Blockchain & Digital Assets

Access to the real estate market is particularly unattractive for small investors. This is where tokenization comes to the fore. By mapping via a "smart contract" on a blockchain, costs can be reduced and small-scale investments in individual properties are made possible.

d-fine supported a start-up in the design and implementation of a tokenization platform for real estate. In particular, the connection of the blockchain, the implementation of the smart contract as well as the tools for generating the tokens were executed by d-fine based on an inhouse-developed tokenization infrastructure. The focus was on both a user-friendly interface and a high level of security for the processes.

In addition, d-fine provided support with several workshops on the connection and use of the developed components, as well as advice on standards and technological aspects, such as the selection of the blockchain.

In capital-intensive industries, such as the automotive industry, the ratio of fixed to variable costs is very high and requires a large production volume for appropriate return on investment. This is accompanied by a high degree of sensitivity towards the economic cycle.

One possible mitigation is the transformation of fixed costs into variable costs through the application of usage-based billing models ("pay-per-use") for often very expensive production machines. The resulting reduction in tied-up capital creates new potential for investment.

For this, d-fine supported a start-up in the development of a platform for usage-based billing of production machines based on a Corda Distributed Ledger. Through the combination of smart contracts, which were connected to production machines, and the existing payment infrastructure (SEPA Instant Payment), it was possible to realize automated and usage-based euro payments.

Together with the start-up, a bank and an insurance company, d-fine coordinated various use cases and finally implemented them in the form of a pilot. Part of the implementation was the realization of the Corda network, middleware and various frontends and APIs.

Secure custody of crypto assets, which include cryptocurrencies such as Bitcoin or Ether, is an essential part of the emerging digital asset infrastructure. The secure storage and use of cryptographic private keys play a central role in this. Access to these private keys makes it possible to sign blockchain transactions that transfer these assets. The loss or theft of the private keys can, in the worst case, lead to the irretrievable loss of the digital assets in custody.

As part of a preliminary study, d-fine worked closely with the customer to design a target operating model for "cold storage", i.e. a highly secure storage solution in which the private keys are stored in a so-called "air-gapped" system. This system is permanently separated from the Internet and secured against access – physically as well as by strict processes. The focus of the design phase was on the "crypto-specific" business processes and IT architecture, based on which a Minimum Viable Product was implemented by d-fine.

Distributed Ledger Technology (DLT) enables paperless and secure issuance of securities and thus more efficient access to capital markets. Together with the client, d-fine digitized the processes in the primary market from paperless contract creation to pricing using a DLT architecture based on Hyperledger Fabric. The platform developed in the process covers the issuance of promissory bills, bonds and syndicated loans and has been in productive use since 2018. The platform was integrated into the bank's payment and back-office processes.

The prevention of money laundering and terrorist financing is a central component of financial regulation and must be ensured by the group of obligated parties, which also includes crypto custodians.

Together with the client, d-fine developed a regulatory framework for its crypto custodian that combined established AML/CTF approaches with aspects of the crypto-assets world. After completion of the conceptual phase and a prototype implementation, d-fine supported the client in the selection of suitable chain forensics service providers and the application of a productive AML/CTF compliance solution.