Institutions

Removal of costly legacy systems

Traditional exchanges face challenges with outdated legacy systems, leading to inefficiencies, slow transaction processing, and high operational costs. $0X pioneers advanced technology for streamlined operations and improved user experiences at a reduced cost. This sets the stage for other institutions to upgrade their technology, enhancing efficiency and positioning $0X as a market leader. Additionally, blockchain's settlement and clearing management can save costs and time for new and existing institutions.

Fund manager efficiency

Faster and transparent settlement processes in financial markets offer several advantages for funds. They reduce default and systemic risks, optimize capital utilization, and lead to increased operational efficiencies. Automation of fund services also reduces fees paid to third-party providers for services like accounting, administration, and custody.

Mutual Fund Administration

Blockchain technology can revolutionize mutual fund administration by automating tasks, enhancing transparency, and improving security. Fund management benefits from secure and real-time data sharing, reducing errors and improving efficiency. Blockchain streamlines entity registration with unified and verified records, reducing costs and enhancing compliance. Additionally, blockchain automates various fund operations, providing a transparent and immutable record of activities. Funds can leverage blockchain to explore new markets, create innovative products, and share compliance information with regulators, fostering trust and integrity in the mutual fund industry.

Ease of collateral managment

Blockchain technology offers an efficient solution to the current inefficiencies and delays in collateral management. By digitizing collateral holdings on a public blockchain with appropriate permissions, transparency is enhanced, enabling easy verification of accounts and financial positions. Smart contracts automate margin calls and rules, optimizing collateral management. Collateral tokens on the blockchain enable real-time settlement and faster processes, benefiting both institutions and clients. Overall, blockchain streamlines collateral management, making it more responsive to market conditions.

Issuance efficiency

$0X leverages programmable digital assets and securities, offering issuers easier, cheaper, and faster access to capital. Issuance becomes streamlined, allowing for automated rights and obligations encoding. Fractionalization of assets increases liquidity and investor diversity. $0X reduces barriers to asset issuance, providing opportunities for smaller issuers to access capital. Smart contracts and blockchain technology automate the entire asset lifecycle, from investor servicing to event handling. This innovative approach to issuance opens up new possibilities, streamlining capital-raising and expanding market opportunities.

Post-trade services and infrastructure

Post-trade services face inherent risks in the financial landscape, with global costs estimated at $17 billion to $24 billion annually (Consensys, 2023). Blockchain technology offers automation and enhanced security, streamlining post-trade processes, reducing errors, and eliminating intermediaries. This improves efficiency and settlement times. The decentralized nature of blockchain ensures real-time data sharing and validation among participants, fostering trust and accuracy in the settlement process.