At CRD Network we are able to issue proof of reserves. This refers to the procedure in which an entity proves ownership rights of crypto and non-crypto assets. We use an aggregated service of proof of Physical Asset Reserves, which allows us to link a single source of truth to a single public key linked to a single KYC record.
Each proof of reserve attempt is stored and validated within Hyperledger Besu (private Ethereum network) which ensures immutability to the data.
Every ERC721 token refers to a real-world asset that is owned digitally. It’s issued on the back of a real asset and must meet all the rules and conditions regarding ownership and transfer. This means the owner has the ownership rights of any underlying physical asset which is described in a legal contract and is fully coded on our blockchain. This contract will include a wide range of information about the documents that would traditionally be exchanged with the sale of an asset. This information includes a certificate of ownership, identification data (for both buyers and sellers), and a notarial deed. The registration of the title is legally saved on a blockchain register, where it will be certified by notaries, digitized, unfalsifiable, and permanently accessible, allowing for faster exchange and tracking of information.
By using digital proof of physical asset reserves we allow for faster implementation of real-world applications within the DeFi space. For example, we can quickly establish full transparency whilst reducing the use of intermediaries between the loans origination and securitization. We also allow DeFi protocols to take part in real-world asset lending and borrowing, without the traditional problem of borders. Instead, we allow for borderless transactions which we hope will one day lead to a globally accepted interest rate on loans.
This procedure also has an impact on the way we record the provenance of a loan. With an immutable origination, the costs of upfront audits, compliance, and QC will be significantly reduced. In addition to this, deals themselves will also become cheaper, with smart contacts and immutable data creating an instant certainty to assets. Liquidity of assets will also improve, with real-time transparency regarding any underlying collateral.
At CRD Network, we aim to bridge the data gap between on-chain data and the offline economy. One way of doing this is to have a connection to the open banking functionality. We can achieve this through the Payment Service Directive (PSD2), an EU Directive created in 2015 to regulate payment service providers throughout the Eurozone. We aim to build a more systematized European transactions market and to increase security for customers. This would allow you to connect your real world assets value to the on-chain & Defi world.
PSD2 required banks to provide open APIs, which allow for external programs to read and interact with the bank’s data once certain security requirements have been met. At the moment we are looking to utilize three main functions: AISP, PISP, and PIISP (CISP).
AISP - Account Information Service Provider. Allows to retrieve account data provided by banks and financial institutions.
PISP - Payment Initiation Service Provider. Allows to initiate payments into or out of a user’s account.
PIISP - Payment Instrument Issuing Service Provider. Also known as CISP (Card Issuing Service Provider) - the same as PISP, but for cards.
These functions will allow us to fetch off-chain user information on demand (once the user has approved) via third party banks. With this information, we will be able to provide better user coverage and UX.
At CRD Network, we have integrated with a licensed and insured crypto custody solution to maintain a bridge between traditional finance and the world of cryptocurrency. This allows us to:
Create & maintain crypto accounts
Create transfer transactions in the corresponding blockchains
Real time monitoring of the balances for an address or list of addresses on chain with real-time updates and indicative values
Real-time transactions monitoring per address/list of addresses
Self-custody support (Metamask wallet)
Crypto to crypto services (cent)
NFT storing and generating
To ensure the highest levels of security, each wallet is insured and stored in the external secured custody.
For more information about our proof of reserves procedure, please contact us directly.