Bitcoin's Blockchain

Introduction Ravi Beegun KPMG Luxembourg WiFi Username: digitalfund Password: 6297 9am Introduction Ravi Beegun, KPMG Luxembourg

9:10am Demystifying blockchain Eric Larcheveque, Ledger Wallet

9:30am The investment management revolution beyond blockchain Pierre Gerard, Scorechain

9:50am The FinTech that the investment management sector has been waiting for? Practical implications

Debate with: - Fabrice Croiseaux, InTech - Eric Larcheveque, Ledger Wallet - Laurent Kratz, Scorechain moderated by Said Fihri, KPMG Luxembourg

10:30am Closing and Q&A

Blockchain potential applications – a few examples

Trading Clearing and Recording Identity verification Settlement Trading of illiquid Instantaneous Proof of existence Blockchain based securities execution and and ownership of KYC settlement assets

No reconciliations / Perfect audit trails

© 2016 KPMG Luxembourg, Société coopérative, a Luxembourg entity and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved

Document Classification: KPMG Confidential Demystifying Blockchain Eric Larcheveque Ledger Wallet demystifying blockchain

Eric Larchevêque blockchain ● database ● distributed ● fully auditable ● irreversible ● slow, inefficient blockchains permission-less permissioned

public semi-private trustless trusted censorship resistant regulated irreversible reversible

Ƀ Ξ R3CEV / IBM / ... Permissioned blockchains are a challenge for IT departments.

Bitcoin’s blockchain is a challenge for executive committees.

The strength of Bitcoin powers the resilience of the blockchain.

It drives a new paradigm: innovation without permission. Smart contract programmable money Abra

Turning smartphones into ATMs

Global peer to peer money transfer network BTCjam

Global peer-to-peer lending platform ChangeTip

Micropayment infrastructure Colu

Issuing digital assets on the Bitcoin blockchain

Fully traceable, transferable and secured. notarization proof of existence digital identity securities loyalty points prediction markets pre-paid minutes energy credits asset management votes ... What we do at Ledger

trusted hardware for blockchain applications thank you The investment management revolution beyond blockchain Pierre Gerard Scorechain KPMG April 19th 2016 Pierre GERARD cofounder –CEO @pierreneo

Scorechain S.A. © Blockchain

Public ledger Distributed Database

Distributed Computer Smart contracts

Independence No central authority

Scorechain S.A. © Public Ledger

Distributed accounting The ledger validates the transactions

Can register any assets “tokenization”

Scorechain S.A. © Smart contracts

A legal contract is a program in a Blockchain

Can verify external sources and identity – digital signatures & KYC,…

Can generate instructions such as payments or moving assets

Scorechain S.A. © Fund Industry

Scorechain S.A. ©

Shareholders Sponsor

Brokers

FUND Investment Manager Retail Distributors Customers

Custodians

Administrator Transfer Agent

maintain records of shareholder accounts, calculate and distribute dividends and capital gains, and prepare account statements, income tax information, and other shareholder notices

responsible for holding and safeguarding the securities owned by a fund

Scorechain S.A. © Dividends, capital gains Tax report – withholding tax? Shareholders reports NAV Calculation Account balances, Statement Trailer fees Audit KYC / AML Subscription, Settlement! Scorechain S.A. © Regulation

not too soon, please! regulators can use blockchain to monitor the activity while maintaining the privacy “read only access”

"Blockchain tech has the potential to impact of all three of our core businesses – advisory, tax and audit.” KPMG - http://www.coindesk.com/kpmg-blockchain-antidote-regulatory-costs/

Scorechain S.A. © YES WE CAN open protocol improves availability, reliability reduces cost almost real time opportunities for new comers Robot Investors ? DAO ? NO, IT WON’T WORK integration with legacy systems cost of change privacy (New?) Regulation banks don’t want to change banking

incubated during 18 months incorporated in July 2015 blockchain analytics & intelligence now for Bitcoin for customers also for assets management – insurance,… smart-contracts Scorechain S.A. © Scorechain S.A. © Scorechain S.A. © Interested in all blockchain applications and use cases

Practical implications - Panel Fabrice Croiseaux Laurent Kratz InTech Scorechain Eric Larcheveque Said Fihri Ledger Wallet KPMG Luxembourg | Moderator Q and A & Closing remarks

Thank you Coming up…