Multi-party Asset Rebalancing
This recipe allows Portfolio managers to automatically rebalance RWA’s according to predetermined formulas.
Partners
Trident3: Manages identity requirement verification between platforms.
Space and Time: Portfolio Model Storage and Performance Analytics.
Yelay: Multi-chain Order Management and Trade Execution.
Innerworks: Transaction Validation and Portfolio Reconciliation.
Privado ID: Regulatory Compliance and Identity Management.
Example Use Case JP Morgan’s portfolio managers enable their customers to automatically rebalance RWA’s based off predetermined models.
Benefits
Multi-layer verification and validation across all participating entities ensures secure cross-party transactions
Real-time compliance checks and identity verification across multiple parties and jurisdictions
Streamlined multi-party settlement process reduces operational overhead and settlement time
Every step of the multi-party process is recorded on-chain with cryptographic proofs
Easily add new parties and assets while maintaining security and performance
Sequence
An event triggers the rebalancing process. This could be a periodic review, a market condition change, or a manual action by the portfolio manager.
Identity Recipe - A version of the previously outlined Identity Recipe is used to re-verify the user's identity to ensure ongoing compliance with regulatory requirements. A successful result is batched, put on-chain, and a trigger for the rebalancing to continue is initiated.
A query is sent to SxT to identify the pre-defined characteristics of the rebalancing model.
SxT sends information about the rebalancing model to Yelay.
Yelay determines the respective buy/sell orders necessary to rebalance the account.
Yelay creates the trade orders specifying the assets to be bought or sold, the quantities, and the target prices, this information is then sent to SxT.
Yelay simultaneously submits the trade orders to the blockchain using smart contracts.
The smart contracts execute the buy/sell orders.
W3.io confirms that the trades have been executed successfully, batches the trade details, and puts them on-chain.
W3.io sends notifications to the portfolio manager and the investor about the completed trades and any changes to the portfolio.