Capital Efficiency and Counterparty Risk - TOKEN2049 Singapore 2022

actually it's copper not Cooper by the way that's all right well while we're all kind of settling down and before I kind of start my uh presentation who here and it's like 2022 right as I'm gonna feel dumb asking this question but who has lost funds leaving it on in exchanges or lending platforms here any any show of hands yeah yeah you too well look I have to admit I lost funds like that as well and I'm the head of APAC for an Institutional crypto custodian and I lost my funds ironic isn't it shame well what if you were managing your friends and Family's money what if you were managing pension money or endowment money are you going to leave your funds on exchanges there's needs to be a revolutionary change in how this crypto infrastructure is being built you see here institutional investors are coming or have already came they're already in this space they see all these companies here they're on Twitter they're on media saying that they own crypto and a lot of them are actually quietly doing this so in order for these institutional investors to come into this crypto industry do we service them with the same crypto infrastructure that has already been presented to them in nutritional Finance you have custodian banks that holds the Securities for investors you have Brokers that provide access to investors into exchanges you have exchanges that matches trades for the investors and you have Clearing Houses that settle the trades between custodian Banks now it took a long many long years and decades for the traditional infrastructure to build this thing out where it has proper segregation of Duties and and lacking conflict of interest you know crypto industry in the beginning didn't have any of that there were no businesses that became the custodians they became the Clearing Houses so it's no fault of them but as these institutional investors are coming into this space don't we need to provide them with a better infrastructure for them to invest in this space in the beginning U.S equities there are about maybe five percent of the people who are investing in institutional investors investigating equities now it's so it's more than 75 percent in crypto they're saying that there's going to be 10 uh in 10 years there's going to be 60 percent of institutional investors uh trading in this industry what we need to revolutionize in this space is bringing this traditional infrastructure into the crypto world but give it a little twist because it's a blockchain we we're all revolutionary uh revolutionizing Finance aren't we so this is where copper comes in so copper has created clear loop Clear Loop mitigates counterparty risk and increases Capital efficiency now what do I mean by that if you're leaving funds on exchanges obviously you're going to be exposed for exchange hacks or funds going down you know financial troubles by the exchanges leading for your funds to go missing but what we did at Clear Loop was we created this product where we do a technical integration with the exchanges whereby if you're let's say you're going to trade 10 Bitcoins we'll lock those 10 Bitcoins inside your wallet and we call it delegation but we delegate or send information to The Exchange saying that this client is going to trade 10 Bitcoins because it's locked inside Copper's wallet then the exchanges will acknowledge that and allow the traders to trade based on that balance and again this is a virtual balance it is not an actual fund and when the client is ready to settle the trades because the exchanges leave funds with us we can settle the trades inside copper now we're removing the whole blockchain element out of this so it's it increasingly uh improves Capital efficiency you don't have to wait for Network validations you don't have to pay for gas fees and you could do all this delegation within milliseconds and most importantly of all we mitigate the counterpi risk because we're not leaving funds on the exchange doesn't that sound pretty wonderful but by means we're not completely uh full on ready with this product at I mean it has been launched but we're trying to get more and more exchanges onto this platform let me give you an example recently we had an exchange that was connected to our clear Loop ecosystem I promoted this exchange heavily and I had a lot of clients uh stake assets Into The Exchange Trade on this exchange through our clue Loop solution but when this exchange had financial troubles they had suspended withdrawals from all the clients so if you were the client leaving funds on that exchange then you wouldn't be able to get your funds back but because our clients our institutional investors were using clear Loop they were able to unlock those funds and move it to another exchange for the purpose of trading this shows how powerful this tool is because it's completely mitigating the counterpart risk that the clients are taking on the exchange the client's funds are set within the custodial wallets and being able to trade safely without having funds touching those exchange wallets and this product the ethos goes across all our product lines if you're trading OTC trades with Brokers we have the same concept you can settle the trades inside copper because we have the OTC Brokers funds within our platform if you want to do staking we have validator nodes that we run so you can stake directly from your cold wallets into these validator nodes and earn the yields that will go into your wallet a lot of clients now want to stake assets into a smart contracts for you know D5 platforms we can use we have a browser extension that allows your custodial wallet to directly connect to the D5 smart contracts so this removes the whole element of moving funds to a metamask or what while they connect and then using the the those wallets to connect to those D5 platforms it goes direct from your custodial wallets so I've been in an industry in a financial industry for about 20 years you know I worked in a proprietary investment teams in investment Banks I worked in a hedge fund for a long periods of times and when I came across this platform called copper I was immediately hooked I knew this is way I knew this was a Gateway for trading crypto in a safe and secure Manner and I think copper is Paving the way and for all the exchanges the OTC Brokers and any platforms that are providing access to institutional investors I welcome you to the clear Loop ecosystem thank you [Music] all right I was gonna I was gonna do some q a if you don't mind immediately cut my mic off um so I do have like about five minutes left so I was wondering um since it's a small group um I'll happy to take any questions if you have any yes sir yeah okay so this is a this is a different um security architecture that you probably uh some people are not used to uh we uh for our wallets um you know the concept of private keys and if you don't own your private Keys you don't own your assets but instead of private Keys we replace them with these things called shards using MPC technology so MPC Technologies multi-party computation it's a type of cryptography that was invented back in the 70s uh we repurposed this so we can replace private Keys uh to these shards and what these shards would do is that uh based on this cryptography it makes it difficult for one hacker to hack into one Shard and get the information for the other shards so that it can piece it together and with this we can also scale because if you think about multi-sig that's usually used in commonly in this space um there's a you have to pay gas fees in order to create a wallet and there's scalable issues because you can't make this multi-safe for every single blockchain that's out there so we use this MPC technology so that we can scale we can we have about 50 plus blockchain layers that we support and NPC can and can uh scale that and with NPC there's as I mentioned there's three shards one will be held with a client one with copper and one with the trusted third party of a of the client and whenever you need to create a wallet you go on a like a video ceremony where you have all three parties uh to create the wallet but on the day-to-day activity this trusted third party will take that chart and put in some private Vault so you don't have to interact with them because it's always two out of three shards now this goes into uh to answering your question so what if copper goes bankrupt or Copper's platform goes down then because it's two out of three the client and The Trusted third party can recover the assets for the client so you don't have to wait for an administrator to come in do a whole bankruptcy procedure to distribute funds uh to the client now so basically this this allows us on a legal and we do have legal opinions on this that we're not uh it's not on our balance sheet so basically it's not part of our bankruptcy estate um so going back to that so let's say the client loses their Shard or gets compromised then copper and The Trusted third party uh can create a new wallet and then move the assets uh into another platform so therefore we're removing that single point of failure risk so that no one party is responsible for the entirety of the client's assets any other questions all right great well thank you very much for your time