Auto-Reconciled Collateral (ARC) contracts are non-custodial, smart contract enforced, P2P forward contracts. Powered by bitcoin, they enable real-time trade valuation, margin call calculation, and asset movement instructions without counterparties.
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Accepting bitcoin as payment is only part of the problem. Corporations are hesitant to hold bitcoin in treasury because there is no clear and easy way to utilize this new asset class for company benefit, particularly for working capital (collateral).
• Limited to appreciation of asset or tax losses.
• Value of holdings in treasuries can negatively affect balance sheet.
• Requires specialized technical expertise and infrastructure. •Requires secure storage solutions and sophisticated trading platforms.
• No ERP integration of bitcoin transactions and/or collateral settlement.
• Lack of financial instruments to hedge bitcoin price.
Corporations often collateralize assets through forward contracts. But, the legacy financial system is fragmented and inefficient requiring many intermediaries adding friction & cost. This is especially true with the inefficient OTC derivatives market.
• Collateral is posted in case future obligations cannot be met by counterparty.
• Traditional derivates are manual and error prone, can take days to finalize.
• Collateral is currently MTM once a day, prone to disputes, and locking more capital than necessary.
The BlockSpaces platform allows both parties to a transaction to dynamically upload ISDA/ CSA legal agreements that govern the nature of the collateral exchange and margin calls. Collateral intraday exchanges can also be tied to a data oracle to track the real time bitcoin price as it changes throughout the day.
Join the WaitlistThe volatility in the market, its unique characteristics, and continued expected instability, present a unique opportunity to incentivize corporations to hold bitcoin in treasury and also reimagine and modernize legacy processes by using Bitcoin/Lightning as the automated infrastructure of the future.
Businesses or financial institutions can realize a range of benefits from Auto-Reconciled Collateral (ARC) on the BlockSpaces platform.
Real time, single source of truth in data and calculations. Limiting time between mark-to-market calculations and the resulting counterparty exposure.
Automate workflows, remove intermediaries, eliminate reconciliation.
Decreased contract liquidations due to automated mark-to-market calculations and collateral posting. Immutable audit trail.
ARC contracts revolutionize your existing business systems, with no need to migrate to a new software. End to end integration out of the box.
Hedge volatility of bitcoin price for business operations.
Are you a company that holds Bitcoin in treasury, a miner that needs access to capital, or a company that utilizes traditional finance with regulatory infrastructure that is looking for a more efficient solution?
Join the waitlist for our private beta today and be among the first to access the future of finance.
