Platform for coordinated credit-based and non-custodial digital asset settlement
A plurality of computer-based transactions facilitated by each of a plurality of custodians are monitored. A first transaction of the plurality of transactions includes a transfer of an amount of cryptocurrency of a first type by a first counterparty to a second counterparty in exchange for an amount of cryptocurrency of a second, different type. Transaction packages are generated by each counterparty which include requisite information to effect the transfer. A settlement coordinator asynchronously receives (via a computing network) the transaction packages which specify information required to (i) transfer the cryptocurrency of the first type from the first counterparty to the second counterparty on a first blockchain and (ii) transfer the cryptocurrency of the second type from the second counterparty to the first counterparty on a second blockchain. The settlement coordinator after receiving the first request and the second request accesses the first blockchain and the second blockchain to transfer ownership of the cryptocurrency of the first type and the cryptocurrency of the second type to effect the first transaction.
1. A computer-implemented method comprising:
monitoring, by an off-chain transaction manager, a plurality of computer-based transaction requests facilitated by each of a plurality of custodians, a first transaction request of the plurality of transaction requests specifying a transfer of an amount of cryptocurrency of a first cryptocurrency type by a first counterparty to a second counterparty in exchange for an amount of cryptocurrency of a second, different, cryptocurrency type, wherein the first cryptocurrency type is traded on a first blockchain using a first protocol and the second cryptocurrency type is traded on a second blockchain using a second protocol that is different from the first protocol;
initiating, by the off-chain transaction manager and at a pre-defined time or interval, a first request for settlement of the first transaction by the first counterparty, the first request for settlement comprising a first transaction package encapsulating instructions to effect a first sub-transaction transferring the cryptocurrency of the first cryptocurrency type from the first counterparty to the second counterparty;
receiving user-generated input in response to the first request for settlement approving the first request for settlement, the approving comprising retrieving a first encryption key associated with the first counterparty and the first cryptocurrency type from a remote computer-based wallet and receiving user-generated input via a graphical user interface signing the first encryption key;
initiating, by the off-chain transaction manager and at the pre-defined time or interval, a second request for settlement of the first transaction by the second counterparty, the second request for settlement comprising a second transaction package encapsulating instructions to effect a second sub-transaction transferring the cryptocurrency of the second type from the second counterparty to the first counterparty;
receiving user-generated input in response to the second request for settlement approving the second request for settlement, the approving comprising retrieving a second encryption key associated with the second counterparty and the second cryptocurrency type from a remote computer-based wallet and receiving user-generated input via a graphical user interface signing the second encryption key;
asynchronously receiving, from the off-chain transaction manager and by an offchain settlement coordinator, over at least one computing network, the first and second transaction packages; and
accessing, by the settlement coordinator after receiving the first and second transaction requests, the first blockchain and the second blockchain to transfer effect the first sub-transaction on the first blockchain and to effect the second sub-transaction on the second blockchain to thereby accomplish the first transaction.
2. The method of claim 1 , wherein each of the first and second transaction package comprise a public address of the corresponding counterparty, a public address for such counterparty, and an amount of the corresponding cryptocurrency.
3. The method of claim 1 , wherein each of the first and second transaction package is signed using a key associated with the corresponding counterparty prior to being received by the settlement coordinator.
4. The method of claim 3 , wherein the settlement coordinator forwards the transaction packages to the corresponding blockchains without modification.
5. The method of claim 4 , wherein the settlement coordinator connects to an application programming interface (API) of the first blockchain and the second blockchain.
6. The method of claim 5 further comprising:
confirming, by the settlement coordinator, completion of the transfer based on a number of block confirmations from each of the first blockchain and the second blockchain being above a pre-defined number.
7. The method of claim 6 further comprising:
transmitting, by the settlement coordinator after confirming completion of the transfer, a confirmation package to each of the first counterparty and the second counterparty indicating successful completion of the transfer.
8. A system comprising:
at least one data processor; and
memory storing instructions which, when executed by at least one computing device, result in operations comprising:
monitoring, by an off-chain transaction manager, a plurality of computer-based transaction requests facilitated by each of a plurality of custodians, a first transaction request of the plurality of transaction requests specifying a transfer of an amount of cryptocurrency of a first cryptocurrency type by a first counterparty to a second counterparty in exchange for an amount of cryptocurrency of a second, different, cryptocurrency type, wherein the first cryptocurrency type is traded on a first blockchain using a first protocol and the second cryptocurrency type is traded on a second blockchain using a second protocol that is different from the first protocol;
initiating, by the off-chain transaction manager and at a pre-defined time or interval, a first request for settlement of the first transaction by the first counterparty, the first request for settlement comprising a first transaction package encapsulating instructions to effect a first sub-transaction transferring the cryptocurrency of the first cryptocurrency type from the first counterparty to the second counterparty;
receiving user-generated input in response to the first request for settlement approving the first request for settlement, the approving comprising retrieving a first encryption key associated with the first counterparty and the first cryptocurrency type from a remote computer-based wallet and receiving user-generated input via a graphical user interface signing the first encryption key;
initiating, by the off-chain transaction manager and at the pre-defined time or interval, a second request for settlement of the first transaction by the second counterparty, the second request for settlement comprising a second transaction package encapsulating instructions to effect a second sub-transaction transferring the cryptocurrency of the second type from the second counterparty to the first counterparty;
receiving user-generated input in response to the second request for settlement approving the second request for settlement, the approving comprising retrieving a second encryption key associated with the second counterparty and the second cryptocurrency type from a remote computer-based wallet and receiving user-generated input via a graphical user interface signing the second encryption key;
asynchronously receiving, from the off-chain transaction manager and by an offchain settlement coordinator, over at least one computing network, the first and second transaction packages; and
accessing, by the settlement coordinator after receiving the first and second transaction requests, the first blockchain and the second blockchain to transfer effect the first sub-transaction on the first blockchain and to effect the second sub-transaction on the second blockchain to thereby accomplish the first transaction.
9. The system of claim 8 , wherein each transaction of the first and second transaction package comprise a public address of the corresponding counterparty, a public address for such counterparty, and an amount of the corresponding cryptocurrency.
10. The system of claim 8 , wherein each of the first and second transaction package is signed using a key associated with the corresponding counterparty prior to being received by the settlement coordinator.
11. The system of claim 10 , wherein the settlement coordinator forwards the transaction packages to the corresponding blockchains without modification.
12. The system of claim 11 , wherein the settlement coordinator connects to an application programming interface (API) of the first blockchain and the second blockchain.
13. The system of claim 12 , wherein the operations further comprise:
confirming, by the settlement coordinator, completion of the transfer based on a number of block confirmations from each of the first blockchain and the second blockchain being above a pre-defined number.
14. The system of claim 13 , wherein the operations further comprise:
transmitting, by the settlement coordinator after confirming completion of the transfer, a confirmation package to each of the first counterparty and the second counterparty indicating successful completion of the transfer.