TrueChain X 8 Decimal Capital :Official release of Pandaq — A cross-border blockchain financial technology platform

“Pandaq, the new financial paradigm”
Each generation has its own mission and opportunity

The future of capital market always involve a combination between technology and finance, and a balance between innovation and regulation.

Pandaq, in which the name comes “Panda” + “Nasdaq”, strives to be a leading financial technology service provider of the Asian market. Pandaq will provide digital asset distribution services for established businesses.

Looking back at history, thirty years ago, China issued its first publicly-issued stock, Xiaofeile. At that time, the Chinese Securities Regulatory Commission, stock exchanges, brokerage firms, stock index futures, ABS or digital assets didn’t. The capital market’s model, system and process have always been evolving with new technologies that emerged over time.

“Xiaofeile” stock released in 1989

In the early days, there weren’t any remote self-service transaction systems. All of the customer transactions were conducted over the phone through traders, who would then match deals on exchanges. Nowadays, all the stocks and wealth management products can be accessed and traded on computers and even mobile phones.

The Hong Kong Monetary Authority has indicated that it will issue its virtual banking licenses in 2019. Virtual banks are banks that provide retail services primarily through digital channels such as the Internet instead of physical branches. In the future, banks will no longer be entities with fixed locations but exist everywhere virtually.

In the United States, the entanglement between technology and capital is always happening. At the end of the War of Independence in 1783, the US federal government was in debt, and the Minister of Finance back then, Alexander Hamilton, proposed to issue government bonds to raise funds for the government and use the US government’s credit as a guarantee. A large number of “capital brokers” flooded into the market to serve as bridges between the government and investors.

Coincidentally, in China, some large commercial banks that mainly serve local financial and state-owned enterprises have become powerful bureaucratic organizations. The information technology revolution has an interesting effect of deepening the market at the economic level and pushing for new reforms in large financial institutions. For example, WeChat payment is making the concept of “cashless” a reality, and Alipay’s Yu’E Bao is allowing users to make deposits with only one click. These new business cases are showing the influential power of technological revolutions on society.

In 2018, Berkley’s former deputy mayor and 8 Decimal Capital’s venture partner, Ben Bartlett, proposed using blockchain technology to revolutionize public financing. He proposed to use blockchain technology to issue small amounts of encrypted municipal bonds in order to improve the transparency of the bond issuance process, increase dis-intermediation, reduce the costs for issuance, transaction and administration, which will lower the investment threshold, allowing ordinary people to invest in bonds.

Besides the invention of bonds, another important financial product is “stock”. In the 19th century, heavy industry companies such as the US railroad and shipping companies needed large sums of money to fund their development, and thus, public fundraising financial instruments came to existence.

With the appearance of IPO and joint-stock companies, ownership and management rights have been separated. In the United States, hundreds of railway companies issued stocks and were publicly listed. However, in the absence of supervision and control, railway stocks became a get rich quick scheme.

1923–1926: The Pennsylvania Railroad Company loaned gold bonds

The emergence of J.P. Morgan helped in implementing a structure for the fragmented and chaotic market. After entering Wall Street, J.P. Morgan completed a series of mergers and acquisitions and bankruptcy reorganization, integrating small inefficient companies into large companies, and allowing railway networks to form throughout the United States. The financial system has been a strong driver of the economy and helped the United States to quickly complete its industrialization process and become the largest economic power in 1900.

The railroad stock issuer that later became the largest commercial bank in the United States, JPMorgan Chase, announced in February 2019 that it will be issuing JPM Coin, a stable coin built on the corporate private chain platform Quorum that can be exchanged with the US dollar at a 1:1 ratio, becoming the first US mainstream bank to successfully release a digital asset. JPM Coin will play an important role in the issuance, transfer and redemption process in blockchain networks, reducing costs for the settlement of funds between customers.

J.P. Morgan released digital currency JPM Coin

In addition to Wall Street on the east coast, the west coast also has a concentration of technology and capital that cannot be ignored — Silicon Valley. The major reason why Silicon Valley venture capitalists dare to take on large risks on new technologies is because of the high potential of generating hundreds or thousands of returns in the secondary market.

Therefore, market bubbles, including the one from dot com and ICO aren’t just financial speculations, but necessary for the gestation of many future technology giants. In the Internet era, we had the appearance of giants such as Google, Facebook, Paypal, LinkedIn, YouTube, and Tesla. The blockchain era also had the emergence of potential unicorns such as Coinbase, Ripple, Circle, Polkadot, and Basis.

“Twitter and Facebook allowed everyone to become content creators. Blockchain technology will allow everyone to become investors.” Internet companies, including Facebook, Telegram, and Signal, are planning to include cryptocurrencies as payment options, allowing users to send money directly to their contacts through their messaging apps, incorporating digital currency into information systems.

We can speculate that with the further merging between technology and finance, value transfer will become as simple as information transmission, and the digital asset market will become the next opportunity in our time. For this reason, 8 Decimal Capital, as a cross-border investment fund focused on the blockchain industry, and the team of technology partners, TrueChain, jointly launched Pandaq — a financial technology platform that focuses on the issuance and circulation of digital securities.

Pandaq — a global cross-border financial technology platform based in Asia

Pandaq, in which the name comes “Panda” + “Nasdaq”, strives to be a leading financial technology service provider of the Asian market. Pandaq will provide digital asset distribution services for established businesses.

For the past few years, the digital asset market has undoubtedly been a dark horse in the global capital market, creating new wealth. However, the industry’s supervision and control systems have not yet been consolidated. Many projects lack real fundamental values and many of their promised technology and application in their white papers cannot be fulfilled.

There are assets and institutional investors with strong fundamentals waiting to enter the market, but there is a lack of professional, technical and legal service providers at the issuance level. In 2017, the value of global equity assets totaled $70 trillion, the total debt reached $100 trillion, and the real estate market totaled $230 trillion. These large assets backed with strong values can be empowered if they are combined with new technologies.

As we have seen, the blockchain technology and financial infrastructure are gradually being improved have made issuance and transfer of assets more convenient. The global legal system has also tried to incorporate digital assets into the regulatory framework. In the United States, many regulatory, issuance, exchange and custody platforms are starting to grow the ecosystem necessary to push the technology forward.

We believe that Asia should also have its own digital asset issuance platform. With this in mind, after nearly half a year of strategic and technology development, Pandaq and PandaST smart contracts will be launched as scheduled, providing asset issuers technical solutions, consulting, compliance, distribution, and liquidity.

The Pandaq platform will provide project parties with services such as investor status monitoring, investment application management, digital asset issuance and management, real-time cap table and investor information disclosure services. Additionally, the Pandaq platform will provide investors landing pages, KYC and AML, investor qualification and certification, process management, payment, asset management and more.

According to David Weild IV, former vice chairman of Nasdaq and now chairman of Weild & Co, in the future, the global digital securities market will have the following trends:

● Mainstream stock exchanges will start listing Security Tokens (eg Nasdaq, London Stock Exchange, Hong Kong Stock Exchange, Singapore Stock Exchange etc.)

● Large Wall Street firms will compete among each other and act as underwriters, dealers and agents. Retail customers will have access and be able to purchase Security Tokens from their securities accounts.

● Custody. Regulators (such as the SEC and FINRA) will be involved in regulation. Many small investment banks and ATS platforms (such as Templum, INX) have joined, and these entities may eventually be acquired by large companies coming into the space.

In North America and Europe, there are multiple exchanges owned by the Intercontinental Exchange ICE (the New York Stock Exchange, Euronext Paris, the Canadian Futures Exchange and other exchanges). In March 2018, ICE announced that it would create “an online platform to support real-time selling, storing and trading digital assets” — Bakkt. On February 25, 2019, the Nasdaq Stock Exchange also officially launched the BTC Index (BLX) and the ETH Index (ELX), which will help to bring in more traditional institutional traders.

In the final stage of the digital financial market: exchanges will provide a unified price for digital assets; professional market makers will provide liquidity; professional asset management institutions and custodians will manage assets, and professional issuance platforms provide smart contract related technical services.

Therefore, we will work together with partners across different fields in the industry to customize relevant services according to customer needs and create a better digital financial world by pushing forward the innovation in technology, finance, and governance.

About Us

Technical Team — — TrueChain

TrueChain (www.truechain.pro/) is offering to the next generation blockchain infrastructure. It is the world’s first public chain with fPow+pbft hybrid consensus with high performance and security, and a strong global open source technology community for decentralized applications (DApp). TrueChain’s products allow users to quickly and easily deploy and manage smart contracts. Products include Steller — a lifecycle management platform for smart contracts; Developer platform; Dapp Warehouse — a decentralized application warehouse, TrueScan Explorer and wallet, etc.

Investment Team — — 8 Decimal capital

8 Decimal Capital (8dcapital.com) is a cross-border blockchain investment fund with an AUM of more than $60 million. The team partners come from top-tier VC and PE firms. The fund’s advisors include Karen Chen, former CEO of Swiss Bank in China, Zhang Fan, former founder of Sequoia in China, and Ben Bartlett, former deputy mayor of Berkeley. 8 Decimal Capital has invested in various financial infrastructures including issuance platform (Securitize), security token trading platform (OpenFinance), stable coin issuance platform (TrustToken), payment application (SendFriend), and wealth management tool (Goodmoney), providing issuers full lifecycle solutions such as consulting, compliance, issuance, and liquidity.

To learn more, please visit:pandaq.net

In the next article, we will provide more information regarding the technical details of PandaST Protocol and the Pandaq’s digital asset issuance platform. Stay tuned!

PandaST Protocol

Pandaq Platform

Next Generation Public Blockchain with Hybrid Consensus combining DPoS and fPoW