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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

1

An event triggers the rebalancing process. This could be a periodic review, a market condition change, or a manual action by the portfolio manager.

2

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.

3

A query is sent to SxT to identify the pre-defined characteristics of the rebalancing model.

4

SxT sends information about the rebalancing model to Yelay.

5

Yelay determines the respective buy/sell orders necessary to rebalance the account.

6

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.

7

Yelay simultaneously submits the trade orders to the blockchain using smart contracts.

8

The smart contracts execute the buy/sell orders.

9

W3.io confirms that the trades have been executed successfully, batches the trade details, and puts them on-chain.

10

W3.io sends notifications to the portfolio manager and the investor about the completed trades and any changes to the portfolio.