An increasing amount of enterprise clients have crypto assets on the books for operational expenditure and strategic investments
Problem: the market doesn’t provide a product suite that allows enterprises to deploy these assets with ease.
As we’ve seen, the crypto market is growing rapidly, and increasing number of non-retail users are entering the space. Predominantly these are either:
crypto-native enterprise, utilizing cryptocurrency to conduct their daily operations, or
financial asset management firms looking to invest cryptocurrency effectively.
However, both of these groups face obstacles to high scale growth:
Lack of security, governance and interoperability prevents enterprises from moving more assets on-chain and managing those assets once they are on-chain.
Crypto Banking Challenge: there is no all-in-one product suite that enables crypto-native enterprises to run their daily operations - such as we see in traditional banking. Instead, they are forced to use a mixture of hot and cold wallets, DeFi interfaces, analytics, custodial services, and other extraneous tools which fail to provide an efficient and secure solution.
DeFi Challenge: crypto-native and asset management firms have great a opportunity to deploy idle funds in DeFi to generate interest but have no means of doing so efficiently and securely. Subsequently, DeFi markets are often restricted to a niche set of tech-savvy, retail investors.
The asset management practices and day-to-day operational needs of such enterprises and institutions are different from that of the retail participants. A significantly higher volume and value of assets and more complex organizational structures demand platform-level governance mechanisms, high security, and close management of the asset treasury.
This brings us to a technological problem that is currently holding back such enterprises to efficiently be able to operate within the crypto space - either crypto native enterprises or financial institutions managing crypto assets: the problem of key management.
Centralized and regulated
high security over funds usually including insurance
E.g. USB wallets
high cyber security for assets
low cost and easy to use
There is no incumbent platform that has all the required features. Current solutions have serious limitations around security, accessibility, and governance.