Overview
Supporting Infrastructure
A Hybrid System: Execution Meets Delivery
Initiativ is built on a hybrid infrastructure that connects automated digital execution with secure delivery mechanisms tied to compliance systems.
When you place a trade through Initiativ, you're not buying a symbolic asset or financial derivative. You’re purchasing the actual compliance unit, such as a European Union Allowance (EUA), held in a national registry. What shows in your account reflects what’s held — verifiably — on your behalf.
This ensures full transparency, no synthetic exposure, and no dependence on third-party intermediaries.
How the System Is Structured
Initiativ’s infrastructure has two tightly integrated components:
1. Digital Execution Layer
This is where trades are created, matched, and settled.
It runs on a private blockchain — a secure, permissioned system that records every order, match, and balance update in a transparent and tamper-proof way.
We use this layer to:
Enforce matching logic and settlement rules automatically
Maintain live user balances
Record all transactions immutably
Mirror asset ownership through a system called a shadow registry
Shadow Registry: An internal ledger that tracks who owns what, inside the system. It reflects the real-world registry holdings but operates digitally to allow faster execution and transparency.
Once an order is matched on the blockchain, the digital system sends instructions to finalize the transfer via the second layer.
2. Delivery Layer
This is where assets are transferred between registry and trust accounts.
It is composed of:
A fiduciary trust (or fiducie, in French) that manages all user-deposited euros
A registry account that holds the actual compliance instruments (like EUAs)
Fiduciary Trust: A legal structure that holds client funds or assets separately from the company’s operating funds. It ensures Initiativ never mixes user deposits with its own capital and protects client assets from any corporate risk.
Registry Account: A system used by national authorities (like the EU) to manage and track official ownership of emission permits. Every EUA or similar instrument is accounted for at the registry level, and ownership transfers are legally binding.
When a user deposits allowances or funds, the system credits their account digitally. When they withdraw or transfer, the system burns the digital equivalent and moves the actual asset from one account to another.
Example Workflow
A user deposits 1,000 EUAs into Initiativ’s registry account
The blockchain mints 1,000 EUA units and credits the user's account
The user places a trade that is matched on-chain
The system triggers an automated API call to move the asset from Initiativ’s registry account to the counterparty
The trade is marked as settled, and both users’ balances are updated
Because the digital system only mints what’s physically present — and burns units upon delivery — the platform always remains in sync with the real world.
Mint and Burn Logic
# When a user deposits EUAs into the registry account
def mint_permit(user_id, quantity):
if registry.received(user_id, quantity):
blockchain.ledger[user_id]["EUA"] += quantity
logger.record("MINT", user_id, quantity)
# When a user withdraws EUAs to their own registry account
def burn_permit(user_id, quantity):
if blockchain.ledger[user_id]["EUA"] >= quantity:
registry.transfer_to(user_id, quantity)
blockchain.ledger[user_id]["EUA"] -= quantity
logger.record("BURN", user_id, quantity)
This ensures the digital ledger never exceeds what is actually available, protecting users and preserving systemic integrity.
Transparency and Security
Because every transaction, match, and balance adjustment is written directly to the blockchain, the entire platform is auditable by design. There’s no hidden ledger, no shadow processes, and no manual intervention. Auditors, regulators, and clients can all verify what happened, when, and how — without needing to trust a single intermediary.
This blockchain-based audit trail functions as a digital extension of the official registry — without ever replacing it.
System Diagram
+-----------------------------+
| Delivery Layer |
|-----------------------------|
| Fiduciary Trust (EUR) |
| National Registry (EUAs) |
+-----------------------------+
↑
| Automated API Call
↓
+---------------------------------------+
| Digital Execution Layer |
|---------------------------------------|
| Private Blockchain |
| Matching Engine |
| Shadow Registry (Internal Ownership) |
+---------------------------------------+
↑
| User Action (UI/API)
↓
+-----------------------------+
| User Interface |
|-----------------------------|
| Dashboard |
| API Access |
+-----------------------------+
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