Introducing RIVA Markets

Unleashing the Potential of Blockchain and AI on the global Real Estate Finance and Private Debt Market

In today’s fast-paced digital age, the financial industry is on the brink of a monumental transformation. With the potential to bring a whopping $28.7 trillion value onto the blockchain, as highlighted by a recent EY report.

RIVA Markets is developing a novel capital market infrastructure and end-to-end platform leveraging the blockchain and AI with an initial focus on real estate finance, private debt, and fund management solution for the future of digital asset management.

RIVA Markets is more than just a platform; it’s a true game-changer for the financial industry paving the way to tokenised asset management.

Blockchain-powered Real Estate and Private Debt

At its core, RIVA Markets is an end-to-end solution to facilitate real estate and private debt investments in a new and fully digital way. From primary issuance and secondary market trading along the whole lifecycle of the asset. What truly sets it apart is its ability to originate loans natively on the blockchain. The entire process, from loan origination, securitisation to ABS/MBS and its tokenisation, primary and secondary market trading and even on-chain fund management, is being streamlined and digitised, ensuring unparalleled accessibility, transparency, efficiency and liquidity.

RIVA Markets is generally built blockchain-agnostic to secure future interoperability, but leverages the Provenance Blockchain, Purpose-built for the financial industry, Provenance Blockchain is a force to be reckoned with, with an ecosystem of 70+ active financial institutions, fintechs, and DeFi brands, and $15 Billion+ in supported transactions and more than $10 Billion of tokenised Real-World Assets (RWA). The most interesting part of Provenance is its specific implementation for the structuring and issuance of structured credit and its different tranches, as well as the on-chain collateral management and lifecycle management.

Additionally to the integration of Provenance Blockchain, RIVA Markets is working to integrate the ERC-3643 standard and the Tokeny Infrastructure to also integrate with other privacy focused EVM chains like Polygon or Avalanche subnets.

The combination of those implementations together with interoperability protocols like Axelar, is developed to build a future-proofed system responding to the long lifecycle of loans like in real estate financing.

The RIVA Markets Solution Modules:

RIVA Markets consists of 4 distinct but interconnected modules forming its innovative end-to-end solution:

• RIVA Prime — Loan Origination System: RIVA Prime Loan Origination System had been developed in a customisable way to deploy all types of credits, starting with commercial real estate finance and moving to private debt such as receivable/ payable finance, trade/ supply chain finance, SME loans and other loan types, either collateralised or uncollateralised. It also integrates a dataroom, an AI due diligence tool as well as Moody’s analytics integration for in-depth risk analytics and management. Loans can be structure in tranches and different options to be issued and listed on our RIVA Markets platform to match directly with investors terms. 3rd parties will be able to use our system in the future to directly originate loans on-chain, structure them in tranches and distribute to investors, without originating them on their balance sheet to relieve the risk capital requirements.
• RIVA Securities — Securitisation and Tokenisation Module: RIVA Securities enables the direct securitisation of different types of securities such as single loan tranches (Senior, Mezzanine, Junior) and whole loans as Single-Asset-Single-Borrower Securities (SASB), structuring of loan pools as ABS/ MSB (Asset-Backed Securities/ Mortgage-Backed Securities), CLO’s (Collateralised Loan Obligations), CDO’s (Collateralised Debt Obligations) and as fully composable securities. Those can be originated through our RIVA Prime LOS or 3rd party securitisation, bringing the loan data on-chain and manage the whole lifecycle. The issuance of a token, either non-fungible (NFT) or fungible, provides the provenance of ownership on-chain and to opportunity to trade them further seamlessly on the secondary market.
• RIVA Markets — Primary Issuance & Secondary Marketplace: RIVA Markets is the core module of our end-to-end system, a primary issuance and a secondary trading market matching those investments with investors terms, and facilitate the trades either as bilateral un-securities lending, as securitised investment or in token form. The platform offers well-structured insight into the asset with the data fully on-chain, tracking the whole lifecycle of the asset as well as Moody’s Analytics and Moody’s Rating, an integrated dataroom and AI due diligence report. It enables the investor to directly chat with our loan brokers on behalf of the borrower, negotiate the loan terms and generate and/ or upload the term sheets and legal documents for digital signing. The settlement of the investment/ trade can be executed through multiple settlements like escrow bank account, depository accounts through the ISIN or CUSIP or through stablecoins or tokenised deposits in the near future. RIVA Markets also includes a portfolio management component where investors can monitor and manage their assets, as well as re-list and trade on our secondary market.
• RIVA Capital — On-Chain Fund Management Platform: This future module will allow investors to directly set-up and manage funds on-chain and is integrated directly with RIVA Markets to invest into the assets listed and traded. The fund shares can be directly tokenised and also listed and traded on RIVA Markets. Therewith investors receive the opportunity to invest either fully concentrated in single loan tranches, diversified ABS, MBS, CLO, CDO pools or even more diversified through those funds. Service providers will be directly integrated and/or Smart Contracts automate fund related processes for reconciliation, fund accounting, NAV calculations, and subscriptions and redemptions.

Focussing on Efficiency from Issuance to Repayment

Efficiency in Issuance

The traditional loan origination to funding process is a long and tedious one, often stretching over several months. RIVA Markets challenges this status quo, compressing this timeline to a matter of days. By streamlining operations and integrating advanced technological solutions, we ensure that every stage, from origination to final funding, is executed with unmatched speed and precision, saving time and costs for the borrower and the investor, to reduce the idle time for borrowers and improve the capital deployment efficiency for investors.

AI-Powered Due Diligence Tools

In our pursuit of excellence and innovation, we’ve developed a cutting-edge AI technology to revolutionise the due diligence process. Our proprietary AI tool can instantly generate a comprehensive due diligence report, drastically cutting down the weeks traditionally needed for such tasks. The icing on the cake? These reports are fully customisable and multi-lingual, catering to a global clientele with diverse needs.

Secondary Market Efficiency — Revolutionised the Secondary Market for Securities Debt

The private and real estate debt market is a illiquid or in some instances a semi liquid (OTC) markets, where sellers have to accept often significant discounts, as those investments for buyers are very intransparent. By bringing those assets on-chain and track the payment, servicing and trading history on the blockchain, those assets become now fully transparent and easy to evaluate.

Securitisation make those assets easier to trade on a secondary market and tokenisation is about to create a whole new market, transforming them from a private to a public market and integrate even new forms of advanced liquidity.

Building Multi-Liquidity Sources

At RIVA Markets we’re working on establishing multiple primary and secondary market liquidity sources by making them better investable and accessible for investors, since many investors rather seek the security in yield generating assets with a transparent history. As well as forming global partnerships with institutions already active in tokenised asset management and other marketplaces to exchange assets and liquidity for an overall more liquid and better flourishing market where everybody is benefitting from. Additionally we’re aiming to integrate market makers in the space, as those assets also offer them new diversfied opportunites for their business model.

DeFi RWA Yield Pools

Another innovative solution is the merge of TradFi assets with the new world of DeFi. We’re already working on DeFi RWA yield pools with Automated Markets Makers (AMM) in the innovative principle as Decentralised Exchanges (DEX) exchanges are working. Thereby we create different risk-adjusted vaults like short-term bridge loans, mezzanine and senior loans, where investors can deposit stablecoins to generate yields from the underlying assets. This is a extremely promising new market as it provides investors in that space new opportunities to invest in diversified RWA assets, and at the same time provides ABS market a new source for primary and secondary liquidity.

With RIVA Markets we’re working on the future of asset management, and in particular debt capital, as this asset class is highly attractive for investors due to the constant cashflow and attractive risk-adjusted yields it provides. At the same time it is the most antiquated and cumbersome market, where especially the blockchain, but also AI, provides the perfect combination of technical solutions to create transparency, efficiency, accessibility and liquidity.

The Future of Digital Assets

According to a 2023 study by BCG, the financial world is poised for a digital makeover. The market is getting ready for the transition to tokenised asset management.

64% of professionals are interested in issuing securities on a blockchain.

60% see the potential in using tokenisation to enhance existing credit/lending products or even craft new offerings.

50% recognise the potential of tokenisation in generating liquidity for traditionally illiquid assets.

RIVA Markets stands at the forefront of this digital revolution, providing the perfect solution for those eager to transition into the realm of digital assets.

Join us as we usher in a new era in the world of finance, built on transparency, efficiency, and liquidity on the global real estate finance and private debt market.