FAQ
Who Are The Team Behind GATENet?
What are Digital Securities?
Much like traditional securities (such as, stocks, derivatives, bonds) ‘Digital Securities’ or ‘Tokenised Securities’ are digitally native tokens that hold all the same attributes as their traditional counterparts. These tokens are distributed via blockchain technology, which eliminates many of the current infrastructure costs and inefficiencies.
The original concept of a paper certificate of ownership for a stock or bond, now produced digitally but with the same limitations and burdens, digital (token based) securities are an evolved representation of your ownership and associated rights (such are dividends).
Are Digital Securities Legal/Compliant?
Why Digital Securities?
A core difference between traditional securities and digital securities is that the latter exists within a fully-funded environment, immutably on the blockchain. Securities that are traded can be subject to significant risks, such as failed-trades and more systemic issues that cause widespread disruption and cost to issuers, investors and market participants.
The current legacy Market Infrastructure (FMI) operates with numerous intermediaries; exchanges, broker-dealers, clearing houses, custody providers all of which add cost, barriers to entry in an already outdated T+2 model. Digital securities are stored on a distributed ledger (blockchain) as tokens and exist entirely in digital form, meaning via smart-contracts and enhanced automation we can remove these barriers to entry, and significantly reduce costs across the board for global finance.
The GATENet infrastructure aims to transform the current system using digital securities and blockchain technology. Now is the time for the next evolutionary step in the creation of a truly Digital Financial Market Infrastructure (Digital FMI),
Why Now?
How is GATENet Different?
Is GATENet a Blockchain?
What Blockchains does GATENet use?
What is a Digital Financial Market Infrastructure (Digital FMI?)
Today’s Financial Market Infrastructure (FMI) is the current system for the clearing and settlement of securities. When securities, such as a share/equity is traded there needs to be a transfer of ownership and a movement of fiat currency for the trade, this is done by a host of intermediaries, such as broker-dealers, Central Counterparty Clearing Houses (CCPs), custodians and banks - after the trade is initiated, taking up to 2 days, which is called ‘T+2’
Our solution is the Digital FMI, an innovative T-Instant model for the capital markets. In our phased approach, our technology roll-out is designed to mimic the current model of settlement, but in a fully-funded environment, with the enhancements of a T-Instant post-trade settlement, supported by blockchain. Eventually we will move toward a completely unified system that operates harmoniously with the register of members (ROM) and settlement happening simultaneously at the point of trade. No more systemic risk, failed trades and cumbersome costs.
In short, with GATENet when you trade, you settle.