Using our proprietary technology platform, we provide real-time Proof of Reserves reporting, issued under CPA standards, available on demand to your customers.
The Network Firm’s Real-Time Reserves service leverages LedgerLens, The Network Firm's proprietary attest technology, to produce CPA attestation reports as frequently as every 30 seconds.
Using LedgerLens, The Network Firm provides entities such as issuers of stablecoins, asset-backed tokens, and crypto-backed financial products to provide trust and transparency to their clients by providing real-time data related to the liabilities issued, and assets used to collateralize those liabilities, all attested to by a CPA firm. LedgerLens connects to the relevant blockchains and financial institutions via API and other methods to provide up-to-date information to your constituents. Effectively, TNF's LedgerLens reduces the reporting frequency from every 30 days to every 30 seconds. This is what the future of assurance looks like.
The Network Firm delivers the information via embeddable widget with reports available “on demand” at the click of a button on the client’s website. Additionally, each customer has access to a “backend” admin panel to see historical information, error logs, and more.
What does the output look like?
The Network Firm delivers the following outputs to our clients for our Real-Time Reserves Service.
1. Embeddable Real-Time Reporting Widget
TNF delivers a widget that is embeddable onto your public website, highlighting the details related to to supported crypto instrument. Importantly, the widget hosts a Download Report Button, enabling users to download a "fresh" CPA attestation report as frequently as every 30 seconds. Additionally, historical reports are made available for download on the widget for your users.
2. Real-Time Attestation Reports under CPA Standards
On the Embeddable Real-Time Reporting Widget, the attestation report completed by TNF is available for download by your users. The attestation report is issued under standards promulgated by the American Institute of Certified Public Accountants (AICPA) using either the Examination or Agreed-Upon Procedures attestation vehicle.
3. Administrative 'Control Panel'
LedgerLens Client admins are able to access the "backend" control panel, that provides insights in the health of the system, information collected, logs, and more.
Example of Live Real-Time Reserve Clients
FAQ
What types of digital asset companies can use Real-Time Reserves?
Essentially, any type of Issuer who issues a token that is holding a real-world asset in reserve to "back" the token. Additionally, ETF issuers can benefit from Real-Time Reserves.
Stablecoins: whereby a token is issued on a blockchain, pegged to a fiat currency, and is backed by assets held in reserve by the issuer’s custodian on behalf of token holders.
Asset-backed Tokens: whereby a token is issued on a blockchain, and is pegged another type of instrument, such as a carbon-credit or ounce of gold, and is backed by assets held in reserve by the issuer’s custodian on behalf of token holders.
Exchange Traded Products: whereby a security instrument is issued, and is backed by assets held in reserve by the issuer’s custodian on behalf of token holders.
Can I pair Real-Time Reserves with your On-Chain Proof of Reserves Service?
Yes! In fact, it is encouraged to provide real-time transparency to your "traditional" users expecting a CPA attestation, along with crypto-native users expecting an On Chain Proof of Reserves!
How long does it take to integration and begin reporting with Real-Time Reserves?
The standard integration timeline is 6 to 8 weeksonce development starts. Development start times are dependent on scoping and client onboarding processes.
How do I embed the widget on my website?
Embedding the widget onto your website is as simple as inserting a simple line of code within your website. Here is the step-by-step:
Insert the following HTML code snippet in the section of your website where you would like to display the attestation reporting widget.
src: property should follow the URL pattern noted above
version: relates to the widget version # (i.e. v1, v2, etc)
client: your client or product name being supported by LedgerLens
width/height: specify the widget size on your page
Test the widget on your site
What is the cost of the service?
The cost includes a 1-time onboarding fee and an ongoing monthly SaaS fee. For 90% of clients, costs fall within the following ranges.
One-Time Onboarding Fee: $6,000 to $25,000
To integrate all sources, test all sources, build the control panel, build the public-facing dashboard, complete the required audit documentation.
Monthly License Fee: $5,000 to $15,000+
Costs to maintain the system, test all sources periodically, complete bi-monthly audit documentation, and compensate for risk.
What drives the range on costs?
Every Real-Time Reserve engagement is unique. These unique characteristics that drive the range on costs are:
Number of Integrations: which entails how many banks, blockchains, and other data sources we have to integate with. Additionally, we consider how the data can be extract (i.e. API, daily statements, etc). For example, a simple stablecoin may only have 2 integrations (1 bank and 1 blockchain for example.). On the flipside, an exchange-traded product may have 20+ integrations. These 2 different examples are significantly different in terms of effort of integration and continued maintenance. Therefore, if you are closer to a “simple stablecoin,” you would be closer to the lower end of the band of integration and license costs. If you are closer to the “complex ETF,” you would be closer higher end of the band for integration and license costs.
Assets Under Attest: The largest the AuA figure, the higher the risk profile as the attestation provider.
Complexity: The other main variable is overall complexity. For example, if we have to read DeFi information from different protocols, or account for decays other unique calculations, the effort increases and so does the associated cost to integrate. Additionally, if we have to host new or expensive to run blockchains, these are covered by the integration and license costs.
Is it really “real-time”?
Technically, we are taking holistic “snapshots” of all relevant information at an extremely frequent cadence, giving the “illusion” of real-time. We call time between snapshot the reporting interval.
The reporting interval is dependent on the least available data source. Assuming all of the token, bank, or other information is readily available via API or similar data extraction method, we can reduce the reporting interval to every 30 seconds, compared to every 30 days for traditional “static” stablecoin attestations! However, if a data source is restricted to providing data once an hour, then our reporting interval would be increased to 1 hour (because we are bound by the least available data source).
Most Real-Time Reserve installations usually have a reporting interval between every 30 seconds and daily.
We issued CPA attestation reports are issued at each reporting interval.
Will this fulfill my regulatory reporting requirements?
As long as your regulator accepts attestation reports under attestation standards promulgated by the AICPA, our solution will fulfill your requirements.
