Overview

The Custody function service in FinP2P is a an asynchronous and decentralized method that allows enables custodians to provide services to other FinP2P organizations , that offer investment opportunities to their clients (such as broker dealers, exchanges and banks), by acting as the custodian for their Investor's digital assets.

The Custody Service will provide a secure and reliable system for the safekeeping of an investors investor's financial assets (e.g a digital securitysecurities), ensuring that Investors assets are segregated, protected and managed in an efficient and transparent manner. The Custody Service will maintain accurate records of all assets under custody; the cryptographic materials related to keeping those assets; protection of assets from unauthorized access; approval of instructions from the account holders and regulatory reporting as required, and balance and information inquiries. It will also allow asset managers to provide various services to the their end Investors, using the custodial FinID custodied by them, such as distribution of dividends.

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To facilitate and orchestrate the custody process and the various use cases around it, we are adding a provider type to the network - the Custody service node. A Custody service node exposes to the FinP2P network a set of interfaces that allows the Investors to select a custodian service and operate trades on those while trading the assets under custody through other FinP2P Owner/Investor nodes (such as broker dealers, banks and exchanges). The custody service responsibilities include:

• Facilitating a Connect to custodian Custodian process, to onboard Investors on a custody wallet and associate it with the owner Owner FinP2P Profile on the Owner Node. This process insures that the owner is indeed the same owner that was onboarded by the Owner service (such as a broker dealer, bank or exchange) and therefore has the same certificates, such as KYC/AML.

• Approve and Sign FinP2P Transactions for the Investor Investor’s asset trades.

• See and report on the Investor asset holdings and balances.

• Facilitate Transfer of assets from an existing FinID identity to new custodian FinIDanother FinID managed by the chosen custodian.

• Facilitate the process of re-associating the custody FinID account to a different Investor profile on a new Owner Node in case of Node “termination” (such as in the event of a broker dealer bankruptcy).

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To enable this option, an Owner’s Profile Resource, which originally supported a single FinID, will now be upgraded to support multiple FinIDs, which can be associated to other custody service organizations.

This means an asset will see two types of FinP2P services associated with every owner:

• The Owner Profile - managed by the Primary Node of the owner (e.g. the broker deal, bank or exchange). This is the service that provide certificates for the Owner, present investment opportunities to the owner, and will enable the owner to initiate trades.

• The FinID of the Owner for that specific asset - managed by the financial institution’s node that provides the Custody service.

Each of the two service nodes will be entitled to receive some information from the asset, depending on their role.

Private Key Management

Private keys are crucial for accessing and transferring digital assets. The custody service node should securely store private keys and only allow authorized parties to access them. Multi-signature schemes can be implemented to ensure that multiple parties must agree before a transfer can be made.

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Investors associates a custodian provider (The Custody Node) with their owner profile on their Owner Node. (Note: the trading node is the institution where the investor is exposed to finding and researching new assets, trading etc , such as a broker dealer, bank exchange, etc).

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This will be achieved by updating the Owner’s Profile with multiple FinID’s - each with it’s associated Custodian. So, when a custodian requests information from the Asset, the asset can verify that the Custodian is indeed the manager of the FinID associated with the Investor.

Owner Node (

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example: Broker-dealer) termination

FinP2P will provide a process of re-associating the custody FinID account to a different owner profile on a new Owner Node in case of Node “termination” (such as in the event of a broker dealer bankruptcy).

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