Development of a DLT-based platform for crypto fund units
fundsonchain
Initial situation
- Support of the client fundsonchain in cooperation with our strategic partner adesso in developing a DLT-based platform for the settlement of electronic fund units and crypto fund units
- The goal is to find a suitable DLT framework for the implementation of the use case, taking into account architectural options (permissioned vs. public blockchain)
- Build an architecture for on-chain and off-chain data, taking into account compliance and regulatory requirements
- Functional design of a wallet infrastructure
Approach
- Comprehensive analysis of DLT frameworks taking into account performance and scalability (e.g., data throughput, number of nodes), governance structure (consensus mechanisms), IT security, data protection, and cost
- Selection of transaction-relevant data sets to differentiate on-chain vs. off-chain data
- Consideration of relevant factors from the Electronic Securities Act (eWpG) the Regulation on Crypto Fund Units (KryptoFAV) and the Regulation on Requirements for Electronic Securities Registries (eWpRV)
- Consideration of relevant factors from the Compliant Architecture For Security Tokens (CAST) framework (e.g., business continuity and data protection)
Results
- Selection of Hyperledger Fabric and Hyperledger Besu as DLT frameworks to ensure both public and permissioned blockchain infrastructure
- Successful implementation of the DLT-based registry, taking into account the identified transaction-relevant data
- Successful implementation of eWpG, KryptoFAV and eWpRV requirements
- Successful implementation of a business continuity plan (redundancy mechanism) to be able to switch technical infrastructure in case of severe technical problems or other externalities