Institutional Adoption of Digital Assets - TOKEN2049 Singapore 2022

I hope you all had lunch but you're not sleepy but anyways not a million dollar not a billion dollar the trillion dollar question right now is institutional adoption of digital assets we have been talking it for last five six seven years I remember the times when uh it didn't used to see jackets in a crypto event uh used to see shots flip-flops and if you talk about institution or regulations uh you will be bullied but now we are at the Gateway when the time has come yeah so over the next 10 minutes or 15 minutes I'll walk you through what does it exactly mean when you talk about institutional adoption what are the different aspects custody infrastructure uh open financial services and also give you a peek into an on-chain ecosystem I think I couldn't have asked for a better previous presentation than Oliver's because he talks about regular editions and are you ready regulated and I can tell you uh in this presentation that a hundred percent agree it's not easy if you talk about regulations it has taken us more than four years and we have met some of the pairs who have just done it in one or two months uh so it's a long road ahead but moving forward just to give you a bit of highlight uh we will be talking about two firms on-chain custodian and on-chain digital so a bit of highlights what is on-chen custodian what is on-chain ecosystem uh the team comprises of Da hongfei I think she needs no introduction he was here he's founder of Neo uh ontology so on and so forth uh our stakeholders include Sequoia capital dhbc for soon credible names Partnerships as a custodian house includes IBM HSM infrastructure insured by Lords of London through the broker locked in uh we have NCC group as our audit partners and then comes regulation so when you talk about custody you're talking about three different infrastructures one is technological infrastructure one is regulatory infrastructure one is financial infrastructure what do we mean technology infrastructure and stay with me here because it's gonna get a little bit complicated but very valuable so technological infrastructure basically means a building the ecosystem to encrypt your keys building apis on top of it building white listing mechanism user access management so on and so forth a regulatory infrastructure is what Oliver also touched upon is basically your kyc onboarding your transaction monitoring your AML systems uh your travel rule so on and so forth It's Not Easy it all has to be integrated on your platform and financial infrastructure means that you should be able to basically on a click of a button do your financial reporting export or your transactions uh to an Excel file based on address sorted by asset types and so on and so forth so if you can do all that you basically has a have a platform that can enable institutional adoption by giving them safe keeping of their assets in a very regulated manner again I'll use the term regulated very carefully thanks to our last presentation uh this is the leadership uh myself Chief Operating Officer uh you can read this on the website so I'll not talk too much about it this has been our journey so we are regulated here in Singapore but it's not been an easy Journey as you can see it has taken us more than four years and that's where I agree with Oliver how regulated are you how much effort have you put in to be regulated so this journey has taken us more than four years from incorporation to funding to platform to integration with regulatory tools to IBM Contracting to Awards so on and so forth that has been our journey so far and when we talk about custody these were the three pillars that we were trying to build it on a and uncompromisable is security B transparency what do we mean by that you should be able to always check and see what assets are you holding where are you holding a platform where you can just log in and see that and see convenience what is convenience in order for you to check your assets if you have to call 10 relationship managers two private Bankers that is not convenience so you should be easily able to log in and check it on your platform so these three pillars were the pillars of a platform that we created we call it safe platform which is our own in-house technological proprietary and this slide I think if out of all the presentation you take away something I would say it's this slide it is the Crux of everything so what is on-chain custodian what is on chain digital what is on chain ecosystem Yeah so basically on-chin custodian is a regulated custody house it has built all the infrastructure we talked about technological infrastructure regulatory infrastructure Financial infrastructure on top of that it has built mechanisms like apis or anybody to plug and use this in the back end on top of that it has built white listing mechanism user access management what is user access management mean if you're a corporate and if you want to have different rights for different users in your cooperation for example somebody can initiate a transaction uh but it needs to be approved by two other people and somebody can withdraw but somebody cannot withdraw you can do it inside the platform in a very seamless mechanism different type of wallet services that onshine custodian provides is warm bullets cold wallets warm wallets uh is in partnership with IBM HSM solution we'll talk about it a little bit later gold wallet is an air gap solution where it's a multi-six solution two out of three four out of five where each different Hardware device is stored in a different vault in different location so that kind of security is there but then the question is why do you need a bomb wallet cold wallet is secure but it's not very efficient for every withdrawal you have to literally take the physical device plug it into your system and then basically be able to conduct a transaction now imagine if you're an exchange or a payment Gateway who does like thousands of transactions every minute that will not be very efficient for you so bomb wallet is something where you can just use apis to access your wallets but the private keys will be encrypted by fips140 by IBM and so on so I'll keep it simple on chin custodian a regulated platform custodian safe keeping of assets so on and so forth but how it all works when we talk about institutional adoption we are not just talking about custody custody becomes the very base of what we call open finance services or transaction so just to give an example when you're holding 1000 10 000 Bitcoins or any of the clients asset a natural tendency that a client will have is can you help me generate some yield on it or can you help me use this as a collateral to borrow or can you help me sell more or buy more can you help me stake it and so on and so forth so the Natural Evolution or cycle of it uh is completed through on-chain digital so engine digital is an asset management firm all in digital assets crypto it does lending and borrowing it has Structured Products OTC is taking what have you yeah but I'll talk about onshine digital a little later we'll finish the on-chen custodian episode first uh this is a look of our safe platform very simple very intuitive the whole idea is that it's no rocket science just like you log into your internet banking you should be able to log in check all your assets and their equivalent dollar value and so on uh this is a bit of peek into our cold wallet solution so when we talk about cold wallet we have two solutions co-managed and full custody full custody means that we do the entire custody of Hardware Keys cold wallets and code managed means that half of the keys are held by us and half by clients it's like a nuclear bunker scenario where basically you co-sign and put the ledgers together to sign a transaction so very safe this is warm wallet it also has a feature called HD wallet HD wallet means that basically hierarchical deterministic wallet in simple terms within a warm wallet or within a count or a collective wallet if you have if you for example a fund and you want to segregate all the funds of your clients you can create as many sub wallets as you want up to million 10 million even more so that infrastructure has also been created uh also we talked about HSM so one thing is that we are HSM level four just to give you a bit of context level five is military grade ordinary wallets are level two so this is pretty much of custody I'll not talk more about it I think we all got a bit of background about it but I want to touch a little bit about different aspect of institutional adoption right so we talk about institutional adoption first part safekeeping custody second part infrastructure third part and final part investing how do you invest what do you have around it so I I'll touch very briefly upon few things firstly Asset Management products so these are simple interest accounts but for digital assets for crypto you can literally put your Bitcoins ethereum stablecoin and earn interest on it based on how long you put it inside this is a sample on how we basically roll out our asset management product under on chain digital uh yields are higher but they are safe because we've all seen in the crypto winter and bear Market that what all can happen so we only take Market neutral strategy Arbitrage high frequency trading so on and so forth uh we try to avoid investing in D5 for obvious reasons that most of you folks will know and these are more complex products so this is more from traditional Finance these are structured product so some of these Structured Products will be principle protected some of them not uh some of them So Different Strokes for different folks right so I'll give you an example so one of this can be European style shock fin project products or American style so these are for range bound traders who anticipate in the next 30 days 10 days I expect bitcoin price to be between this range and if they're right they're on a high yield let's say 19 to 23 percent uh if they are out of this bound they're on a lower yield so these are structured customized bespoke products uh for sophisticated investors and so on uh same dual currency product for currency agnostic investors who just care about yield they don't care about underlying asset so they don't care whether they get paid back in BTC or in usdt or any other asset classes as long as the yield is high they're happy to take it there is a product for that also uh I'll not talk about all the products but we have a booth here K1 visit us happy to talk about all kinds of Structured Products Asset Management products uh Prime brokerage and so on but I just wanted to give you a bit of flavor of what we are building here and how we are enabling institutional adoption because when we talk about traditional Finance clients this is what they're looking for something more sophisticated tailor-made which is not there in the market so together this makes the entire on-chain ecosystem launching custodian a regulated custodian Hound on chain digital asset management firm uh Prime brokerage firms taking and so on uh and in between these two there are some things that I didn't even talk about which is financial reporting events management liquidity providing escrow OTC there's cramp on ramp off so on and so forth so as you can see it's a end-to-end complete solution for digital adoption it was not built overnight it was not built in a week or month it took four or five years and it's still building up because crypto is fast some of our Partnerships uh we talked about IBM Merkel science they also have a booth here uh but it's not it's inclusive of but not limited to these Partners uh so in finance there is a saying your network is your net worth and over the last four or five years we were happy to create a strong network of Partners who enable us to do and provide all these services in a very seamless way also thanks to our sister companies our founder and this ecosystem we also have a huge team of technological Engineers which can help us enable and customize anything we want so just to sum it up we talked about custody and I was reading a very interesting article it said the city is not what crypto wants but what crypto needs and I strongly believe it is what crypto needs for institutional adoption because we have reached a billion dollar Mark in 2017. we have reached a trillion dollar Mark in 2021. if you want to go above and beyond institutional adoption is the only way there's no other way and I agree with Oliver regulated institutional adoption is the only way if you want to learn more about us we're a local Singaporean company regulated here in Singapore come to our booth K1 right there we'll be happy to discuss more we are very Pro partnership Pro collaboration we want to enable the fintech ecosystem and we'll be happy to do it with you thank you very much