Digital Asset Treasury Solutions for Enterprise

Founded: 2018; Ledgermatic brand announced January 2021

Product(s): Ledgermatic

Overview: This is about managing crypto-finance assets. Ledgermatic will enable CFOs and treasurers to build and deploy their own payment networks, undertake cash management functions, reconcile on-chain (e.g. blockchain) transactions into financial statements, finance operations and conduct risk and liquidity management, using a variety of digital assets including crypto-currencies. Corporate users are expected to be able to reduce their reliance on correspondent banks and their exposure to cross-border and cross-currency settlement risk and foreign exchange (FX) volatility.

Ledgermatic digital asset platform integrates with existing banking and enterprise resource planning (ERP) software. It is built on confidential computing technology provided by IBM Cloud Hyper Protect. It is intended to help organisations unlock liquidity, control risk, and manage both traditional and digital asset flows from a single portal, with cryptographic governance and controls for the entire asset portfolio.

The platform is underpinned by Ledgermatic’s proprietary Confidential Key Construction (CKC) algorithm, which provides an alternative to multi-party computation (MPC) by maintaining non-repudiation and embedding governance and controls into all key shards for provable decision-making.

Ledgermatic CEO Luke Sully has been involved in the digital asset and blockchain space since 2013, serving in executive roles at IBM Security where he worked in blockchain and cryptographic services for Tier 1 financial institutions in Europe. CTO Isaac Fain is a Seattle and Silicon Valley technologist, who has held engineering management positions with Amazon, MSN and Microsoft before moving to Europe where he was Head of Engineering for Wallet Technology at BTC.com, a subsidiary of Bitmain.

In February 2021, Ledgermatic announced that it had selected Algorand as its blockchain protocol partner. Algorand will now form the base protocol layer for Ledgermatic, providing clients with on-chain and cross-chain asset movements from its permissioned network to Algorand’s public network. At the sawm time, Ledgermatic also announced funding from Borderless Capital, a venture capital firm focused on supporting and developing the Algorand ecosystem.

In April 2021 Ledgermatic published a whitepaper looking aspects such as how companies can interoperate between fiat, CBDC and digital assets, what digital asset accounting and reconciliation modules are available, and how to use digital payment, liquidity and credit functions.

In September 2021 Ledgermatic launched a strategy paper for CFOs and corporates in general looking at the treasury implications and opportunities of digital assets. attached

In Q2 2022, the firm will be releasing a ‘Decentralised Autonomous Organisation’ (DAO) Builder within Ledgermatic. This will enable organisations to convert to DAOs, and permits DAOs to manage governance and controls of their digital asset treasury. 

“The Ledgermatic digital asset platform future-proofs organisations for the emerging token economy while maintaining optimal security and compliance in a dynamic regulatory environment.”

Clients: Undisclosed

Active region(s): Global. EU-based with subsidiaries in the US and UK

Partners: IBM (infrastructure partner), GENTWO Digital (EU structured product offering partner), Algorand (money market & L1 protocol partner), Zero 1 Capital (corporate advisory), and Elliptic (compliance monitoring partner)

Employees: Currently a team under 10 across US, UK, Ireland, and France

Funding: Undisclosed

Ownership: 100% equity ownership held by the founders of Custody Digital Group Services Ltd

Elevator pitch: “Ledgermatic is the gateway to digital assets and decentralised finance for CFOs and finance teams, providing a product suite that enables enterprises and financial institutions to perform compliant digital asset treasury services. The Ledgermatic platform provides the highest levels of security and compliance, enabling CFOs and treasurers to integrate a set of digital-asset-denominated financial products and risk management tools. Leveraging confidential computing technology provided by IBM Cloud Hyper Protect, Ledgermatic is underpinned by an alternative algorithm to multi-party computation (MPC), dubbed Confidential Key Construction (CKC), preserving non-repudiation properties while embedding governance and controls into all key shards to guarantee provable decision making. In a push to modernise corporate treasury, the Ledgermatic digital asset platform future-proofs organisations for the emerging token economy while maintaining optimal security and compliance in a dynamic regulatory environment.”

Website: Ledgermatic.io

Email: [email protected]

Phone: 00 1(888) 589-4094

TMI view: As digital assets move into the mainstream, so adopters will need a platform to manage traditional and digital assets together. Ledgermatic appears to have carved out a niche for managing the rapidly shifting crypto-finance world alongside its traditional counterpart. Prudently, it appears to have paid rigorous attention to security.

Verdict: A timely solution for the rising star that is the digital asset.