Hong Kong, November 22, 2019 - FinTech innovator GoldYak today announced the execution of the world's first blockchain-enabled digital platform with RegTech deployment (US patent pending) on wealth management products and services.
Conceptualised, created and then fully developed over two years by local Hong Kong FinTech start-up GoldYak, the GoldYak platform is expected to bring to today’s financial market the next-generation digital security across a range of financial transactions. While at the same time, the GoldYak platform will reduce the resources required of its future users in relation to ever-tightening regulatory compliance.
A Proof of Concept (POC) based on actual trade flow for purchasing unlisted financial structured products has been conducted on the platform by two international financial institutions, one as buy-side and the other as issuer.
With the deployment of immutable blockchain technology on transaction records, as well as the decentralized and therefore unrivalled data protection with the benefit of optimized auditability enabled by a Distributed Ledger Technology (DLT) application, the platform proves its superiority during early trials.
Concerning that data within the ordinary DLT environment in blockchain application is sometimes considered to be excessively transparent and open, the disclosure of sensitive financial information is perceived as the major disadvantage and hindrance for banks to adopt such an application.
In view of this concern, says Sam Ng, Chief Technology Officer of GoldYak: "With the uniqueness of GoldYak data privacy protection mechanism, only relevant parties can access the immutable records in this DLT network. The GoldYak platform distinguishes itself from other competitors and delivers the best of both worlds: in data protection, transparency and privacy issues for banking industry as well as to revolutionize the new DLT concept in the Fintech 2.0 arena."
Meanwhile, regulatory compliance in the banking industry is one of the major hurdles for the implementation of true Straight-through processing (STP). Ng notes, "By utilizing the features of blockchain as a notary service [to authenticate the regulatory compliance as part of the STP from our GoldYak platform], this really streamlines the workflow to the next-generation Banking 2.0 in the FinTech area.""
In addition, considering the highly regulated nature of financial institutions, the existing banking system and workflow can compromise the development of FinTech 2.0, or the next stage of digital structural change in the banking industry.
"However, with GoldYak's latest technological deployment of Software as a Service (SaaS), blockchain, cloud technologies and micro-services, it is close to a turn-key solution for a service provider to transform financial services to integrate the GoldYak platform into its own business operation," adds Ng.
The recently completed POC represents a significant step for GoldYak to establish itself in the unlisted structured financial products market, which is estimated to be worth US$100 billion.