Developing a primary and secondary trading platform for digital securities and assets (such as cryptocurrencies and NFTs), that would transform the issuance, trading, and settlement of securities by creating a platform that reduces costs, eradicates fails, lowers the cost of capital, and minimizes risks.
Duration: 15 months – ongoing
Team size: 25+ developers
Tech stack: C#,.NET Core, C++, SignalR, RabbitMQ, WebSocket, Angular, NGRX, NX, D3.js, TradingView Library, Hyperledger Fabric, Terraform, etc.
Challenge: Developing a primary and secondary trading platform for digital securities and assets (such as cryptocurrencies and NFTs), that would transform the issuance, trading, and settlement of securities.The objective is to create a platform that reduces costs, eradicates fails, lowers the cost of capital, and minimizes risks. This will be achieved by utilizing on-chain financial market, settlement, and registry solutions via blockchain infrastructure, which will enhance efficiency, interoperability, global investor pools, and lead to greater price discovery.
Solution: GATENet DigitalFMI platform, based on microservices and clean architecture principles, is built upon STT system (securities trading and related platforms), which operates for more than 35 years. FMI components available from STT system are: ATS, CSD, Date/Swift Gateway etc. GATENet DigitalFMI platform incorporates the latest tech stack including the integration of private permissioned blockchain Hyperledger Fabric, as well as third-party integrations with Fireblocks, Jumio KYC/AML, and Elliptic for added security and compliance.
User group: Financial institutions including exchanges, banks, brokers, asset managers, and issuers, as well as individual investors.
In 2022, we have partnered up with the renowned GSX Group and their subsidiary – GATENet for the development of a new, blockchain project that will be a game changer in the Digital Securities/Assets & Web3 industry. The project aims to transform capital markets by offering a unique model that enables the exchange within a unified marketplace, resulting in improved efficiencies and decreased expenses for all parties involved. The Digital Financial Markets Infrastructure (FMI) project will launch a primary and secondary trading platform for the trading of digital securities (Equities, Funds/ETFs, Real Estate (REITs), Debt, etc) and digital assets (BTC/ETH/…NFTs…).
The platform needs to be interoperable and offer a turn-key solution that includes issuance, trading, settlement, and registry technology for various financial institutions. It collaborates with securities exchanges, registrars, custodians and CSDs, as well as protocol vendors, banks, payment service providers, escrows…
One of the significant challenges faced by the development team was ensuring high-scalability and security for the platform. It is designed to support an anticipated user base of over 100,000, requiring the ability to handle a high volume of transactions while maintaining its security measures.
The platform’s foundation rests on the principles of clean architecture and microservices to ensure modularity, scalability, and maintainability. The DigitalFMI boasts a resilient technology stack, which includes C#, .NET Core, C++, SignalR, RabbitMQ, WebSocket, Angular, NGRX, NX, and D3.js. Real-time data visualization and analysis of financial markets are enabled by the TradingView Library integrated into the platform.
To achieve simple and secure access to the digital asset ecosystem, we have integrated with Fireblocks, which is known for its exceptional crypto custody infrastructure. This integration has enabled AlgoMetric to acquire valuable expertise and support any subsequent Fireblocks integrations. This was also a critical step to ensure efficient handling of responses for withdrawals, deposits, balances, and communication with third-party digital asset custody.
Integrating with the reputable third-party KYC/AML provider Jumio, we have developed a streamlined KYC process that incorporates ID card, driver’s license, or passport verification, as well as face verification. This integration has been instrumental in facilitating the acquisition of customer information and identity verification.
We are presently working towards integration with Elliptic to ensure compliance with anti-money laundering regulations and enable effective risk monitoring. Through this integration, we will be able to monitor financial transactions, thereby preventing any occurrences of money laundering activities.
The DigitalFMI has integrated with a private permissioned blockchain Hyperledger Fabric to enhance the capabilities of the CSD. The implementation of blockchain technology will allow to build a fully on-chain financial market, providing heightened security, mobility, and finality, without compromising current functionality. In the upcoming version of the platform, the blockchain component is anticipated to replace the CSD.
Employing advanced technology and forming partnerships with the market-leading technology providers demonstrates the commitment to providing top-notch security and compliance to our users. The GATENet DigitalFMI is definitely set to revolutionize the digital trading industry. With v1 expected to be launched in 2023, our team is more than excited to see the benefits it brings to the financial market and the transformative impact it will have on the financial market ecosystem.