 So the recording will be available on the meeting page and also possibly on YouTube or something So that's that's that's all for now, I don't see Richard on the call anymore, maybe he You got kicked out anyway So I'm going to ask Richard who is the Who I've had flesh I had a pleasure of working with on the early days of our three In the architecture working group and Started this organization called lab 577 and Richard can't explain everything About how what what their products are and how it's going to disrupt the financial markets infrastructure Thanks Richard for showing up and I think Richard is going to To do is think Can you hear me vivid yeah, I can hear you and I can see your screen Excellent, well, I'm getting there then let's let's start the ball rolling. We don't have many participants on the call. So What I would ask you to do is if you've got questions do do feel free to throw them out I might not answer them immediately am I park them and come back to them But what I'm interested to do is is walk through the slides relatively rapidly and then turn it over to Q&A We've got a full hour But if the questions try up we can we can definitely hand this over and and close it down and I Normally don't hear the code of conduct being read so so well Normally, it's the antitrust law being lectured to us So it's really nice to hear the code of conduct once in a while So Richard crook I run lab 577 I'll go into a bit more detail of my background and as part of the the slides but what I wanted to do to today was Just as the description on the on the talk spoke of we'll give you a description of the platform Which brings together some of the pieces we've been working on and hopefully give you a more holistic view of the solution where we've got now a number of number of projects number of brands out there All of them are interlocked and they're Wanted to give this as an opportunity to to members Recognize what we're doing and maybe see where that takes us as a journey. Okay. Um Just working through these slides Let's start with the start with the start so Richard crook I stepped out of Royal Bank of Scotland took my team with me. We were running the emerging tech team over there back end of 2018 And in doing so we stood up a company called lab 577 Which sits in the nexus between financial services and emerging technology emerging technology for us our AI Quantum blockchain where the predominantly a large chunk of our time right now is being spent on blockchain Distributed ledger if you will and that comes from a Lot of work we did in the early days my team and I boat cover when we backed ripple into The FX wholesale training desk of RBS. We built a distributed ledger for The five Irish banks and that allowed us to recognize things like the privacy requirement and realize we needed a finance Into my current which will get you to take it to series a We let them grow quarter until about version three I think it was back in a 2017 when many people were watching the Bitcoin price go through the roof and we were watching a financial battle my team and I Recognize the killer feature of accounts and tokens and we could see that they Need here was a best of breed of bringing accounts and tokens out of a theorem and getting that functionality into quarter Which will give us both privacy and the the accounts and token functionalities. We did that back in back in a 2017 Boat cover with it in 2018. We released it Mostly from the legal perspective to rid RBS of its liabilities Into open source There was no desire to make money out of that what we were doing was attempting to Accelerate the quarter community and that's really what cordite as an open source project has been doing and It's been driving new disruptive controversial features into the quarter space and also We have always had an eye on the convergence of both crypto and what we would describe as enterprise blockchain Well, we knew that the mainstream financial space would come together with crypto And we wanted to to be part of that journey So cordite from that perspective is an open source project More than welcome to to dive into the code. There's a fair amount of code right now pretty much anybody in the quarter space Finds themselves using a bit of cordite Usually the network map service is the first place they find themselves using cordite Others have started to use the tokens the accounts one of the pieces that was long forgotten was the First digital mutual or the mutual society where we went to the FCA sat in their sandbox and created a Cooperative a UK cooperative that we call the mutual a digital mutual That has been gaining dust over the last couple of years. It was too early We couldn't get the the type of traction we wanted with it People were still very much in the in the mindset of tokens at the time But we recognize that one of the great use cases of Distributed ledger was in the concept of decentralized finance The idea that you could bring a small group together syndicate And I use the word syndicate because you see syndicates in the insurance space with Lloyds You see syndicates in the lending space under syndicated loans We recognize the strength of using blockchain as a way of pulling together Parties to act as one under a legal structure early this year my team and I had a Opportunity to focus once more on This area and what we did was work to create a new digital currency This is the first digital currency on the quarter public network So for those you're not aware there is a public quarter network anyone can join that you have to pass the sort of basic ML CTF it's run by a non-profit out in out in Holland or Amsterdam and That public quarter network is available for anybody running a quarter node running a quarter app any consortiums business network operators are now starting to come together it from my perspective looks an Internet and the quarter space Exilos of small networks And now the conversation around interoperability Rages as we try and bring these these parties together So what we did was for XTC the digital currency is actually take that digital mutual off the shelf We Built some more functionality into it that would allow it to run and govern any digital currency From our perspective In lab 577 we were simply a consultancy Assisting the cordite society limited cordite society limited is a legal entity in its own right. It's actually Registered with the FCA not in the terms of providing regulatory Services, but actually that's where the register of UK cooperatives exists and under that Regulatory body we find that the cooperative has to operate within a set of rules. So there is actually Mutual and therefore digital currency Is an exchange token I'll go on to that in a little bit more in a second, but the Purpose of this was to first of release first exchange token onto the public quarter network provider supply of a Token that could be used as a digital currency within the public quarter network and Allow others to come and join that cooperative society Driving the adoption of that public quarter network and Allow others to follow our footsteps create their own digital currencies as The projects that are within that public quarter network start to wonder how to Actually make payments and deliver payments over the network Well, other than the pattern they currently doing which is make the payments outside the network and connecting outside into existing ledgers such a quick Walkthrough of cordite and XTC and I'll just pause there before we we step forward Well, any questions around that? I know we could get we could stuck on this for the the rest of the hour, but I'll I'll open it to the floor just then Anyone else questions, please ask Otherwise, I'll you know, I have some but I'll wait for you guys to To come up with questions I See that you are here Craig you probably have questions No questions Okay Good, okay, so obviously the websites, sorry if I've been you've got one. No, it looks like a money is Yeah I have a quick question How is this is Manipalai from swaps up? How is your digital mutuals different from Corda's business network and membership? It's there, you know promoting as a way to create business networks Not dissimilar and I'm really pleased you've you've made that connection. So what we recognized when we bought the five Irish banks together To build a distributed clearinghouse Was because they knew each other and they knew each other quite well They trusted each other and immediately they could create a legal entity that could run a centralized clearinghouse And at that point the conversation around should we use distributed ledger became a little less Useful and we could actually just run the clearinghouse for the database like we've done before and that led us to a conversation said well There's little point using a distributed ledger for a centralized business model. So Actually those business network operators that are standing up Consortiums on the public core network many of them are highly centralized at this time and They're looking for ways to operate that business network very much for the members and between the members and Therefore what we put on the table was a pattern if you wish to use that term a pattern of a legal structure that you could use and actually operate that legal structure on Corda itself, so there's a there's obviously a level of recursion or dogfruiting there which was important So really pleased you you picked up on that from our perspective the digital mutual is an exemplar of how we think you should run a business network on the public core network or or any other consortium or Business network operation doesn't really matter about the technology underneath And that's really what we were showing in the creation of that digital mutual back in 2018 Is it dissimilar to the ones that they have a product for our trade finance And other other areas and in case you didn't know money is Created now, you know, he's worked for a long time on corda and he has Trading platform that not only he looks at the This the payment side Like the XTC token, but also tries to connect it to the Front-to-back Asset trading so this becomes a payment leg Something like this becomes a payment leg for the asset exchange That's a that is a ambitious goal, but Yeah, we definitely will want to catch up later on Richard. I also be in touch with miles So we can we can we can talk about it later on No, absolutely you You're absolutely ahead of us in in many ways With with the platform you've got and the way you're operating it I think well, we all recognize when we look at financial market infrastructure, and if you just cast yourself For the last 25 years the banks have been focused on Their own internal systems and getting to efficiency or single sources of truth inside those banks for the next 20 years we have to bring banks together and Improve the interconnects between those banks and many of those interconnects are historic Built in the financial market infrastructure as we tend to call it and that financial market infrastructure has become bloated and high margin over time Because the banks weren't that concerned with the cost base now that the banks are concerned with the cost base They're driving and pushing hard on that market infrastructure, and that's why you're seeing a tremendous amount of Disruption and investment back into the financial market infrastructure So I think what we're showing here is different methods and different mechanisms that can be stood up We're very well aware having been on the on the inside as many of you have that The banks come together they create a piece of financial market infrastructure and then within a number of years it becomes Monopolistic or gains pricing power and they've created themselves a Problem or an issue or challenge that they have to then deal with at a different point in a different life cycle And That that is one end of the spectrum and some of the organizations that that have grown up the Bloomberg's the Reuters And a lot of the stock exchanges are well funded because they have that pricing power at the end of the spectrum many of you well aware of pockets of the financial infrastructure that is it is very underfunded because it is run as a non-profit and It is unable to sustain itself and no one loves it There is no one loves it is because it's under invested in and this challenge in the financial market infrastructure of how do we fund? pieces Continues to rage if we look actually at the public quarter network That's a conversation that has been going on now for two or three years where the public quarter network could become a Business line of our three But actually the members of work extremely hard and the and the Ecosystems work extremely hard to persuade our three not to try and own the public quarter network But because by doing so they will undermine it and they will turn it into yet another Monopolistic financial market infrastructure So that's why you're seeing the public quarter network actually being run by non-profit away from our three And actually our three is in the business of selling quarter enterprise and that Separation is really important for us to be successful with the the the vision of what we are expecting in The disruption that blockchain brings to financial market infrastructure Did that money we can catch up later on and how you could use XTC obviously welcome you into the mutual study Not suggesting this is how you should run The platform you're building just it is a pattern that we have we have shown and and are making obvious Yeah, definitely will catch up later on in you know, but yeah, it's very interesting. I've been following cordite for a while. So Okay, now Is there anyone else who has questions otherwise, I'll ask a couple more anyone else, okay So One thing you said was that this is purely for efficiency gains Do you see other? emerging Use cases or emerging sort of products that would Justify investment in these areas rather than just just looking for efficiencies Absolutely, so many of us came into this space not because of the efficiency gain We came into it because we had an interest in the creation of a digital currency Bitcoin and the innovation that that created We then moved and Spent a lot of time In what we would describe as the enterprise blockchain space, which is an efficiency play as I described it is the removal of the friction between or interbank rather than intro bank What and I will go on to Further slides to answer. I think the conversation around efficiency gains is Well, it's well matured now and actually we're now back to a conversation about top line and revenue And I think that's what takes us into tokenization So it's a really lovely question probably takes me into my next slide if there are any more questions on cordite I'm happy to get into that that top line opportunities and revenue opportunities that we are seeing in the capital market space. I Think you should get get on to that. Although I do have questions about cordite, which I'll ask later I'm always happy to answer questions on cordite. Call it for us is is a place for us to drop out disruptive and controversial features Others are doing the same in the cordite space and we always welcome others who are keen to try things out in an open source fashion where in fact they may not want to do it under their own commercial brands and from our perspective This continues to provide alternative business models to R3 and accelerate adoption For quarter into different of verticals. So that's what cordite is what it offers from our sector It's now very much operating independently of our three and lab 577 and in case now Western RBS Let me let me move on. Sorry. There was a question. No, no, no, go ahead So I think just just this will be Unbelievably preaching to the choir. So just bear with me because hopefully what it does is is just Allow us all to resonate on there on the same page. You will have noticed that I've not mentioned central bank digital currencies until now You'll also notice that lab 577 isn't Involved in central bank digital currencies Just a quick history The Bank of England first went out with this design paper for the UK RTGS in 1989 they went live with it in 1999 They then broke cover with their second-generation design paper in 2019 so it doesn't take much of a mathematician to work out that we're probably on track for a second-generation UK RTGS in So with that kind of multi-decade play I'm not that keen on getting involved in central bank digital currencies. It is a multi-decade play You need a very deep pocket. Definitely need to be a salary employee to get involved in that type of affair What is interesting and the reason I put this graph on the on the Table is I'm not using in this diagram and it is borrowed from I think Todd actually over in the quarter space He was one of his blogs so I'll give him credit What's interesting is if you look at a central bank digital currency, it is a depository receipt trust the custodian It is up on the left-hand side But actually it is a trust the custodian for the banks the commercial banks that use the central bank as A depository receipt of their land receipts or their other values stores the value They then return gain from the Bank of England a depository receipt for the Bank of England's commercial the Bank of England's deposits for you and I Actually that then becomes all those tokens become a payment token. I carry Tokens around in my pocket and we use those around so interestingly The two things I would bring to your attention on this diagram is first of all Different custodians are acting on different timelines So a commercial bank is very quick and very able to create depository receipts could do it tomorrow morning and does it in fact All of the time while the central banks are going to take a multiple decade to get into this situation But when they do that Their token will actually for the most majority of us not be seen as a depository receipt But actually be seen as a payment token and we will use it Between each other as a payment token. So it's fascinating to look at this graph from the other dimensions Specifically different actors are running at different timelines and different actors will see different tokens in different ways So hopefully what I just did there was was open up some thinking For the audience. I recognize that I'm preaching to the choir. Most of you have been over this token type stuff for many years Yeah So there's a reason I wanted to go in there. There's no kind of questions or as long as I've made sense and the crowd is resonating I will I will push forward on to the the purpose of actually bringing that that graph out The reason for that is because you're all well aware that we're seeing what we would call a disruption in the capital market space. One of the reasons we stepped out of RBS Was because we could see a disruption to the capital markets business. The creation of new digital currencies for the purposes of Payments be it ripple or Bitcoin cash or or stellar wasn't that interesting to us the creation of capital the ICO bubble was interesting and That showed some clear benefits Not that I need to go into those you'll have seen those many of you making business cases for Tokenization we're also now starting to see some really good analysis that shows how quickly we think tokenization will take take Traction and and to what scale and I think Push through that and you will now start to see what's going on over in the crypto space I will take you towards uniswap and others where the idea that we can have automated liquidity provision or more importantly the atomic and riskless DVP so One of the questions we've been put to me on the the talk and the context was around payment legs and the Snarly problem of Settlement and payments and actually one of the reasons that we came into this space Many of us joined this space is because payments are done Discreetly through a totally different Fabric or rail Than the actual goods and services that they're being paid for so it doesn't matter if you're settling in the capital markets business for trades Coming in on one side or whether you're in the real economy buying and selling goods wine cocoa doesn't matter The fact is is your payments will be separate legs even though they are actually two parts or two legs of the same atomic Transaction and the goal or vision that we all have is to be able to make Payments on the same fabric or the same rail as the goods and services that are going the other way And that to my mind is is really what you're now starting to see in the crypto space And that will start to appear over on the mainstream finance side Relatively quickly over in 2021 is the idea of atomic or riskless DVP and the idea of automated liquidity provision you don't you don't lock up three billion dollars worth of liquidity in Uniswap pools Without having solved somebody's problem and for my mind anybody that hasn't looked into that space should start looking into that space it is a extremely exciting part of the of the crypto puzzle That's on the on the tokenization side any questions around that There's a whole movement that claims that DeFi will Go towards C5 and where You know where where the twain shall meet and also where it might get taken over by the C5 space Some of these ideas, I mean, you know the The ideas behind things like Uniswap or Make a maker And others so so for us and our view on this is is relatively straightforward Finance is already decentralized you have a large number of banks one of the best decentralized networks we have is swift and that's operated exceptionally well Over the over the decades, so it's nothing new around decentralized finance DeFi as a movement is Bringing new thinking and new ideas to this space, but in many ways it's bringing old ideas and the irony for us Where in the Bitcoin and crypto space There's been a rapid rise of highly centralized exchanges Binance the Bitmex is and they have sought to build the same Finance market infrastructure highly centralized financial infrastructure. They're building that over in the crypto space. Well at the same time over in the Financial markets, we've just spent the last half a decade trying to use the same technology To dismantle and disintermediate our centralized financial markets infrastructure. So the irony that the technology is being centralized over in the decentralized space and it's Being decentralized in the centralized space. You've seen Hong Kong Singapore and Switzerland now Starting to adjust their regulation as they recognize that they may have over centralized Overcentralized their regulation and forced the creation of centralized financial market infrastructure and thus provided monopolistic or Key risks Single single key risks In there in their infrastructures What we have always pointed out is that these two Sides mainstream finance and crypto are converging You can see crypto and Kraken taking a banking license. You've just seen PayPal Start listing crypto We always use the last line of the the animal farm book The creatures looked from man to pig and pig demand and they could not see the difference It is only a matter of time between these two start converging and you will not notice the difference between the two The reason that we pick you to swap is you to swap is a really interesting way of Discovering price it is certainly novel and we haven't seen that Price discovery action for in the mainstream financial market space for a while And that is why it's interesting. There's also flawed because of course anyone can go into Uniswap and With that type of ML CTF or lack of ML and CFT You're not going to see in that space the creation of Large-scale financial institutions engaging What Uniswap has done is created a starting gun for the creation of financial grade Uniswaps I would suggest that So pushing forward into if there's I'll just push forward into the slides. I think Just give everyone a just just pushing forward into the into the The market trend that we've been focusing on over in lab 577 This is where digital asset said ledger comes to to part of the solution We obviously have learned a lot from cordite and we build on top of cordite We've watched and learned from many of the projects we've been involved in in the quarter space and other technologies And actually in the digital asset said ledger space We're very interested in the high potential of private institutional markets Where the public Markets both retail and institutional are well served after considerable investment over the past decades It's quite considerable investment for those trying to recreate or replat form those public retail and institutional markets That is not a high potential space for the market Where we do see high potential is in the private Securities the unlisted where we do see a liquid and therefore lack of price discovery Can't see the deal flow There were grotes Where in actual fact the cost of an IPO to become a public security Is a barrier to entry especially after the tsunami of regulation had that to the fact that the black magic of Securitisation which used to have a half million dollar price tag to it is now costing $50,000 to create an SPV and operate it and that quantum reduction in the cost of security Securitisation means we've gone from a very small number of issuers in a place like Switzerland 200s in Switzerland. So before there only used to be credits with UBS would do your securitisation now there are Hundreds of of issuers of securities in Switzerland who were able to create private securities in a matter of days With ice since they all look identical to a security issued out by one of the one of the big crowd There is always a push Towards the retail and that what that actually means is a reduction in the ticket size. So one of the Reasons that blockchain technology would just be led to is useful in this space And the reason that ticket sizes are kept large is because you only want to deal with the small number of Investors as you reduce the ticket size, you obviously Dramatically increase the number of investors and to do that you need to have a technology Which allows you to track the asset register and more importantly be able to pay out the coupons the dividends as you go through We're obviously pushing here at a vision, but the firms are plagued by having discrete data silos most private securities live and die Within the bounds of the institution that issued it credit Swiss the UBS JPM organs And one of the things we are keen to do is get outside of those silos and getting to a situation where we are able to issue Securities securitise and issue On alternative assets and make those mainstream in private space and you're we're not the only ones pushing on this space You can very much. Yeah, it's a market trend. I wanted to to share that with yourselves And make sure it Resonates is there any questions around this as a as an obvious market trend? No, okay, then I'll then I'll push on to to discuss it. She had ledger So from our perspective this asset ledger builds on the top of quality first and foremost, it's a two-year technology accelerator That companies are buying I'll go on to some of the some of the clients we've we've picked up they are Taking Dazzle as a white label technology that they can use Obviously it builds on the top of quarter and on top of quarter it provides Tokens assets a surface an API that you can use out of the box and it gives firms coming to the market build Could be a token platform Could be a settlement rail central bank digital currency Provides them a ready-made quarter solution that they can then use out of the box They can either host up themselves or we can run it for them and a lot of companies just keep coming to us to buy dazzle for their own purposes But when you buy dazzle you're also being onboarded to the public quarter network and in doing so you've then got a technology and you are becoming part of a Digital asset liquidity network that allows financial institutions and corporations We only really see legal entities. We don't see natural legal entities legal entities coming onto the public quarter network They are running that node and they were able to operate across that node with accounts with tokens very much the same style of functionality you see with wallets tokens over on the on the Seriums and public blockchain side. You're now getting to see that on a finance grade platform such as quarter Our target market has always been financial institutions where we're very much focused on buy surge and sell side firms obviously on the sell side firms dazzle is being used to offer assurance They're doing asset like digitization They want to build books do a primary issuance and get control over the asset registry They're obviously working with partners such as custodians who ultimately hold on to those tokens and provide the custodian solution and There's certain disruptions going on the market there and then on the other side the buy side Who are then taking mostly brokers in this case are taking dazzle to use it to hold those tokens on behalf of their clients and allow clients portfolios to own and have Alternative assets that have been issued out into the under the dazzle network and last but not least not there yet But we are expecting the secondary venues liquidity venues To come on to this network. We're already starting to see projects in the in the case of things like our checks sdx heading towards the quarter network and we're working closely with them Whether they they join the business network cooperation of dazzle is yet remains to be seen from our objective We're positioning ourselves very much at the heart of that public quarter network As the leading digital asset liquidity network financial institutions. There's got to be questions on this one Richard this is mani again Yes to your dazzle based upon the cordial token API I know the early days of cordite was having its own infrastructure for tokens So We've got obviously cordite predates token SDK We worked very closely with the R3 company to to make the token SDK and what we do with dazzle is make dazzle token SDK compliant The one reason for working with the R3 company was to make sure that we had a an interoperable solution for Tokens in the corner network and that's what token SDK is in the absolutely underneath the covers token SDK is inside dazzle We've got a number though that on the cordite side cordite was specifically targeted at crypto assets and the cordite token Capability actually allows you to do to wrap things like a theorem or ETH. Sorry not ETH Which has a higher level of precision token SDK doesn't have that but from our perspective in dazzle. We're agnostic to which Which ones you use absolutely where we pushed hard for that token SDK standard and therefore we're we're using that inside dazzle Good question. Thank you. I Go ahead Hi, this is Elizabeth Matthew of Securitize. Thank you for this For this discussion a question on dazzle. Is it can you think of it as a collider for corda? Essentially, what so is it is it corda as a service to a prospective Institution that wants to participate in a network or Is it green network? So I do want to just walk through that question again. It's want to make sure I got the question correct Just trying to understand So so I think of these marketplaces with you know digital assets and data as a Product a final product of different institutions deciding to participate in a network and providing You know assets and data and so does does dazzle is dazzle the network operator for such a marketplace or is it the The blockchain as a service tool to enable a participant to join the network the marketplace Yep, great question. So it's just a bit of delineation Obviously, we're operating on top of the public corda network and so the actual Network infrastructure the low-level network infrastructure is the public corda network On top of that, of course, you've got a protocol corda And that's operating as a base level using Horrid turn of operating system if you will but the quarter and dazzle then is operating as a Network business network on top of that that participants can join As legal entities they join the public corda network and then they run the quarter app called dazzle And that then gives them the ability to operate tokens on the corda network We do not see ourselves as the network We are building a liquidity network. We'd like to think of ourselves as the leading one What we do have and this is the confusion and I absolutely love the question What we are doing obviously is white labelling dazzle and selling that to others You'll have seen in the press that if no have broken cover on their partnership with us they're using dazzle underneath the covers and companies are very we're very comfortable with with With clients taking dazzle as a technology base and using it to build their own private network if they wish to away from the public corda network away from the dazzle network and Using the dazzle technology and to build it and the reason for that is because we know that over time This would drive interoperability Because at some point they will want to come back and want to interconnect And from our perspective from a lab 577 perspective, we're simply I could only use the term hedging our bets on the basis that We are building a Digital asset liquidity network which something like token eyes can join And token eyes can join and use it to issue tokens onto the public corda network You would do on the Ethereum network when you deploy a contract And you can come on to that network as a single entity or you can come to me and actually asked to White label dazzle and you can Build that into the bottom of token eyes and go and build your own proprietary platform your own network Your only private network and that very much depends on what jurisdiction you're operating in what clients you're trying to operate with And what type of business you're trying to build said no size fits all One size does not fit all and therefore we've come to market on both sides once as a white label technology technology accelerator and secondly as a network which you can join And you can operate dazzle as a node. Sorry, your legal entity can operate dazzle as a node and join in that network. Does that make sense? Did I answer that? Yeah, yeah, thank you. A quick question followed question You know when in the Ethereum you always have a like a you know in general blockchain You have a world state at any point of time. If I'm an issuer, I would know exactly who holds it on how much Corda being a private Privacy oriented network How do you bring that world state to the issuer? so the Interesting thing on dazzle is as you're up to point out quarter nodes are peer-to-peer. They don't have a global addressable space to work to and in actual fact The reason for that architectural decision was so that you could have privacy between the transactions Dazzle has underneath the covers One of the pieces of functionality that we built into dazzle is an asset register So the issuer of a token is able to track where the token is so each token as it moves As it is transferred from one node to the next one account to the next Across the network does actually call home. It's need to style home it to call home style functionality as we call it And so the asset register in real time is updated as the token transfers so unlike the bitcoins and theorems where you are simply updating the Pointer to who owns I the the private key the public key denotes who owns who is part of this asset register as a token is transferred from one node to another across the network In in the quarter network public order network So the issuer who is holding the asset register has a real-time updated View of the the data, but only the two parties the buyer and the seller and the asset register The issuer of the token have that knowledge. No one else in the network does So which means that if I transfer to money and money wants to Transfer to let's say Elizabeth That means that money is transferred to Elizabeth is now backed by this asset register because She really does not know whether I Whether I transferred to money and money is the actual owner of those tokens the only way to know that is to go back to the phone home to the asset register and then look at the account and Then of course she has to have her own account and then money will transfer Money will transfer money or assets to her Is that and the reason? That's correct. And so they the reason for doing that was because most jurisdictions There is a requirement for an asset registry And you need to know where those tokens are at any one point in time and therefore the issuer of those tokens The bid let's be a bond as a good example when a bond is issued the asset register or the issuer of that needs to retain that asset registry At all times and that's exactly why that functionality was built and there's another good reason for doing it And that's because when we come to pay the coupon or dividend depending on the instrument type We actually need to be able to deliver the payment of the coupon and we do that exactly the same way as we would do where the coupon is actually a cash token it has a settlement instruction Inside it and when you receive a cash token Actually what you're receiving is a promise we note from a paying agent or a bank Who has issued those cash tokens? Having received that coupon if you apply an iBan into it The payment can then be settled Usually off ledger. We don't usually tend to settle it on ledger What we do is it fires a payment instruction out from the back of that Issuer of that cash token and the settlement is made. So what I just did there was walk through the asset registry Which obviously follows the secondary trading and keeps track of where the tokens are owned and the jurisdiction requirement for that and then actually One of the reasons for keeping an asset registry is that you know who to pay coupons to and with the coupons What we talked through there was a basic cash Token which is effectively a promise we note which allows institutions to send cash tokens around the Network and at any point in time settle them back to the bank that issued them or the paying agent if that makes sense Yeah, definitely. I mean, you know, this is the problem of the cap table and being able to Look at the beneficial owners at any point in time And then of course taking action based on that for various purposes for paying dividends for paying coupons for Paying back the bond, you know as the bond as the bond matures all that stuff, but this means that the The issuer is a silent or maybe not even a silent partner in every bilateral transaction Is that right? So that is correct and actually fact if you brought onto the ledger An asset that was off ledger Let's say you're trying to You would use something like a custodian And what we're doing here is not changing many of the models business models that are out there If you wish to represent a share On the network, you're either doing that as an issuing firm And actually the asset register would be held by custodian and in many cases Deuptively you're required that the custodian with a custodian license owns that the issuance of those shares into the issuance of those funds instruments and and looks after that asset registry so there's a there's a number of actors in this space and Depending on who's issuing the tokens depends on what the token represents So custodians could walk into this space very easily and start representing tokenizing Assets that they hold and they're custodian On to the network and at any point in time holding an asset registry So that would be in my book a digital repository A digital report and a depository receipt so a GDR and ADR So is that a as a blistering now become centralized So it's that point you you're right in terms of the asset registry is owned and centralized in that issuing entity so either the issuing entity that issued the piece or the custodian that's then issuing onto the network is Running that asset registry and and absolutely from our perspective. We weren't changing We're not trying to change It into a descent decentralized asset registry What we are trying to do is use the decentralized ledger To keep track of the secondary trading and the secondary ownership of those and therefore making it much easier to track the asset registry So will the issuer also have other responsibilities for example if the transfer is to somebody who is not Was not KYC or AML or has some other Limits on ownership like you know, for example sometimes the cap cap tables have limits on ownership Of certain assets by a single entity so those kind of actions, are they part of the smart contracts themselves or are they actually done by active intervention by the issuer by the People who are in charge of the asset registry So in terms of the I Will answer the former the Fact that you have a JVM in there and that the Asset types are highly configurable and more importantly you can add Add the jazzle code base into your own cord app means that you can then build any more complex Product types or asset types as you wish to so we would obviously recommend That if that's the case that you wish to constrain the asset type in in whichever way you want that's exactly where the smart contract Capability comes into play. You're creating an asset type that has some limitations and the asset should Should itself Enforce those constraints so that Parties can't own a certain percentage or whatever the constraint is now how you do that in practice Is very much how you code that into the cord up Well, that's that mean for example in the example that I cited about that you know money is transferring to Elizabeth and I have You know I'm transferring something to money and he's transferring to Elizabeth now Elizabeth also has Assets coming in from other sources so their cap table Would only be visible if you can have access to the Total asset registry anyway, I don't want to go into the details of this because it's already 11 o'clock and We have spent a very interesting hour Talking about all this stuff and I think you know, we'll engage offline Through the capital market sig and I thank you Richard Not at all. So as I've been, thank you very much for your time. Thank you very much for the criticism to come on Say for some of you, this will be old. You've heard my voice before on a number of occasions for others This is the first time you've heard from me. I Have just walked through a rapid pace a huge level of material that we wouldn't normally ram into this this hour. It's just knowing the specialist group and the members of the specialist group I'm well aware that you you're pretty much up to speed on the top of the curve Therefore I could rattle through it in speed. We covered off cordite and the release of XTC I would absolutely Love to start a conversation with any of you around How XTC could help your firms? How cordite could help your firms and obviously from the point of view of dazzle Great to another many miles already pulling to you, but is it over the token I said if you're interested Very happy to have a conversation with you about how dazzle can help you from the quarter side We are we're very open and dazzle is there to serve so very open to conversations Definitely. Definitely will follow Thank you. No other no other questions. It sounds different Yes, yes, I'm on yeah, we are going to You know terminate the this meeting and we'll Talk later And you'll have the recording of this available and we can expand on this stuff Thank you. What's what's the best way to reach you? Is there an email or Yeah, richard rc at lab 577.io There we go Anyway, I can put you in touch with him Thanks, what I'll do is I'll share the I'll share the I'll share the pack I'll share the pack with the rest of the group and and we'll look forward to to chatting to you on the on the other side Sounds great. Thank you. Appreciate it Two minutes. Thanks very much. Thank you. Thanks. Thank you. Thank you