HC Securities EXCHANGE
Blockchain Blockchain technology provides a secure and verified technology platform for transacting legal, financial, certifications, and sensitive data.
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Validation of transactions from multiple parties ensures trust in the system and eliminates or reduces black-markets, counterfeiting, piracy, and fake goods.
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It also provides control and monitoring of any/all transactions on the blockchain.
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Works with both fiat and/or crypto-digital currencies.
What if you could buy… SHARES in a Private Company
FUTURES of a new commodity
HC Securities EXCHANGE
LABOR in units per hour
Now you can!
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The Idea Bringing Blockchain to Securities A real-world use case for utilizing blockchain for secure transactions
Technology
Electronic Contracts
Combining Fintech and Blockchain
Legal contracts have gone digital with electronic
technology provides transparency,
signatures. Paperless contracts began in 2001
verification, and security.
“Specht v. Netscape Com. Corp.”
Financial Products
Regulation
Using existing financial products
Designed from the ground up, based on
and models to create secure
regulatory guidelines. Create the framework
tokens for block-chain.
first and working with regulators.
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HashCash Process Execution
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Hash Lock Each verified block of transactions is
The unit of value (security token) moves from the account of party A to the
account of party B.
time-stamped with a cryptographic hash. Each block also contains the reference to the previous block’s hash,
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creating records “the chain” that cannot
Verification Participating computers (Nodes)
be falsified.
evaluate the transaction and through
mathematical calculations determine
Block Creation
whether the transactions are valid.
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When “consensus” among the Nodes
Transaction is packaged with other
are valid and agreed-upon, the
pending transactions creating the
transaction is considered verified.
“block”. The block is sent into the system network for verification.
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Transaction Two parties (party A and party B) decided to exchange a unit of value (security token). This can be a certification, future, private equity.
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Exchange Nodes Bank
Underwriter
Each node is assigned to a vital
No single Node can act alone,
member of the exchange to
they must all work together.
verify a transaction.
Exchange
Regulator Each third party acting autonomously in verification of
Auditor Only together is the transaction verified and completed.
the transaction
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Exchange Products Certification Certification for pharmaceuticals, TCM, licenses, food.
Futures Any product that can be commoditized (sold in bulk measures) and delivered; seed, computer chips, plastics.
Private Companies Equity ownership in private companies can be tracked, bought, sold, and monitored
Labor Labor can be measured, tracked, sold, bought using various measures; per units per hour, amount, skill.
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The Exchange Charting Chart various blockchain security products
Account Balance Convert account balances into various fiat currencies: USD, EUR, CHF, HKD, …
Markets Private Equity and Futures. International Currency
Positions Monitor portfolio and all positions.
conversions Commodity Pricing
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HC Exchange Futures
A secure place to transact…
On a variety of unique
Certification
commodities.
Certification for
products
Labor
Labor per unit hour
or skill.
Venture Capital Private equity and Venture Capital.
Contracts
Contracts of value,
legal ownership.
Private Companies Direct ownership of private companies.
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HC Exchange System
User Network Members will have to verify via 2-step authentication. Can include IP certification (if needed)
Application Exchange application resides locally on the PC or mobile device. It must interface via a 2-step authentication
with server.
Validation (NODES) All transactions are verified by designated computers (nodes) selected
Encrypted Network Network encryption (point-to-point). All data encrypted at server level.
by project team.
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Exchange Security Security Token Tokens can not be duplicated.
Network Encrypted network and secure back-up facilities provide additional coverage.
User Verification Strict user access controls. • KYC / background process • 2-step authentication • IP verification
Blockchain Ledger All products (security tokens) and transactions are stored on a ledger.
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Exchange Recurring Revenue Exchange is the trunk of a prosperous tree
80%
Margin’s at
stabilization
operation,
exceed 80%.
Recurring Revenue is generated from four unique divisions of the exchange and work synergistically.
Underwriting
• Commissions from trading activity • Data from subscriber / api • Membership fees (application and monthly) • Underwriting fees (listing and participation)
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Exchange Revenue
Exchange Membership
$100/month
Data / API
$250/month
Commissions
ISO Equity
$1/per contract
.25%
Application fee and monthly
Exchange data can be subscribed
The fee per transaction, similar to
A small equity percentage of the
membership fees.
to by third parties or users. API
current listed exchanges.
ISO is paid as a listing fee to the
access.
exchange.
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Exchange Revenue Growth Membership Year one is projected to be 500 members. With year 4. This can expand considerably depending on
international adoption.
Data Based on our previous Fintech experience, data / API subscribers are conservatively estimate of 5%
Millions
growth expected to exceed 50,000 members by
700.0 600.0
500.0
of typical memberships.
Commissions
400.0
Analysis reflects conservative transaction
volumes at 10-20 per month among the demographic we are targeting. Private Equity trade size is $250k to $5m
300.0
200.0
ISO equity participation A .25% equity participation for the underwriting is directly attributed to the listing
100.0
capital amount of the ISO. Year 1 we expect 20 listing, with growth exceeding 400 by year 4.
0.0 Year 1
Year 2
Year 3
Year 4
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Exchange Development
90%
Network
60%
Exchange
30%
Staff
50%
Operations
Network development is
Exchange development is
Project staff and training
Operations, including
90% complete and
60% completed.
support staff for
technology and physical
operational needs is at
building is 50%
30%
completed.
funded.
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Success Proven
100%
Our team has built FinTech from the ground up, integrated it into every U.S. exchange, Wall Street, and major firms. Then sold it to
CBOE Global. We have the skill, knowledge, and ability. We took a step-by-step approach. 1. Identify the PROBLEM Execution
2. Create a SOLUTION
We began executing the plan:
3. Design the PLAN 4. Build it – EXECUTE
Solution We found a solution with
Problem We identified a problem in transacting traditional Private
Blockchain: Clearing,
Plan
Legal Entity (IFE)
We worked with industry leaders
Regulation (OCIF)
to design the plan; compliance,
Auditor (PWC/BDO)
technology, regulators, legal,
Technology (Blockchain)
and FinTech professionals.
Security (Encrypted Network) Centralization (Node Verification)
Transacting, Auditing, Reporting.
Equity.
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Partnership Interest Global Fortune 100
Family Offices
Unique futures contracts for
Easier access to private equity,
deliverables; seed, pharma,
alternative investments,
labor, plastics
Market Makers To find new opportunities to
create liquid markets and provide order flow
private companies.
Private Equity Access to capital, broader
market base, better transparency.
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