Blockchain-based layer designed specifically for the offering, management and trading of digital securities. The set of smart-contracts have built-in regulatory rules and operation types. It is distinguished by a level of sophistication that makes it suitable for large financial institutions. The Network is open-source and offers an open API for anyone looking for issuing securities or launching securities-related business.
The Mission
Drastically simplify operations with securities as much so that:
Every business would store its securities on the distributed ledger technology (DLT) infrastructure
Starting and conducting business related to securities would become simpler and cheaper
Decentralized Registry
The underlying layer of the network is a registry of users, assets, and user balances.
Users
Users on the platform are characterized by their roles and attributes, which define their permissions on the platform. Examples of roles attributes include jurisdiction, legal or natural person, professional investor status, risk score, company affiliation, etc. Regulatory and corporate rules define what users can do depending on their attributes - whether they can invest and how much, transfer restrictions, need for transaction approval, etc.
External Monitoring
User roles on the platform include auditors and regulators. They are able to view transactions related to certain issuers (auditors) or jurisdictions (regulators). This makes Network suitable for regulated entities and reduces counterparty risk.
Privacy
Unlike in public chains, the registry of Stobox DLT Network is encrypted and not open for everyone, including Stobox itself. User roles and attributes define what information is available to them. This is a crucial requirement for any system in which identities of all users are known.
Assets
Assets are also characterized by a set of attributes that depend on the type of asset. Network supports a wide range of assets - shares, bonds, structured notes, derivatives, etc.
MVP of the network includes shares only.
MVP of the network includes shares only.
Personal Securities
A particularly curious case that Stobox Network will enable are personal securities. There are contracts where a person receives funds, e.g. to pay for college tuition, and is obliged to share some of its personal profits later in life. Personal securities are a powerful tool to escape poverty and are likely to gain popularity when enabled by Stobox technology.
All users of the Stobox DLT Network pass KYC procedure - a crucial requirement for regulated operations. Network supports a single sign-on, which means that users get access to all applications built on top of the network using a single account. SSO facilitates collaboration in the network.
Stobox Network Layers
Additional layers on top of the registry define ways in which the registry may be updated and the rules that govern these operations.
Regulatory Layer
A key part of Stobox DLT Network is a regulatory layer, which contains real-life rules to which securities abide. When creating a security and an offering, an issuer chooses which of the rules apply to it. The distinctive feature of Stobox layer is its level of sophistication: it includes not only rules for securities offerings but also other rules from corporate law and financial legislations, such as pre-emptive right, delivery versus payment, etc.
Automated enforcement of compliance reduces operational expenses on transaction verification and monitoring. Furthermore, it also reduces legal risk of approving or conducting wrong transactions, which may result in fines and license suspension.
MVP of the Network will include only rules for securities offerings in the EU and the US.
Automated enforcement of compliance reduces operational expenses on transaction verification and monitoring. Furthermore, it also reduces legal risk of approving or conducting wrong transactions, which may result in fines and license suspension.
MVP of the Network will include only rules for securities offerings in the EU and the US.
Operations Layer
Stobox Network has main operations that can be conducted with securities built into it. As with regulations, operations layer exceeds industry standards and includes not only securities offering and basic corporate actions, but also things like securities lending and borrowing, corporate governance, rights issues, etc.
MVP of the offering will include distribution of shares and securities offering.
MVP of the offering will include distribution of shares and securities offering.
Internal Transaction Settlement
Internalization of settlement enables satisfaction of delivery-versus-payment principle and reduces risks for all participants of the Network.
Internal Payments
Finality of the transaction settlement requires cash to be transferred alongside securities. Primary way in which this will be done is through internal payment token pledged to USD by 1 to 1 rate. The token may be purchased for any type of currency and used for internal transactions. Funds may be "withdrawn" from the platform by selling the token back to Stobox.
Payment token does not represent a separate value and cannot be sold or purchased on other venues, does not change in value. Fiat funds will be stored in an Escrow, and crypto currency will be stored in a smart contract from which neither Stobox nor any administrator cannot withdraw them, thus ensuring that clients can always withdraw funds from the Network in a full amount.
Payment token does not represent a separate value and cannot be sold or purchased on other venues, does not change in value. Fiat funds will be stored in an Escrow, and crypto currency will be stored in a smart contract from which neither Stobox nor any administrator cannot withdraw them, thus ensuring that clients can always withdraw funds from the Network in a full amount.
From the user perspective purchasing a token is equivalent to depositing funds into an account. The difference is only in legal structure: when the funds are deposited, Stobox is liable for holding other's assets; when the tokens are purchased, ownership of assets is changed, and no excessive liability appears.
Network Partners building solutions on top of it may build integrations with external payment processing services if it works for their business.
Network Partners building solutions on top of it may build integrations with external payment processing services if it works for their business.
Technical Features
Below are some of the key features of Stobox DLT Network and what differentiates it from other distributed ledger technologies.
Permissioned architecture
Enables multiple private entities share benefits of a single network without sacrificing confidentiality
Highly modular
Modularity facilitates adding additional custom layers, upgrading and supporting the system
Open smart contract model
Flexibility to implement any desired solution model
Low latency of finality/confirmation
Low risk of error, scalability in terms of transaction speed.
Flexible approach to data privacy
Data isolation using 'channels', or share private data on a need to-know basis using private data 'collections'
Designed for continuous operations
Including rolling upgrades and asymmetric version support
Customization
Stobox Network is designed to be used by a wide community and can be tailored to the needs of each Network member.
Flexibility
The system is highly customizable. It enables creating new user roles, new types of assets and operations with custom flow, custom UI/UX for each user, etc. Such flexibility allows it to be used by businesses and software developers in a way most suitable to them, adapting tech to business and not vice versa.
3-rd party development
This also contributes to the development of the network, as developers may make features they have built available to other network participants, enhancing its functionality and value.
API
The goal of the Network is to facilitate conducting business with securities. For this reason, it offers an open API to participants of the securities industry - now you can build solutions on top of Stobox DLT Network and provide service to Network Members. Several types of APIs are available.
Network Member API
Network Member API is a fit for your company if you want to use Network only to work with your own securities. It allows you to digitize securities ownership and manage transactions, corporate governance and corporate actions in a single interface tailored to each issuer. Network Member API also allows to raise funds by offering securities to investors around the globe.
It may be especially beneficial for financial institutions, which now may offer securities to retail clients and reduce entry barriers, as their investors will be managed in a convenient digital dashboard.
It may be especially beneficial for financial institutions, which now may offer securities to retail clients and reduce entry barriers, as their investors will be managed in a convenient digital dashboard.
Network Partner API
Stobox Partner API is a fit for you if you wish to set up your own securities-related business. Examples of business that may be built on top of Stobox Network include:
Network Partner API provides you with a separate environment where you can onboard clients, manage them in your dashboard, set transaction limits, approve or reject transactions, collect fees, etc. You can set an additional layer of rules for your venue, although they cannot contradict regulatory rules. You can add custom functionality to achieve your goals.
As Stobox Network is an API-driven infrastructure, its evolution is dependent on collaboration with multiple complementary partners building solutions on top of the Stobox chain. Stobox kindly welcomes participants to the development of the Network.
- Tokenization platform
- Crowdfunding platform
- Startup Accelerator
- Asset Management
- Securities Custody
- Brokerage
- Securities Exchange
Network Partner API provides you with a separate environment where you can onboard clients, manage them in your dashboard, set transaction limits, approve or reject transactions, collect fees, etc. You can set an additional layer of rules for your venue, although they cannot contradict regulatory rules. You can add custom functionality to achieve your goals.
As Stobox Network is an API-driven infrastructure, its evolution is dependent on collaboration with multiple complementary partners building solutions on top of the Stobox chain. Stobox kindly welcomes participants to the development of the Network.
Service Provider API
Service Provider API enables third parties to earn by providing services to Network Participants.
The goal is to enable issuers to obtain all services they need in a single system.
Examples of external providers include:
The goal is to enable issuers to obtain all services they need in a single system.
Examples of external providers include:
- AML/Transaction monitoring service
- Legal management provider
- Securities Exchange
- Payment Processor
- Brokerage
Join Stobox DLT Network
Early-bird registration form
Early-bird registration form
By filling this form you show an interest in registering with Stobox as an individual investor, corporate issuer or a network partner. Once Stobox Network goes live (Q4 2020) we will contact you and provide with additional instructions. Please keep in mind that Stobox applies KYC and AML policies to every member of the Network regarding the jurisdiction or status.
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All rights reserved | 2018-2020
Stobox Technologies, Inc. is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage or cryptocurrency services. Stobox takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.
Stobox Technologies, Inc. is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage or cryptocurrency services. Stobox takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.
contacts
Stobox OU
Harju maakond, Tallinn, Kesklinna linnaosa, Roseni tn 13, 10111, Estonia
Stobox Technologies Inc.
1047 Brighton Beach Ave.Brooklyn, NY 11235, USA
[email protected]
Harju maakond, Tallinn, Kesklinna linnaosa, Roseni tn 13, 10111, Estonia
Stobox Technologies Inc.
1047 Brighton Beach Ave.Brooklyn, NY 11235, USA
[email protected]