blockchain technology and the asset management industry

Blockchain Technology and the Asset Management Industry

Table of Contents

Global Developments in Blockchain Technology

Blockchain and the Asset Management Industry

Key Takeaways for Asset Management Firms

2

Global Developments in Blockchain Technology

A recent World Economic Forum survey suggested that by 2025,

10% of global GDP will be

stored on a blockchain

4

5

Banks are increasing investment in blockchain technology globally

Blockchain and the Asset Management Industry

Confidential and Proprietary

Evolution of Blockchains

7

Public Blockchains

Permissioned

Non Permissioned

Financial Institutions

Public Use

Trustless

Trusted

?? ? ??? ??

Bitcoin

Bitcoin introduced the concept of public blockchains in 2009. Private blockchains, like Paxos’ Bankchain, are built to meet the needs of financial institutions, using permissioning to make all participants accessing the shared ledger known.

Private Blockchains

Private Blockchains Offer Key Benefits for Asset Management Firms

Secure, Immutable Records

8

Stable, Distributed

Infrastructure

Real-Time Asset Control and Tracking

Real-time settlement

Direct fund subscriptions and redemptions

Enhanced AML / KYC

Blockchains will deliver new efficiencies to the asset management industry

9

Key Takeaways for Asset Management Firms

11

Blockchain technology is in its early stages with new innovations and use cases emerging continuously

12

Blockchains will directly impact settlement times, fund subscriptions and redemptions and AML/KYC

13

Now is the time for asset management firms to identify relevant use cases and develop a blockchain strategy

14

Experimentation, collaboration and willingness to embrace blockchain technology are important to win in the future

paxos.com | twitter.com/paxosglobal

Legal InformationForward-Looking StatementsAll information contained in this presentation is subject to further modification and any and all forecasts, projections and forward-looking statements (collectively, “forward-looking statements”) shall not be relied upon as facts nor relied upon as any representation of future results. Although forward-looking statements contained in this presentation are based upon what management Paxos believes are reasonable assumptions, there can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. These forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such statements. Paxos undertakes no obligation to update any such forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.

No Representations or WarrantiesPaxos and its affiliates, employees and representatives make no representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein. Paxos and such persons expressly disclaim any and all liability relating to or resulting from the use of this presentation, its contents, its omissions, reliance on the information contained herein, or opinions communicated in relation thereto or otherwise arising in connection therewith. The information contained in this presentation has not been independently verified.

No Offer or SolicitationThis presentation is not a prospectus or offering document for any securities. This presentation does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for securities nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Unless and until a definitive agreement is executed and delivered, there shall be no legal obligation owed by and between Paxos and the reader of any kind whatsoever

15