-day forex market.
Source: https://www.bis.org/publ/otc_hy1711.htm

Ziddu Solution
  • Ziddu Smart Contracts can settle real-time derivatives between Buyers and Sellers in OTC/FX Options
  • The post trading settlement costs are heavy to clearing houses and Swift Networks are serving as intermediaries
  • Ziddu smart contracts eliminate the middle man

Bullion Finance

Industry Size
Bullion loans use bullion as collateral or secured precious metals such as Gold, Silver, Platinum and Palladium in the form of bullion bars, rounds and coins, Bullion credit lines are ideal for individuals investors and dealers who desire to finance a portion of their bullion purchase. The Bullion finance amounts to over $5.4 trillion a year or $21.6 billion a day.
Source: https://www.revolvy.com/main/index.php?s=London%20bullion%20market

Ziddu Solution
  • Once proof of concept is committed as a Smart Contract in Ziddu Ethereum Blockchain, it is very difficult to undo it
  • Whole Bullion Smart Contract converts the Trade / Work Flow into Electronic legally binding representation
  • As soon as you agree to the legal terms, you can especially represent anything you want


Structured Products

Industry Size
Fixed income securities generate regular income, reduce overall risk and protect against the volatility of a portfolio. The structured products of fixed income smart contacts are about $15 trillion.
Source: http://www.investinganswers.com/financial-dictionary/bonds/barclays-capital-us-aggregate-bond-index-3021

Ziddu Solution
  • Post Lehman Crisis, The Counter Party Risk has been the biggest threat to the industry
  • Ziddu Smart Contracts can create Structured Notes that don't have access to client funds, but still allow participants to settle the Pay-offs
  • Enabling people to create Structured Notes without putting trust on the central party, Ziddu Smart Contract settles the Pay-offs in T+0 by-passing clearing houses / Banks who charge significant amounts