Introduction

Fixed Income Markets within Custodian Infrastructure for Cryptos and Digital Assets

Term Structure Institutional (TSI) is an institutional-grade platform enabling clients to borrow and lend digital assets at fixed rates within a secure Fireblocks multi-party computation (MPC) wallet environment and a reliable TSI Electronic Communication Network (ECN). By combining transparent and flexible cryptocurrency financing with robust security and institutional-grade features, TSI empowers institutions, lenders, borrowers, and traders to participate in fixed-income markets with greater efficiency and confidence.

Key Benefits of TSI

• Institutions: Gain access to a TradFi-standard ECN, enabling efficient price discovery and transparent market access. TSI offers a familiar trading experience with clear benchmarks, facilitating informed investment decisions.

• Lenders & Borrowers: Benefit from fixed interest rates and fixed loan terms, providing predictability and stability for financial planning and strategy execution. This eliminates the uncertainty often associated with open-term lending.

• Traders: Trade digital assets securely on a platform powered by Fireblocks' cutting-edge Multi-Party Computation (MPC) wallets. This ensures the highest level of asset protection and mitigates counterparty risk.

Problems TSI Solves

Traditional and existing digital asset lending markets present several challenges for institutional participants:

• Uncertain Funding on Open Terms: Open-term loans expose institutions to fluctuating interest rates and unpredictable funding conditions, making it difficult to develop and execute long-term strategies. TSI's fixed-rate, fixed-term loans provide the necessary predictability for effective financial planning.

• Insecure On-Chain Environment: The DeFi ecosystem, while innovative, has faced security vulnerabilities and hacking risks. This deters institutional adoption. TSI addresses this by leveraging Fireblocks' robust security infrastructure, including MPC key management and transaction signing process.

• Limited Strategies in Custodian Wallets: Traditional custodian solutions often lack the functionality required for executing complex trading strategies. TSI overcomes this limitation by providing a platform designed for active participation in borrowing and lending markets.

• Inefficient OTC Borrowing Markets: Over-the-counter (OTC) markets for borrowing and lending lack transparency and standardized benchmarks. This leads to inefficiencies in price discovery and creates information asymmetry. TSI's ECN introduces transparency and facilitates efficient price discovery through a centralized order book.

TSI Solutions

TSI offers a comprehensive suite of solutions to address these challenges:

• Fixed-Rate and Fixed-Term Borrowing/Lending: Provides predictable interest rates and loan terms, allowing institutions to manage their finances with greater certainty.

• Assets under Secure Custody at All Times: Leverages Fireblocks' institutional-grade MPC wallets to ensure the security of user assets at all times, mitigating counterparty risk.

• Secure Over-Collateralized Lending: Offers an additional layer of security by requiring borrowers to provide collateral exceeding the loan value. This protects lenders from potential losses in case of borrower default.

• Efficient Collateral Liquidation Process: In the event of a borrower default, TSI provides a transparent and efficient process for liquidating collateral and recovering outstanding debt. This process is designed to minimize losses for lenders and maintain market stability.