Trust Deeds on the Blockchain? With The Swedish Trust, It’s Possible
Blockchain an save the world from global warming by reducing the need for papers.
The Swedish Trust is aiming to be the first company in the world to create trust deeds for clients on the blockchain, with an entire ecosystem surrounding the process to ensure transparency and efficiency plus a digital currency to support it. Trusts are often highly complex legal arrangements; but they need not be complex and time consuming.
First conceived many hundreds of years ago, trusts provide a unique method of assets management. This uniqueness relates to how wealth is used and relies on the separation of beneficial ownership from the responsibilities of asset management. At its simplest, a trust is an arrangement whereby property or assets are transferred from one person (the ‘settlor’) to another person (the ‘trustee’) to hold the property for the benefit of a specified list or class of persons (the ‘beneficiaries’).
A trust can be created solely by verbal agreement, but it is usual for a written document (the ‘trust deed’) to be prepared. Trusts now appear in the form of international commercial investment and trade vehicles; public and private pension funds; and charities, to name but three of the more economically significant. However, more individuals are now adopting trusts for various reasons. Trusts conform to traditional privacy models found elsewhere in banking and finance, insofar as they shield from public view the identities of the objects of the trust, as well as the nature of many of the trust’s investments and transactions.
It is primarily in regard to where this “shield” is positioned that greater levels of transparency apply on blockchain.
Trusts now appear in the form of international commercial investment and trade vehicles; public and private pension funds; and charities, to name but three of the more economically significant. However, more individuals are now adopting trusts for various reasons. Trusts conform to traditional privacy models found elsewhere in banking and finance, insofar as they shield from public view the identities of the objects of the trust, as well as the nature of many of the trust’s investments and transactions. It is primarily in regard to where this “shield” is positioned that greater levels of transparency apply on blockchain.
Blockchained Trusts
Blockchain is essentially a peer-to-peer, distributed ledger system that is able to register information in an immutable way. This could take the form of a register of legal titles to property and beneficial interests, both of which are central to trusts. Aside from supporting cryptocurrency, blockchain technology can also be used to record information such as transactions — from a government standpoint, that could mean things such as property deeds, citizen payments and the supply chain of procured items. The string of letters and numbers, called a hash, is essentially the name of the location of the information in the blockchain. Blockchain technology now allows us to streamline and simplify transactional work, digitally sign and immutably store trust deeds. Using scripted text, smart contracts, and automated contract management reduces excessive time spent preparing, personalizing, and maintaining standard documentation. These cost savings are passed on to the customer. Additionally, blockchain simplifies access to trust deed by cutting down on consumer complexity and lowering hefty fees. A distributed ledger technology creates a shared ledger accessible by all parties to an agreement. Blockchain-based agreements have built-in compliance, no surprises, and no room for misinterpretation or manipulation. Additionally, non-technologists can better understand the transactions they enter into and what the smart contract represents.
A trust deed created and managed on a blockchain reduces the time spent on administrating such trusts manually. Utilizing an agreement repository and pre-fabricated smart contracts, we can automate non-billable administrative tasks and transactional work. Cutting down on excessive manual labor will also accelerate our ability to deliver our services better to clients and decreases overall costs for all parties. The way blockchain operates makes the trust deed even more transparent for all parties, and at the right junctures. For example, during the initial stage, only the settlor and trustee enter into an agreement, and if the beneficiary is a separate party that the settler does not wish to disclose the information of the transaction to, it can remain that way until necessary. At the same time, the settler can make any required amendments to the deeds effortlessly. Electronic signatures bring speed, efficiency, and cost savings to the authentication process. Signing on blockchain costs the signer a fraction of the cost compared to e-signature platforms like DocuSign. The other benefit is that it reduces unnecessary reliance on paper agreements to almost zero, saving the environment from greenhouse emissions.
Swed Coin Ecosystem
The Swedish Trust is at the forefront of applying cutting edge technology and innovation on how trust deeds can be administered. It has not only adopted blockchain technology and decentralized finance, it has also created a digital currency to manage payments and fees. With decentralized finance, there is zero reliance on banks. Tokenization is a method that converts rights to an asset into a digital token. Interested parties can issue tokens on a platform that supports smart contracts that will enable the purchase and vending of this token on exchanges. Blockchain technology gives us the possibility to transact with whoever we want, wherever and whenever in a matter of seconds.
We are creating a decentralized network of modern financial services empowering everyone to take control over their financial future, regardless of demographics or access to traditional banking services. The Swedish Trust Ecosystem, with Swed Coin at its core, will be at the forefront of the future of banking with cross-border, cross-asset, and cross-currency investments. Our vision is to unleash true globalization of banking for everyone. With the use of evolutionary blockchain technologies, we are creating the first open and borderless ecosystem of financial services. Simplification at the core of this ecosystem will incentivize all participants — users, traders, and partners — to work in the same direction to make a global frictionless investment environment. What does this mean for the average person? It means: • Quick and easy conversion from cash to crypto. • Easier access to investments. • Increased influence in corporate & foundation decision making. • Cross-border payments & investments for a fraction of the cost. • Ability & confidence to use crypto-currency in everyday transactions decentralized cash deposits & withdrawals. • Global access to new banking network, that defies the banking system that we know now. The Swedish Trust will improve network synergies by encouraging a network effect for Swed Coin by implementing it as a settlement network for all the digital services. SwedXchange will also use it as a settlement network for all trades. Swed Coin will emerge as a sustainable autonomous investment network that can empower existing and new ventures, while building a decentralized investment network for the future.
The Swed Coin Ecosystem will seek to establish a true borderless investing experience, with users benefiting from access to a diverse spectrum of cryptocurrencies and investment opportunities through a seamless investing experience. In a nutshell, The Swedish Trust has formulated a one-of-a-kind system that incorporates the setting up trusts in the most efficient and transparent way possible, together with a ecosystem in which participants stand to be reap benefits and rewards.
