We offer a fully compliant stablecoin and blockchain GIC solution for banks, including in regard of Securities laws, FINTRAC AML requirements and banking laws.
The stablecoin is designed to evidence a bank deposit. Anyone holding the stablecoin may redeem the deposit directly from the bank. It's as easy as GIC!
Canadian banks are strictly regulated by OSFI, a federal regulator. Proven strong and stable, no Canadian bank failed during the 2008 financial crisis.
A stablecoin is a cryptocurrency pegged to a stable asset, such as a dollar. Our stablecoin is fiat-backed, meaning that for each stablecoin in circulation, a corresponding USD or CAD is in deposit at a bank.
Blockchain applications, or smart contracts, cannot interact directly with a bank account. Therefore, they need a stablecoin to be able to exchange value between themselves and with end users. Unfortunately, despite a huge demand, stablecoins currently on the market are either unstable, untrustworthy or even illegal.
A legal and trustable stablecoin, if it existed, could unlock the potential of the blockchain and help making it mainstream by allowing safe payments for all sorts of usage and across industries. That is the promise of our bank-issued stablecoin.
We are designing a user-friendly web platform allowing users to deposit and redeem stablecoins and blockchain GICs with the bank. All interactions between users and the bank happen through this platform.
Canadian users log on the platform and provide KYC information in compliance with FINTRAC Anti-Money Laundering (AML) requirements. Once identity verification is completed, users electronically sign a deposit or GIC contract with the bank.
The platform handles money movements between the user and the bank through a rule h1 compliant pre-authorized debit agreement.
In other words, there is no need to develop or integrate software within the bank IT ecosystem.
We have drafted secure and ERC20 compliant smart contracts allowing the deployment of a bank-issued stablecoin on the ethereum blockchain. We are also working on supporting other blockchains such as Stellar and J.P.Morgan Quorum. The smart contracts we have designed allow the issuance of coins of multiple currencies such as USD and CAD.
The stablecoin can be transferred between users at will, empowering businesses and industries around the world to transfer value between users and applications on the blockchain. Any users who have complied with the bank KYC and AML requirements can redeem the coins directly at the bank through our web platform.
Having issued the first bank backed stablecoin as a foundation, the bank has the option to offer fix-rate tradable Guaranteed Investment Certificates (GIC) on the blockchain.
We have drafted smart contracts allowing to issue and redeem interest paying GICs. What's unique about them is that they can be traded between users on the blockchain without the bank intervention, effectively allowing a decentralized secondary market.
The bank has full control of the interests offered at issuance. Once issued, the smart contracts we designed handle transfers, interest payments and redemptions of the GICs.
Ako Technologies designs the platform, the smarts contracts for the stablecon and GIC issuance on the blockchain, but also handles all the related administration. Administratively speaking, our partner bank only has to open an account to receive deposits. Everything else is handled by us as agent of the bank.
Ako Technologies is also acting as the agent of our partner bank for AML clients' identities verifications, in full compliance with FINTRAC requirements.
What we offer is a full turnkey solution!