Smart Contract Oracles Proof-of-Concept

Connecting Smart Contract Securities to Market Data and Existing Payment Rails

Sponsored by and in collaboration with

(smartcontract.com)

The Ongoing Hype about Blockchains

• Blockchains are going to revolutionize the entire securities trading environment!

• Smart contracts, code running on the blockchain will digitize existing asset classes into “Smart Securities”!

• Putting these technologies together will streamline back office operations and offer exciting new trading opportunities!

But Nobody is Adequately Addressing…

• How will blockchains interact with your existing systems & payment rails?

• How will asset servicing work for smart securities? (corporate actions, dividend payments, collateral management …)

• What about regulation and compliance’s interaction with smart securities?

Interest Rates Payment Network

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MarketRate

SmartContract

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Smart ContractSecurity(Bond)

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Smart Contract Oracles

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PoC: Fully Connected Smart Contract Securities

Interest Rate

Interest Rate

Interest Rate

Market Rate

Payment Confirmation

Confirmation

Payment

Bank Rates

Interest Rates Combined into a Market Rate

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Key Benefits Key Questions

Transparent & fully trustworthy market interest rate calculation

Free shared reference data created without data providers

On-chain privacy of individual bank rates and shared data?

Use of oracles to provide data to smart contract securities?

Smart Bond

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Market Rate SCBank OracleBank Interest Rate

Interest Rate

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Market Rate

Smart Contract Securities with Finality

Key Benefits

Efficiency gains from smart contract securities?

Ease of applying existing securities workflows?

Key Questions

Use of existing securities workflows for legal finality

ISO 20022 compliant smart contract code for standards

Payment to Existing Accounts on Existing Rails

Smart Bond

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Global Interest Rate Bank Oracle

Global Rate

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SWIFT Network

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Smart contracts pay existing accounts over existing rails

Smart contracts hold off-chain events as a complete record

Key Benefits Key Questions

Ease of integrating existing payment mechanisms?

Smart contract’s ability to hold all key off-chain activity data?