BankEx: An open source PROOF-OF-ASSET protocol to facilitate digitization, tokenization and exchange of traditional assets
AmaZix has been working with BANKEX since the start of October and they quickly grew in popularity to become our largest Telegram group with over 4,000 members. Let take a deep dive into what they’re working on.
BankEx and the Proof-of-Asset (PoA) protocol
Their blockchain approach on the “decentralised Bank-as-a-Service (BaaS)” exchange system makes them specialists in the tokenisation of non-liquid banking assets — in essence, using advanced financial technology to enable the trade of fungible derivatives without moving them out of bank security perimeters.
For perspective, it may help to draw parallels to how Brent futures work for the oil market.
The PoA protocol embodies BankEx’s core product, aiming to solve the recurrent problem of non-fungible asset liquidity. In this concept, tokens are released as part of the protocol when ensured with a “smart asset”, tradeable globally, and potentially shaping a new generation of decentralised capital markets.
In so many words: BankEx accepts a client’s asset — primarily located on financial markets — and tokenises it, without waiting for the portfolio to accumulate critical mass. The BankEx PoA protocol ensures that the asset is real and that its cash flows are authentic.
What this does is form a pool of similar assets (say, for example, a pool of banks), thereby creating a marketplace where banks benefit from liquidity and investors benefit from a predictable and transparent cash flow.
Use Cases
What will make the BankEx solution so easily accessible and adoptable is that it is completely open sourced. The PoA protocol is available for third party financial tech providers, artificial intelligence and Internet-of-Things labs, traditional financial institutions and asset owners: all participants of financial markets.
It already has working products, including decentralised Know Your Client (KYC) functions, crowdfunding of rejected loan applications and cash flow securitisation.
Because BankEx’s mission is to solve under-utilisation of real-world assets, which leads to client attrition due to underserving, it already has real world business cases in several industries, such as:
- real estate: creating secondary markets for new buildings;
- venture capital portfolio: tokenisation to cut down settlement time, legal and administrative expenses and liquid markets for private shares.
- non-profits: processing direct donations for transparent process of providing clean and safe drinking water in India and Africa; and
- transport: tokenising underused cars for car sharing.
The BankEx story so far
In 2015, the BankEx Fintech Lab was created and began daily operations in mid-2016. Over the course of that year, the lab signed contracts with three banks and deployed three fintech products, shortly before signing a blockchain tech development partnership with Microsoft in February 2017, through a Microsoft Azure sponsorship worth $120,000.
After successfully launching the Ethereum-based PBKX tokens in July, BankEx opened for business in New York two months later, releasing the Demo-version of its Proof-of-Asset Protocol in October 2017.
In November, Ethereum co-founder Vitalik Buterin acknowledged BankEx’s implementation of the “Plasma Protocol”, a newly-proposed universal extension of Turing-complete blockchains, allowing the creation of “daughter” blockchains governed by higher-level ones, with their own consensus rules, functionality and underlying base token.
BankEx has successfully partnered with over 10 banks and several multinational companies including Moscow exchange, Microsoft, and IBM. They are currently preparing to make SEC-compliant Initial Coin Offering of BankEx cryptocurrency in Singapore jurisdiction.
By mid-2018, it aims to have the first asset-backed BankEx exchange, with the creation of a full-fledged financial bridge between cryptocurrency and traditional money.
BankEx’s token (BKX) pre-sale raised 40,000 ETH (approximately $1.6 million) in funding — double of its soft cap target. The main sale recently launched on 28 November, 2017, raising more than $25 million in contributions within the first three hours. Keen to become part of the new horizon for the banking industry?
Join the BKX Token Sale now, or read their whitepaper for more technical details.
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