Reimagining Capital Markets with Metamask Institutional - TOKEN2049 Singapore 2022

hi Singapore how are you doing so I'm returning to Singapore after nine years and I used to work here so it's incredibly exciting to come back and talk about reimagining Capital markets because um I've worked in capital markets before that's my former career and two-thirds of it was actually in Singapore so a lot of what has shaped my thinking around Capital markets has been thanks to my time here so I'm really excited to be back um so um just by way of introduction I run growth and Partnerships for metamask institutional this is a different product line within the family of metamask wallets and it is geared towards connecting all organizations on the planet to web3 so I'm going to borrow Adam Smith's quote I think he known as the father of modern economics probably described Capital markets as the free flow of money and the exchange of goods between individuals and organizations and this essentially helps entrepreneurs bring their ideas to life it helps small businesses become large corporations and it helps folks like you and me to become investors and to be able to invest in our futures okay but as you might know today Capital markets is anything but this it is slow and expensive um there have been Decades of innovation that has been done within Legacy Traditional Finance that has not been built to work together and so you have intermediaries and you have several steps in the trade life cycle that makes it expensive and slow furthermore this is now concentrated among a few players such as the gentleman who are sitting here before us there's maybe 20 Global institutions that are the main purveyors of risk today and capital and so one would think that when you have large concentration of players that you would have economies of scale but that's not true at all over the last decade you've seen these large investment Banks voluntarily reduce their client base and so Capital markets is not available to the long tail of organizations today and so this is now resulted in an inequitable World economic order and don't take my word for it if you look at the statistics in BLS bis sorry the global liquidity indicators show that while you have a large demand from developing countries for foreign Capital only a small fraction of that is fulfilled by cross-border claims and furthermore any guesses for guessing who is the largest borrower of US dollars today any guesses it's the U.S government and so Capital markets is extremely efficient for the largest participants but does not translate into the rest of the world and so let me paint a picture of how we think about reimagining Capital markets at metamask institutional so now we have a technology that is composable and open source we're able to be completely permissionless so anyone can participate and furthermore you have digital Bearer properties that can create digital scarcity and so by combining these properties what you find is you are finding a global Capital markets system any borrower any lender can participate at the global scale and furthermore some of the things that we are doing close work with with many of our partners is thinking about a concept of universally acknowledged credentials that can prove my investor suitability to invest in an asset or to prove my credit worthiness as a borrower and this creates then an instant Capital markets framework to be able to access markets with and furthermore as if if you've been paying close attention to what's happening in D5 you are seeing a pace of innovation that no single entity or a collective of companies can match and so we've seen 17 000 dapps be developed using this open source composable technology now let's talk about C5 for a second I have many of my friends from my former life who are attracted to the promise of C5 they find their skill sets and their relationships quite easily transferable to C5 I tell them to resist the urge because what we see happen in C5 is that you are seeing the same structures emerge you've got the same lengthy onboarding process that is not transferable and you have the same liquidities of of um as our same centers of liquidity be created within different centers globally now what we have sorry I'll go back what we do see different in C5 is that you are seeing the same counterparty risks now being associated with newer entities that haven't been battle tested and are sometimes not as regulated as might seem but they'll still say well that's what it takes to get institutions into D5 it has to sound and look like what institutions are used to I'm sure absolutely that if your day job is to find Arbitrage opportunities between two centralized exchanges or if you are very good at being able to put on a basis trade between C5 exchanges and D5 all the power to you that's great we love you as a as a customer segment you you are battle testing this infrastructure as we build um you have been our earliest adopters and you represent an important segment within this ecosystem foreign but I struggle to find that by having speculative Capital into defy or C5 that you are going to be able to convince institutions that have no mandate whatsoever to put on delta neutral strategies suddenly understand the promise of web3 and any organization that wants to get involved is doing a great disservice to themselves by not actually climbing the Steep learning curve that it takes to understand their place within this ecosystem and I also tell service providers that are building for D5 that it's not the same institution showing up it's not the same institutions from traditional Finance it's not even the same institutions in C5 that are showing up on metamask institutional so you have to think about new business models to provide what organizations require when they are participating in web3 and so every layer of financial systems are being innovated on right now on web3 Beyond Capital markets when you realize that this technology is combining identity content and things of value to interact with the same settlement layer things start looking a lot more multi-dimensional we have corporations on metamask institutional that realize that the way that they evolve with their audiences is using web3 tokens the way that they engage with their friends and and frankly keep a record of is through web3 tokens and they use this on MMI now if I made any prediction today about what the use case would be in terms of web 3 this would not age well so I'm not going to say anything what I can say is that metamask institutional is here to empower organizations to discover and derive full utility in web3 foreign so here in this video we show how you are able to access and track your web3 portfolio but we combine that with a connection to your custodial wallet so you can see that you can interact with your custodial wallet address within the familiar browser extension of metamask and so we think deeply about how we can provide unrivaled access in a compliant way with the necessary controls in this video we show how you can go connect your browser extension wallet to any dap initiate a transaction but then when you sign you're not actually settling the trade instead you settle the trade at the custodial layer so at the end of the day we provide you all of web 3 across multiple chains across multiple custodians and we give you a dashboard to be able to track your portfolio and analyze your transactions foreign of what the metamask institutional team has accomplished so far but we would not have gotten there without our partners a huge shout out to Credo Cactus custody and bitco they were our initial Partners when launched last year we are also ramping up with our newer custodians hex Trust parfine nose is safe as well as gk8 foreign to expand That Base so I'm really happy to be able to announce four new custodians on metamask institutional we are partnering with Kobo with floating Point group based in the US propine which is a fully licensed Mas licensed custodian based in Singapore as well as liminal built on a multi-custer multi-custodial stack of HSM and MPC for exchanges and fintech providers so right now we have 11 custodians on our platform five of which are based in Asia because that's what our customers are asking us for not only that in combination we now provide access to web 3 for over 1800 organizations globally and so we continue to believe that depending upon what your use cases as an organization we will have a custodial stack that provides the governance and the operational controls that match your specific use case how to find us you can go to our landing page metamask.io under institutions we have all the information over there you can also reach out to us at the booth um you can also come say hi you can also email me directly I'm at MMI underscore sales at consensus.net thank you all for your time [Applause]