RISE Financial Technologies: Accelerating Post-Trade Processing via Distributed Ledger Technology

Thorsten Peisl, Chief Executive
The advent of Blockchain technology has immense potential to transform the way financial institutions interact and how transactions are processed. However, practical application of the technology has been sluggish due to insufficient understanding of the financial securities industry and the sensible possibilities of distributed ledger technology (DLT). The need is for practical enterprise solutions that integrate with existing infrastructure and comply with regulations. All of this while providing immediate benefits to the market and realistic ROI targets.

Built from the ground up by a group of highly experienced post-trade industry experts, UK/US-based RISE is focused on implementing two solution sets. First, RISE Distributed Depository which is a B2B distributed infrastructures for more efficient processing of traditional, transferrable asset classes. Second, RISE Crypto Custody which helps the same client base to compliantly integrate cryptographically protected, emerging asset classes into existing investment portfolios.

“We work closely with regulated financial entities to help them realize the benefits of DLT to improve and streamline services as well as build business models that aid top-line growth,” says Thorsten Peisl, chief executive of RISE.

The Depository product is operated and fully integrated into the market, helping to reduce cost, address risks, increase control, and introduce new post-trade services for existing regulated asset classes. At the core of RISE’s innovative solution are smart ledgers; they understand post-trade workflows required for market-compliant processing across multiple jurisdictions. These smart ledgers are combined with best-of-breed open-source components and backed by a set of cryptographic features that deliver the crucial confidentiality at the necessary scale required for capital markets. At the same time, they deliver transparency as needed by regulators, investors, and issuers globally.

The Crypto Custody solution is equally operated by market participants;it enables integration of digital assets into existing portfolios serviced by regulated providers in a compliant manner.

Capital and crypto markets converge. There is a clear trend, bearing tremendous opportunity for those embracing change with specialists such as RISE

On one end, it replicates existing industry standards and protocols of RISE’s clients; on the other, it interfaces with the fast-evolving diversity of distributed market infrastructures and their new digital assets. Crypto Custody proves beneficial in establishing a direct link to distributed market infrastructures that are otherwise largely incompatible with regulated legacy environments.

Already in 2016, the largest global processing network and eight leading financial services organizations have successfully tested RISE’s Depository capability and validated data flows, integration points, settlement (finality), and non-financial benefits. In 2017, cost savings of 24-46 percent on transaction settlement for the world’s most efficient asset classes alone have been verified by 28 institutional funds. Today, RISE is setting up post-trade processing networks for depositary receipts, real estate, and collective fund asset classes in collaboration with incumbent market players and through an engagement framework that has been established over two years with an internationally leading law firm. As part of the current execution of the depositary receipt project with sponsors across the UK and US, RISE has defined a governance framework for DLT-based solutions suitable for capital markets and with the potential to embrace the social-economic trend often referred to as the tokenization economy.

The future holds bright prospects for RISE. While bringing solutions to market with the right partners, the company actively works on growing their existing post-trade processing networks for depository receipts andreal estate while gathering momentum with market participants around Crypto Custody.

RISE Financial Technologies

London, England

Thorsten Peisl, Chief Executive

Develops B2B capital markets-integrated distributed infrastructure to help regulated financial institutions reduce cost, address risks, increase control, and introduce new services around post-trade processing of securities

RISE Financial Technologies