Use Case : Structured Products

STACS Blockchain is looking to increase internal efficiencies between departments involved in a structured products transaction and uses smart contracts to automate asset servicing aspects.


Instant transaction notifications for stakeholders

Clear audit trail for the credit and risk teams.
Regulators can be granted access to Native STACS too.

Reduce reconciliation across departments. Reduced manpower and cost expensed on mapping data.

Accurate data recordkeeping on the blockchain, which serves as a single source of truth

High availability and no single point of failure for database management

How DLT Benefits Structured Products In Markets

Streamline and automation of operational processes between the markets, clients, operations, credit and risk teams

Mandatory events and distributions can be managed via smart contracts embedded within the securities, for example, automation of Knock-In Knock-Out (KIKO) triggers and pay-outs

Complex events can be structured as simple Delivery Versus Payment (DVP) transactions between issuers and investors

Greater efficiencies between clearing, settlement, reconciliation and reporting amongst the issuer, distributor, counterparty and clients

Potential secondary trading of structured products

The Ability To Construct Bespoke Instruments With DLT

Based on new approaches to financial engineering and unbundled securities

These instruments could consist of individual cash flows which will meet precise needs in terms of timing and credit risk

These instruments could be financed by issuers selling their own instruments that match the cash flows they expect to achieve, which means creating swaps without the need for balance sheet intermediation

Learn More About Our Work