Page 9 - Project Khoka 2

Figure 1: Conceptual design of the Project Khokha 2 proof-of-concept
EXECUTIVE SUMMARY
DLT network wCBDC Zone
Khokha Hub
Technology
R3 Corda
BitFair (A Cosmos implementation)
Description
The overall network managing wholesale central bank money (wCBDC) on DLT, including the (i) Admin Console; (ii) Engine; and (iii) DLT network.
The Khokha Hub distributed ledger technology (DLT) network enabled the issuance
of, and trade in, debenture tokens. The final design meant that it fulfilled the role of a trading platform, (de)centralised securities depository, securities settlement system and elements of a payment system. The Khokha Hub served as a token trading platform (TTP) enabling interoperability with other DLT platforms such as the wCBDC Zone through a software bridge.
Ownership, Governance & Operator
SARB (central)
Software bridge
Envisioned to be a consortium of market participants (decentralised) in the proof-of- concept (POC), with the Khokha Council serving as the governance structure. Any market participant may propose busines logic (modules) which the Councile votes on to determine whether it is implemented on the platform.
* Theoretically any of the market participants could establish such a DLT-based market infrastructure under a more centralised structure.
Component
wCBDC DLT network
Prototype brief
Wholesale central bank digital central bank (wCBDC)
Tokens
wCBDC
Compenent/ module development & oversight
South African Reserve Bank (SARB)
Access
Settlement banks
Description
wCBDC tokens are used to purchase debenture tokens in the primary market.
Debenture token modulenetwork
Khokha Token module
Debenture maturity engine (module)
Decentralised exchange module
Debentures on DLT
Wholesale digital settlement token (wToken)
Debentures on DLT
Debentures on DLT
Debenture token (a security token)
Khokha Token
Fractionalised Debt at Maturity (FDM) token
SARB’s Financial Markets Department (FMD)
Consortium of central banks
FMD
Debentura Secondary market participant (could be anyone) es on DLT
Debenture buyers (commercial banks)
Debenture buyers (commercial banks)
Debenture buyers (commercial banks)
Debenture buyers (commercial banks)
Debenture tokens are issued in the primary market.
Khokha Tokens are used to purchase debentures in the secondary market. The Khokha Token is a commercial bank settlement asset/ token.
Discharges debenture maturity obligations
Enabling trade in the secondary market.
PROJECT KHOKHA 2 9