Abacas™ is a world-first cloud-based exchange model enabling the trade of Digital Assets Backed by Custody (ABCs). Abacas™ operates in three parts:
• The Abacas™ Exchange (digital assets – ABCs)
• The Trust (fiduciary)
• The Custodian (physical assets, including commodities, bonds and equities)
Abacas™ operates as an exchange and provides a rich source of liquidity and enhanced services for Asset Managers – matching the ‘buying’ and ‘selling’ of ABCs while providing operational support to ensure seamless Straight Through Processing (STP).
The Trust and Custody components ring-fence and secure the use of the physical asset while the Abacas™ Exchange permits the direct trade and transfer of the digital assets (in the form of ABCs). The Trust provides instructions to the Abacas™ Exchange for all subscriptions and redemptions.
All incoming and outgoing digital assets are held in abeyance until the physical asset is cleared and confirmed by the Trust, in tandem with the Abacas™ Exchange. This clearing process provides additional security for the assets and mitigates operational risk.
It’s a highly secure, yet simple, process for the Asset Manager to port physical assets into the Abacas™ Exchange and commence trading using ABCs. Abacas™ has designed its processes to work in tandem with existing delivery and messaging mechanisms for asset transfer, eliminating the need for costly integrations. Once the asset has been validated by the Abacas™ Exchange, the ABCs are released for trading.