PRELUDE

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About PRELUDE

What is PRELUDE? PRELUDE is a secure, decentralized network that can be used by all institutions entering thefast growing digital custody business.

THE CHALLENGE

01The need for custody services on Digital Assets

Over the past years, digital assets have become more and more known to the large public. What used to be an investment reserved to a few people has become a new Asset Class. And institutional investors need to get exposure to this new asset class, no matter if they think if it’s going up or down.

“Family offices, hedge funds, other sophisticated investors, are starting to think seriously about this space.
Our clients are thinking about this as an investable asset class.”

Tom Jessop, Fidelity, 6.8 Trillion USD under administration

But when you are an institutional investor, you need someone to hold your assets on your behalf. That’s the role of custodians. Whatever asset an investor holds, he needs a regulated and trusted entity to insure his assets won’t be lost or stolen.

Those traditional custodians are seeing ana increase demand from their clients to service this new asset class of digital assets. Traditional custodians are looking at ways to position themselves on this new business and respond to their clients’ demand.

02The Challenge for custodians

The issue is that holding digital assets is pretty different from holding traditional assets. Digital assets are controlled by a password known as a private key, and because it’s decentralised - if you lose the private key you lose the control over the assets.

This means that servicing assets creates new risks and challenges for custodians. In order to respond to their clients demand, they need to invest in new systems, and risk their reputation and a lot of money on new systems they do not even have a lot of history on. The sensitivity of the information they need to hold is so high that even regulation is still unclear regarding what security systems should be put in place.

The need to invest so much, risk their name and get expose to unknown regulation makes the strategic decision to engage in this new business too complex and risky.

While major institutions like Fidelity and ICE are developing their own in-house solution to enter the market, most of traditional custodians are still monitoring the market without taking any strategic decision.

WHAT IS PRELUDE

PRELUDE Improves Custodian Function through Blockchain Technology

HOW PRELUDE WORKS

01Upload Process

02Transaction Process

  • No single node in the network knows the complete private key
  • Redundancy in the network ensures that no single node can block the signature of the transaction

03Recovery Process

  • User key is lost orcompromised

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    Assets are secured bynetwork

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    User requests networkkey recovery

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    Network verifies IDmultiple times

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    New user key isgenerated

BENEFITS of PRELUDE

PRELUDE is the Digital Custody Solution for everyone

Institutional Custodians
  • PRELUDE is PLUG AND PLAY : No need to develop new specific infrastructure
  • Immediate and easy Implementation
  • Processes are identical to traditional custody
  • No need for third-party insurance
All Digital Asset Holders
  • Institutional grade custody for crypto-assets
  • Secured Private Key
  • Proof of Ownership
  • Proof of Assets
  • Recovery function
  • Redundancy(No single point of failure)
  • Distributed counterparty risk
  • 24/7 guaranteed access to assets