Ledgermatic is helping organizations find new sources of value by embracing the latest financial frontier: digital assets.
Global economies are still reeling from the toll of the pandemic, with worldwide debt hitting an all-time high. Enterprises and institutions everywhere are looking to protect themselves against economic unknowns — such as foreign currency fluctuations — limiting banking services and declining yields.
In response, Ledgermatic is helping organizations find new sources of value by embracing the latest financial frontier: digital assets. Built on IBM technology, our digital treasury management solution enables organizations to build, account for, transact and finance their operations using digital assets.
Choosing the right foundations
We developed our vision for Ledgermatic, a modular solution suite for treasury management using native digital asset infrastructure on blockchain technology. The key proposed elements were the following:
- An internal tokenization mechanism ‘LT2’, which replicates any corporate-backed asset or liability as an internal treasury stablecoin (where stablecoin is a digital token pegged to a single or basket of value either using the corresponding currency or using an algorithm).
- Digital Corporate Payments replicating in-house banking, virtual account management and payments-on-behalf-collections-on-behalf style models, all with customizable controls.
- Confidential Key Construction (CKC) – our proprietary split-key algorithm for institutional use cases.
- Multi-ledger accounting and reconciliation for onchain transactions.
- Enterprise Wallet Services with robust financial controls that embed user rights and privileges into any number of account types.
- Private Exchange, a Know Your Customer (KYC) compliant decentralized private money market for corporates to source liquidity and undertake private block trades.
We decided on an enterprise Software-as-a-Service (SaaS) delivery model so that our clients would not have to worry about infrastructure, support or scalability.
Next, our challenge was to build Ledgermatic. We kicked off an extensive market evaluation to find an infrastructure platform capable of delivering the security, performance and scalability required to support Ledgermatic. Anticipating a high level of demand, we wanted a vendor that could help us achieve short time-to-market and product maturity in record time. The scope of our vision made our choice of vendor pivotal to our success.
From vision to reality
Our assessment of the marketplace led us to confidential computing with IBM Cloud. IBM offers the best-of-breed in hardware-based cryptography to deliver an integrated confidential computing solution. Furthermore, the time and capital efficiency created by collaborating with IBM puts us on a different trajectory than other companies in the space, enabling cost and time savings that we can pass down to our clients.
Today, our proprietary split-key algorithm CKC runs on IBM Cloud Hyper Protect Virtual Servers, which isolates sensitive data in a protected enclave during processing. Using a hardware-based trusted execution environment within IBM Cloud Hyper Protect Virtual Servers, we secure data using embedded encryption keys that are accessible to authorized code only. Any attempts to access the keys through malware or other unauthorized code triggers a denial and cancels the computation, protecting data even when it’s in use.
We are also combining IBM Cloud Hyper Protect DBaaS with distributed ledger technology to provide a highly secure Database-as-a-Service platform to our clients. All metadata related to asset accounts, including external account identities, KYC / AML, Chart-of-Accounts, Journal Entries and Transaction Notes, is stored inside the DBaaS and encrypted at rest and in motion. The solution is SOC2, MiFID2, and ISO2700 standards-compliant.
Delivering tangible benefits
Through Ledgermatic, enterprises and institutions can benefit from an interoperable digital channel, asset portfolio and transaction corridor to boost their competitive edge. Our solutions help clients boost capital efficiency by driving more value from asset balances, access new channels to liquidity and better manage cash flows and risk from customer-held credit.
Supported by IBM technology, Ledgermatic offers enterprises and institutions the lowest-cost global payment routes and seamless interoperability for fiat and digital assets. We help organizations shrink their working capital cycles and diversify their financing and liquidity needs by providing access to digital assets alongside traditional markets.
IBM technology gives us an unrivalled head-start in meeting bleeding-edge information security requirements and creating turnkey, compliant infrastructure. By taking advantage of IBM innovations in the Confidential Computing space, we’re bringing Ledgermatic to life fast. Consequently, we can start helping organizations enter an exciting new era of internet-driven commerce by moving corporate assets, flows and financing onchain.