What does a Smart Token Chain (STC) do?
- Standardizes financial information exchange through a proprietary method of data gathering, compression, encryption and delivery of financial assets.
- Securely communicates messages between closed loop network participants in real-time.
- Integrates identity for delivery over global payment systems, thereby combining pertinent sender and recipient data like personal, banking, and transaction information.
- Bridges closed financial systems, allowing for immediate, fully encrypted financial data delivery; currently in use for global money movement.
Creates unique encrypted financial information files. - Verifies all data encrypted in a STC for the respective counterparty.
Fully compliant with SWIFT and ISO settlement standards.
What are the benefits of STCs in Payment, Trading and Clearing Systems?
- Decrease clearing costs, better margins
- Greater efficiency
- Front and Middle-Office functions more closely merged at time of transaction
- Back office payment process virtually eliminated
- Lower capital requirements
- Built-in compliance modules
- Compatible with global network protocols
- No distributed verification delay
How do STCs Work in Netting and Settlement Protocols?
STCs carry a large amount of data and can be wrapped within even larger “Master” STCs:
- Individual transaction data can be tagged within larger data files all the way through netting and settlement.
- Assets classes settled via legacy systems benefit from the use of STCs as larger amounts of data can accompany a transaction and be easily encased and encrypted within the STC.
Transactions that fall outside of standard settlement systems can also utilize STC technology as the tokenization protocol to facilitate transactions on current or future financial platforms, within distributed payments platforms, and/or for immediate settlement, virtually eliminating margin requirements and counterparty risk. In essence, the combination of a platform that allows for immediate settlement with STCs can in time usurp the need for larger netting systems.
Why use STCs? / What are the efficiencies of STCs?
- Standardization of data across users.
- Immediate access to data in a single file for transaction amendment, settlement, regulatory and trade unwind.
- Depending upon asset class, ability to become a “tradeable asset” in itself (i.e. digital asset).
What are the Security Features of STCs?
- Proprietary method of encryption securely transfers any electronic value.
- PKI Infrastructure including three algorithms as the STC asymmetric encryption scheme AE = (K, E, D).
- The randomized key generation algorithm K (takes no inputs) returns a pair of keys, the public key and matching secret key (pk,sk), respectively.
- The encryption algorithm E takes the public key pk and a message M (a.k.a. “plaintext”) to return a value called the ciphertext.
- The deterministic decryption algorithm D takes the secret key sk and a ciphertext to return a message M.
- Follows best practice payments industry standards:
- 256 bit encryption
- Direct partner VPN communication
- Two factor authentication
How do STCs Aid Compliance?
- Multi-source identity verification with proprietary algorithms.
- Top tier compliance authentication: KYC, AML, OFAC, BSA, et al.
- Active partner KYC processes.