KoreSettlement
KoreChain performs complete settlement of direct transfers and secondary trades from alternative trading system (ATS) platforms.
Preventing Double Spending with KoreChain
Ensuring Transaction Integrity and Security
Prior to initiating the trade, the KoreChain places a hold on the number of shares in the seller’s account to prevent “double spending”. This ensures that all subsequent transactions that may cause double spending are prevented, not just secondary trades (such as, for example, beneficial transfers, private sale requests, and estate transfers).
ATS Operators and KoreChain
Streamlining Trade Facilitation and Compliance
Once the trade is placed on the ATS, the ATS Operator takes over the process of facilitating the trade. When a valid counterparty (buyer) is found, the ATS Operator onboards the buyer and obtains a KoreID through their ATS KoreNode (unless the buyer already has a KoreID). The KoreChain ensures that only pre-authorized KYC providers and Compliance Officers have verified the buyer.
Seamless Transfer Requests on KoreChain
Facilitating Secure and Transparent Transactions
After the ATS Operator confirms receipt of payments from buyer to seller, the ATS system issues a transfer request to the KoreChain. The request contains the details of the transfer, such as number of shares, date of sale, price, and KoreIDs of buyer and seller, and validating credentials.
Simplifying
Approvals
and Cap Table Updates for
Issuers and Buyers
Once all the approvals and validations have been completed, the KoreChain gives final approval whereby the cap table of the Issuer is updated and the new buyer receives a welcome email (in case of a new account holder) to register and view their holdings or a notification email (in case of an existing account holder).
KoreContract on
KoreChain
Ensuring Transaction Validity
and Compliance
The KoreContract on the KoreChain verifies the validity of the transaction and also performs any remaining verifications that may be required based on the KoreContract, such as the approval from the Issuer’s board of directors or required completion of provisions for right of first refusal, etc.
