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As capital markets become increasingly global, traditional regulatory authorities can no longer control them. In response, regulatory authorities and banks are creating stricter regulations, making the buying and selling processes more cumbersome for market players.
Fintech innovation in and of itself cannot absorb the expanding transaction flows in a way that makes it easy for buyers and sellers to trade with confidence in the validity and liquidity of the assets.
Observers have recognized that a decentralized, bank-as-a-service (BaaS) business model can support collaboration between traditional financial institutions and fintech companies to provide the decentralized services needed for the current capital markets.
Meeting The Liquidity Challenge
The financial markets are not presently conducive to asset liquidity, the ability to buy or sell the asset quickly without a significant change in value. Increasing liquidity helps unlock the asset’s value.
Current liquidity challenges include:
1. The high number of asset owners complicates communication and undermines consensus.
2. The high dispersion of assets undermines the understanding of cash flow generated by assets.
3. The time to launch projects that deliver desirable liquidity is time consuming.
4. Entering the financial markets and attracting investments of private entities is difficult and expensive.
5. The process for tracking an asset’s life cycle and its cash flow is overly complex.
6. Legal and accounting expenditures are high for transferring assets for early investors looking to sell at peak profitability.
7. The withdrawal of assets is complex should the terms not be met.
The BANKEX Internet of Assets model provides fintech services without the need for brick-and-mortar institutions. Decentralization and smart contracts provide the trust that banks have historically provided. The model uses APIs and blockchain based processes to provide financial services.
The protocol delivers new business opportunities to asset owners, increases the purchaser’s investment portfolio, and supports transactions between the two groups, benefiting the creators of the tokenization technology.
The goal is to allow current market participants to interact more efficiently and more profitably.
The Internet Of Assets
BANKEX, a protocol that solves the issue of non-fungible asset liquidity, is creating what it calls Internet of Assets (IoA), based on BaaS principles, powered by artificial intelligence and Internet of Things (IoT) technologies.
The BANKEX protocol will enable a new generation of assets and contracts called decentralized capital markets using the proof-of-asset (PoA) protocol, in which a token representing the asset is ensured with an asset.
The BANKEX PoA protocol combines BaaS and blockchain technologies.
BANKEX tokenizes assets on the financial markets and converts them into money for a financial institution. A single pool of similar assets creates a marketplace where banks gain from liquidity and investors benefit from a transparent and predictable cash flow.
This technology also enables financial information to be delivered in real time directly into the blockchain, meeting the rising demand for facilitating liquid assets without facing the administrative procedures of traditional stock market compliance.
PoA will become the industry standard for creating decentralized capital markets.
The BANKEX protocol will be made available to fintech providers, AI and IoT labs, financial institutions and most importantly, asset holders.
Asset tokenization is a key aspect of the BankEx PoA protocol.
Tokenization of assets allows processes that would normally require a third party for verification. Tokenization contains asset description, validation, price calculation, cash flow calculation based on price, automated audit and execution. The tokens, accessible on the blockchain, serve as a gateway to the BANKEX platform.
The BANKEX PoA protocol provides proof that an asset and its cash flows are authentic.
The BANKEX tokenization process involves three entities: 1) the asset owner, 2) the asset purchaser, and 3) the company that creates the tokenization technology.
The platform includes an asset tokenization constructor that works in a sequence of smart contracts, tokenizing an asset with precision and transparency for all market participants, working in tandem with the PoA protocol.
Blockchain tokens can be bought and sold on a decentralized blockchain in less than 10 to 30 minutes, presenting an opportunity to tokenize any asset that currently takes longer than that to sell.
At the present time 10 banks and several leading technology providers, including Microsoft, support BANKEX.
BANKEX got commitments of $10 million during its private presale, while an additional $1.5 million was raised during the pre-ICO stage.
Token sale date is November 28th.