Infrastructure
Axiology is a financial institution that operates a Distributed Ledger Technology Trading and Settlement System (DLT TSS) - a private, permissioned blockchain infrastructure built using the open-source code of the XRP Ledger. While it benefits from this technology, Axiology operates as an independent system, designed to streamline trading, settlement, and custody of tokenized assets, such as financial securities, with enhanced security and efficiency.
Secure, Compliant Network
Axiology ensures that only authorized financial market participants can operate nodes within its private blockchain, guaranteeing security and full regulatory compliance.
Real-Time Settlement & Custody
The platform enables instant settlement through electronic money tokens (EMT), and secure asset custody, eliminating settlement risks and simplifying the functionality of traditional financial markets.
Seamless Secondary Market
Axiology’s on-chain decentralized exchange (DEX) provides liquidity and seamless market access, allowing users to trade tokenized securities efficiently on a single, integrated platform.
Core Advantages of Using XRP Ledger Open Source Code
The infrastructure leverages the open-source code of the XRP Ledger as its core, integrating the following key advantages into Axiology’s private, permissioned network:
Scalability
Built to handle high transaction volumes, the architecture ensures that the system can grow alongside market demand without compromising performance.
Energy Efficiency
The XRP Ledger’s consensus mechanism is designed to have low impact on the climate since its power use is low, making Axiology’s infrastructure an environmentally sustainable solution compared to traditional blockchain systems.
Transaction Finality
The system delivers instant and irreversible settlement, enabling faster transaction processing and reducing counterparty risk.
Reliability and Proven Technology
By using a time-tested open-source framework, Axiology benefits from the robustness and reliability of the XRP Ledger, while operating independently from Ripple and the public XRP Ledger. This ensures that the platform remains self-sufficient while benefiting from the efficiency and security of XRP Ledger’s technology.
Interoperability
Axiology’s Distributed Ledger Technology Trading and Settlement System (DLT TSS) is designed to support interoperability with other blockchains and a wide range of financial systems. This ensures seamless integration across the broader financial ecosystem and enhances the platform’s functionality, efficiency, and adaptability to various use cases. The infrastructure integrates together traditional capital market systems and centralized payment networks to streamline cross-border transactions, payments, that enable real-time ownership transfer and the settlement, while ensure the compliance with traditional regulations.
Cross-Chain and Token Transfer Protocols
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Supporting wrapped token mechanisms for cross-chain compatibility.
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Implementing atomic swaps to ensure secure, trustless transactions across multiple blockchains.
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Connecting with Decentralized Finance (DeFi) ecosystems to tap into liquidity pools and staking protocols.
Axiology enables cross-chain interoperability, ensuring smooth token transfers between different blockchain networks. This enhances liquidity and broadens the availability of tokenized assets by:
Capital Market Infrastructures
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Financial brokers to facilitate compliance-driven trading.
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Custodians to ensure secure storage of digital and tokenized assets.
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Clearinghouses for post-trade processes.
The platform integrates seamlessly with capital market infrastructures such as:
Wallet Providers and Fintech Platforms
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Seamless support for multi-currency wallets, allowing users to hold, trade, and convert tokenized and fiat assets.
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Enhanced user experiences via integration with API-friendly fintech ecosystems.
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Secure transaction capabilities tailored to the needs of consumer-grade applications.
Axiology supports integration with digital wallet providers like Monzo, Revolut, and similar platforms, enabling users to manage tokenized assets alongside traditional fiat accounts. Features include:
API and Developer Tools
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Easy adoption for banks, brokers, and payment providers to extend their services into tokenized assets.
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Support for customized financial products using Axiology’s blockchain infrastructure.
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A developer-friendly environment for building on top of the network, including SDKs and extensive documentation.
The platform offers standardized APIs to simplify integration for third-party systems, ensuring:
By prioritizing interoperability, Axiology bridges the gap between traditional financial systems, emerging blockchain technologies, and innovative fintech platforms. This ensures that the infrastructure is future-proof, ready to evolve with the rapidly changing demands of the digital asset ecosystem while driving collaboration across diverse market participants.
Security Features
Axiology’s DLT TSS is designed with state-of-the-art security measures to ensure the integrity, confidentiality, and availability of data and transactions. By adhering to global standards and leveraging advanced technologies, the platform ensures robust protection against potential risks.
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As an ISO 27001:2022-certified organization, Axiology adheres to globally recognized standards for information security management systems (ISMS), ensuring robust protection of data assets. Our commitment extends to business continuity management, where we implement resilient processes to minimize disruption, ensure rapid recovery, and maintain critical operations in the face of cyber threats, system failures, or other unforeseen incidents.
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The platform is also DORA-ready, meeting the EU Digital Operational Resilience Act (DORA) requirements for operational continuity, ICT risk management, and third-party oversight. We prioritize operations security, applying stringent controls to monitor, detect, and prevent security incidents while safeguarding the integrity, confidentiality, and availability of our systems. Through continuous risk assessments, secure configurations, and proactive threat management, we ensure that our infrastructure, applications, and data remain protected against evolving security risks
Regulatory Compliance Features
Axiology, as a financial institution that encompasses the functions of central securities depository and multilateral trading system, is subject to European Union’s (EU) financial market regulation. Axiology’s DLT TSS infrastructure operates under the requirements of DLT Pilot Regulation, Central Securities Depository (CSD) Regulation and Markets in Financial Instruments (MIFID) Directive. Integration with Anti-Money Laundering (AML) protocols ensures that all participants in the network meet regulatory requirements, enabling safe and transparent transactions.
In addition, Axiology applies the following principles that ensure robust compliance of the infrastructure:
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Proof of Authority (PoA) Consensus: Axiology’s DLT TSS employs a Proof of Authority (PoA) consensus model. Unlike public blockchains, where any participant can validate transactions, PoA ensures that only licensed (authorized financial entities) and trusted entities are admitted to operate as validators. This approach guarantees a high level of trust, security, and compliance, while also reducing the computational overhead required for transaction validation. The PoA model strikes a balance between efficiency and accountability, creating a secure and robust environment tailored to regulated financial markets.
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Audit-Ready Framework: Axiology’s platform maintains comprehensive, tamper-proof records of all transactions and activities, ensuring full transparency and regulatory compliance. All transaction data is securely logged, time-stamped, and cryptographically verifiable, enabling seamless audit trails. The system supports automated reporting tools that facilitate compliance with financial regulations, including MiFID, MIFIR, CSDR, AML, while also allowing for customizable reporting to meet jurisdiction-specific requirements. With built-in role-based access controls, regulators and authorized entities can securely review audit logs, ensuring efficient oversight and real-time compliance monitoring.
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Cross-Border Compliance: Axiology’s infrastructure is built to seamlessly support cross-border transactions by integrating localized regulatory requirements across multiple jurisdictions. The platform ensures regulatory adaptability. By incorporating multi-jurisdictional compliance layers, automated reporting, and standardized APIs, Axiology facilitates interoperability with global financial systems, licensed institutions, and cross-border settlement networks, paving the way for a frictionless, regulatory-compliant digital asset ecosystem.
Risk Appetite and Sanctions Compliance: Axiology has a conservative risk appetite related to geographies, industries and sanctions implementation that is codified in Axiology’s Risk Appetite Statement. Axiology expects financial institutions operating on its platform to have the same or lower risk appetite related to platform trades. Axiology continuously screens financial institutions against applicable sanctions lists and has internal processes aimed at determining true sanctions matches, as well as freezing and reporting obligations.