Where digital assets represent a financial instrument DALAW works on the basis of the ACTUS Financial Protocol (AFP). ACTUS is the Algorithmic Contract Types Unified Standard, a project aimed at creating a global standard for the consistent representation of financial instruments. ACTUS achieves this by focusing on cash flow patterns instead of legal terms. With very few exceptions, virtually all financial instruments currently known can be represented by parameterizing and combining a set of 32 ACTUS financial contract types – ranging from very simple Principal at Maturity (PAM) or Annuity (ANN) bonds to Stocks (STK) or Commodity (COMM) Instruments to derivatives like futures (FUTUR) or option (OPTNS) and credit default swaps (CDSWP). A complete overview of the ACTUS taxonomy can be found here.
The ACTUS Financial Protocol (AFP) leverages on the ACTUS protocol and provides an open blockchain-agnostic standard to create compatible digital assets across issuance platforms. AFP enables issuers to tokenize all financial instruments in a consistent and systematic way. They can create digital assets that are interoperable and economically transparent across solutions — compatible financial building blocks that can talk to each other. Further, these assets have plug and play capabilities which allow market participants to add them to their systems and service them without prior integration or configuration. More information on AFP in this blog from Michael Swoboda.
ACTUS is an open source project furthered by the ACTUS foundation. We are proud to closely work together with Dr. oec. Willi Brammertz who is a board member of the ACTUS foundation and founder and president of Ariadne Business Analytics, our partner for financial risk management services.