Introduction
The first recorded ledgers were clay tablets from Mesopotamia, dating back 7000 years. In 1492, the double-entry ledger emerged in Venice and quickly became central to global capitalism. This system of bookkeeping evolved over time and continues today, transitioning from pen and paper to digital databases.
Despite advancements, ledger technology in private markets lags behind other industries. Many investment sponsors and their investors still manually maintain records using outdated methods like Excel and Airtable. Transactional data, in particular, is difficult to reconcile and by the time it is, it’s already outdated. Transactional data is siloed and decentralized across various banks, lacking the connectivity and metadata needed for efficient money movement, transparent tracking, and reconciliation. This results in significant hurdles for accurate, real-time transaction data, leading to hours of manual updates.
Verivend is transforming this landscape as the financial connective tissue between you, your investment vehicles, and your LPs. The Verivend investment management platform offers an immutable, real-time centralized private ledger, delivering numerous benefits:
One Source of Truth: A centralized ledger ensuring accurate and consistent financial data.
Real-time Updates: Immediate recording of transactions for the most current information.
Trust & Transparency: Detailed, real-time transaction records for enhanced trust and auditing ease.
Automated Reconciliation: Proprietary technology provides a fully auditable ledger, reducing manual work.
Compliance & Audits: A comprehensive, tokenized ledger supporting compliance and auditing processes.
Security: Transactions secured with strong encryption on an immutable ledger.
The Tech: The Private Ledger for the Private Markets
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Verivend’s technology leverages tokenization to transform transactional data into an immutable, centralized private ledger. This ledger operates on advanced blockchain principles, ensuring every transaction is secure, traceable, and transparent. By integrating directly with bank accounts at the core financial layer, Verivend captures and records all financial activities in real time, offering unparalleled insights, control, and security over capital flows.
Key Components of the Verivend Private LedgerÂ
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Transaction
Each transaction represents a unique exchange of funds between a sender and recipient.
Each transaction includes unique and immutable details representing the specific exchange between the sender and recipient.
Verification
Each transaction is verified using several validation rules regarding the sender, recipient, and details of the payment.
Ledger
Immutable, transparent transactions linked sequentially.
Security
The ledger provides an immutable, historical trail that clearly records the complete movement of capital.
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How the Verivend Private Ledger Works
Transaction Creation
A user initiates a transaction that includes details like the sender, receiver, amount, and payment details.
Transaction Verification
Verivend validates each transaction using predefined rules (e.g., verifying the identity of the sender and recipients using advanced credentialing and Multi-Factor Authentication, and ensuring the sender has sufficient balance for the transaction).
Transaction Formation
Validated transactions are added to the Verivend Private Ledger once the ownership of funds changes between the sender and recipient.
Ledger Addition
Once a validated transaction is added to the Verivend Private Ledger, it holds the historical details of the transaction.
A ledger addition cannot exist without a validated transaction.
Immutability and Security
Because each ledgered transaction is added in sequential order, this prevents the alteration of a transaction or a transaction’s details.
This immutability ensures the security and trustworthiness of the Verivend Private Ledger.
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Data Security
All transactions are encrypted in transit via Transport Layer Security (TLS) over a secured connection with HTTPS.
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All transactional data is secured using AES (Advanced Encryption Standard) at rest.
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All data is encrypted using symmetric encryption AES encryption and SHA (Secure Hash Algorithm).
Benefits
One Source of Truth
Verivend’s centralized private ledger provides a single, immutable source of truth. Every transaction is recorded and stored securely, creating a comprehensive and trackable history. This ensures that all financial data is accurate and consistent across all platforms, eliminating discrepancies and reducing the risk of errors.
Real-time UpdatesÂ
Verivend offers real-time updates on all transactions. This immediate recording and reflection of financial activities ensure that investors and LPs always have the most current information at their fingertips. Real-time updates streamline decision-making and enhance financial oversight.
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Trust & Transparency
Customers can track their capital in real time, knowing exactly where their funds are at any time. This level of transparency is achieved through Verivend’s advanced digital ledger and reporting capabilities, which provide detailed records of every transaction. The platform offers full visibility into the flow of capital, allowing customers to monitor and audit their funds with ease. This transparency builds trust, ensuring that customers have confidence in the security and integrity of their transactions.
Automated ReconciliationÂ
Proprietary transaction processing technology provides an immutable and fully auditable ledger of all incoming and outgoing funds, reconciled with full transparency end-to-end in real-time. Automated reconciliation reduces manual workload and minimizes the risk of errors, enhancing operational efficiency.
Compliance & Audits
The fully digital, automated, and tokenized ledger provides a comprehensive and auditable record of all transactions into, out of, and between Verivend Vaults on the platform. This level of detail supports compliance and auditing processes, ensuring that all transactions are transparent and traceable. Verivend simplifies regulatory reporting and compliance, making it easier to meet industry standards and requirements.
Security
Every transaction within each Verivend Vault is fortified with 256-bit encryption on an immutable ledger, ensuring data integrity and confidentiality. Verivend’s robust security measures protect against unauthorized access and cyber threats, providing peace of mind to investors and LPs.
The Solution: Verivend Ledger
Verivend is revolutionizing ledger technology for private markets by providing a secure, centralized, and real-time source of truth. With advanced tokenization and encryption, Verivend ensures the integrity and confidentiality of all transactions. Real-time updates, automated reconciliation, and comprehensive audit trails enhance transparency, trust, and operational efficiency. Verivend empowers investors and LPs to manage their funds with confidence and clarity.
Set up and market your deal, open a data room, and onboard your LPs with our institutional-grade platform today!