Settlement Optionality | The Future of Clearing & Settlement
CURRENT CHALLENGES
Today, the clearing and settlement process is an inefficient risk-based cost center for many financial institutions. Current settlement architectures do not sufficiently reduce settlements risks or enable income to be earned by the buy and sell-side institution on the notional value of the settled transaction. Klearnet™ aims to solve these challenges by merging AI and DLT, transforming clearing and settlement processes into a highly efficient lower-risk profit center.
THE FUTURE OF CLEARING & SETTLEMENT
Klearnet™ is developing a patented next-generation clearing and settlement software powered by DLT and AI, transforming clearing and settlement processes for digital assets, currencies, securities and commodities. Understanding the limitations of many centralized and decentralized systems, our patented and patent pending architectures provide financial institutions with greater transactional efficiencies, lower settlement risks and increased monetization with settlement optionality. With Klearnet™, clearing and settlement risks may be reduced with a “trade date plus zero” model and may be simultaneously and continuously monetized with our patent-pending “trade date plus infinity” model*, creating unprecedented revenue generating opportunities for financial institutions.
* The term “infinity” should not be interpreted literally, and is merely used herein to describe a settlement cycle without a specified settlement time or date.
A settlement architecture powered by AI and DLT, reducing risks and uniquely monetizing settlement with optionality.
Digital Assets
Digital assets may used by to support collateral management and manage risk, streamlining settlement processes.
Intelligent Net Delta Clearing
Net delta clearing is powered by DLT and AI, optimizing batch transaction settlement, creating efficiencies and increasing monetization of interest.
Time-indefinite Settlement
Settlement is optimized utilizing our patent pending architecture, enabling time-indefinite settlement cycles and monetization of the settlement process.
Trade Compression
T+0, settlement and exchange of financial asset and payment occurs in real-time between buy and sell-side upon execution of trade.
Trade Expansion
T+∞, settlement and exchange of financial asset and payment is atomic while allowing continuous monetization of interest.
Compensatory Settlement
Interest may be earned on the notional value of the transaction by both the buy-side and sell-side financial institution.
Digital Assets
Securities
Commodities
Currencies
Settlement Optionality
The Klearnet™ settlement system is being developed to exploit atomic settlement and time-indefinite settlement. Through our proprietary AI-powered distributed ledger technologies, Klearnet™ continuously and simultaneously monetizes settlement and reduces risks.
Reducing settlement risks.
Monetizing settlement cycles.
HOW IT WORKS
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EXECUTION
The transaction whereby the seller agrees to sell and the buyer agrees to buy a financial instrument (currency, security, commodity or digital asset) in a legally enforceable transaction through each of the trading party's financial institutions.
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CLEARING
The process of novating accounts of the trading parties and arranging for the transfer of money and financial instruments between the trading parties and clearing agency. Upon transfer, clearing agency acts as the counterparty to the trading parties.
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ATOMIC SETTLEMENT (Phase 1)
The transfer of ownership and title to the money and financial instruments between the trading parties and clearing agency. Earning of interest commences.
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TIME-INDEFINITE SETTLEMENT (Phase 2)
The Klearnet settlement software enables the clearing agency to pay interest to the buy and sell-side trading parties on the notional value of the transaction.
Klearnet™ is powered by two patents
Klearnet™ is powered by two patents, a layer one DLT architecture, Qeros™, and our settlement architecture. Our DLT architecture, Qeros™, is being designed to provide scalability and throughput limited only by upper bound hardware and bandwidth constraints for all settlement transactions while providing maximum transaction security. Our settlement architecture aims to reduce settlement risks, increase efficiencies and create settlement optionality with time-indefinite settlement (T+∞).
L1 DLT ARCHITECTURE
Multi-Parallel Processing of N-Dimensional Orthogonal Splits in Transactions and Data for a Distributed Transaction System
SETTLEMENT ARCHITECTURE
Distributed Transaction System for Atomic and Time-Indefinite Operations
Klearnet™ will be powered by Qeros™ our patented and proprietary layer one architecture. Qeros™ is being purposely built for use cases requiring maximum scalability, throughput and security. Financial institutions and FinTech firms will be able to license Qeros™ for any FinTech use case.
Continuous monetization of clearing and settlement, shaping the future growth of the global financial marketplace.
BENEFITS
Atomic Settlement
Settlement may be atomic, allowing financials to settle transactions simultaneously with the execution of any transaction.
Settlement Optimization
Optimizing transaction settlement on a gross or net delta basis, resulting in fewer settlements and substantial cost savings.
Ledger-Based Settlement
Sophisticated ledger-based settlements, enabling risk reduction and monetization of the settlement process.
Streamlined Processing
Trustless and exercisable time-indefinite settlements, resulting in significant cost reductions and effort required to clear transactions.
Risk Mitigation
Smart-contract based risk management technologies, reducing counterparty exposure and promoting clearing and settlement safety.
Compensatory Custody
Qualified financial institutions may share prorata in the revenues generated by time-indefinite settlement.*
* Ecosystem fee pool represents a portion of the revenues of Klearnet™ and is subject to change at the discretion of Klearnet™.
Reducing settlement risks and creating unprecedented opportunities for revenue generation.
TARGET MARKET
Banks | Financial Institutions
Cryptocurrency Exchanges
Stock | Futures Exchanges
Klearnet Financial, Inc.
108 Wild Basin Road South
Suite 250
Austin, TX 78746
Fax: +1 512 697 0046
108 Wild Basin Road South
Suite 250
Austin, TX 78746
Fax: +1 512 697 0046