홍준기_CUMBERLAND
•Download as PPTX, PDF•
2 likes•1,530 views
1. The document discusses trends in the cryptoasset market including the rise of security tokens, investment in infrastructure by venture capital funds, and new institutional investors like university endowments. 2. It outlines five pillars of institutionalization for cryptoassets: custody solutions, research and valuation, lending markets, market depth and liquidity, and legal/regulatory clarity. 3. Cumberland is introduced as the cryptoasset subsidiary of principal trading firm DRW, providing two-sided liquidity, capital efficient transactions, and streamlined trade settlements for institutional investors in over 35 cryptoassets.
Recommended
Recommended
More Related Content
What's hot
What's hot (18)
Similar to 홍준기_CUMBERLAND
Similar to 홍준기_CUMBERLAND (20)
Recently uploaded
Recently uploaded (20)
홍준기_CUMBERLAND
- 2. 2 FROM UTILITY TOKENS TO SECURITY TOKENS • A continuing trend going forward will be the rise of security tokens: tokenizing venture funds, hedge funds, sports teams, art work, bonds, real estate and other assets on a blockchain • May unlock liquidity FUND INVESTMENT IN INFRASTRUCTURE • Development of the infrastructure first before the application • VC funds making investments in protocols (e.g. Hashgraph, Solana, Kadena etc.) © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED 2 Global Trends in Cryptoassets
- 3. 3 NEW CLASSES OF INSTITUTIONAL PARTICIPANTS INVESTING IN CRYPTOASSETS • University endowments and family offices entering the cryptoasset market o American hedge fund Morgan Creek Capital calls this “getting off zero.” o Yale, Harvard, Stanford, Dartmouth, MIT and others © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED 3 Global Trends in Cryptoassets
- 4. 4 FIVE PILLARS OF INSTITUTIONALIZATION 1. Custody solutions 2. Valuation/research 3. Lending market to enable shorting, hedging and two-way flow 4. Depth/liquidity of the market 5. Legal and regulatory clarity © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED 4 Institutionalization of the Cryptoasset Market
- 5. 5 • Global custodians to safeguard cash and securities • Vulnerability to cyberattacks • Fidelity Digital Asset Services LLC • Nomura joined Ledger and Global Advisors to create Komainu • Goldman Sachs & Galaxy Digital • BitGo © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED 5 Custody Solutions of the Cryptoasset Market “There are a lot of investors where custodianship was the final barrier. Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.” - Samani, a managing partner at Multicoin Capital.
- 6. 6 • Short sellers enable the market to function smoothly. In order to short, one needs to borrow • Poloniex (USA) allows lending digital assets to margin traders • Bitbond (Germany) allows Bitcoin lending at 13-20% interest • Coincheck (Japan) was one of the earliest to enable cryptoasset lending • Lending Block allows hedge funds, investors and market makers to borrow cryptoassets • Bitfinex works as an exchange but supports fiat and crypto lending © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED 6 Lending Platforms to Enable Shorting, Hedging and Two-Way Flow
- 7. 7 Cryptoasset Futures Cboe Futures Exchange (CFE) launched bitcoin futures on December 10, 2017; Chicago Mercantile Exchange (CME) followed on December 17, 2017. Other venues continue to launch new cryptoasset-based futures. Bitcoin Futures Markets THE CREATION OF CRYPTOASSET LINKED FUTURES IS POSITIVE FOR THE CRYPTOASSET INDUSTRY: • Benefits from a regulated derivatives market • Involvement of established and regulated exchanges CHALLENGES REMAIN WITH CASH SETTLEMENT MECHANISMS: • Potential for dislocations © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED
- 8. 8 OTC TRADING OF CRYPTOASSETS PROVIDES DEPTH AND LIQUIDITY TO THE MARKET: BY ACCESSING LIQUIDITY ACROSS THE OTC MARKETS AND PLATFORMS, OTC TRADING OFFERS: • A meaningful portion of all cryptoasset market trading volumes occur over-the-counter (OTC), away from platforms • Cumberland trades OTC with counterparties in institutional size • Ability to trade large, institutional size • Competitive all-in pricing • Quick settlement and payment (in most cases less than 24 hours) © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED Depth and Liquidity of the Market
- 9. 9 Platform OTC Principal Risk Taking No Yes Market Making No Yes Price Certainty No Yes Transaction Certainty No Yes Institutional-sized Trading No Yes Custodian Yes No Platform vs. OTC © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED Characteristics of OTC Principal Trading
- 10. 10 REGULATORY GUIDELINES ON CRYPTOASSET PLATFORMS: • Licensing requirements/qualifications • Operating rules and guidelines • Capital control regulations • Regulatory inspections REGULATORY GUIDELINES ON BANKING SERVICES FOR PLATFORMS: • KYC/AML policies and procedures CHALLENGES: • Talent exodus • Lack of liquidity providers • Lack of market makers/OTC principal trading firms • Lack of shorting/hedging instruments • Lack of institutional market © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED Legal and Regulatory Clarity 10
- 12. 12 Pioneering the way in cryptoassets. At Cumberland, we’ve been at the forefront of cryptoasset trading since 2014, giving innovative investors frictionless access to this new world of possibility. © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED About Cumberland 12
- 13. 13 Background Cumberland is the cryptoasset subsidiary of DRW, a diversified principal trading firm with more than 25 years of experience trading in markets around the world. PRINCIPAL TRADING FIRM ROBUST OPERATIONAL INFRASTRUCTURE PERFORMANCE-FOCUSED TECHNOLOGY At the intersection of trading and technology © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED
- 14. 14 Trade the cryptoassets you want, when you want 35+Cryptoassets 500+40+ 24/7Global Trading Countries Unique Market Pairs• Two-sided, institutional-sized liquidity • Capital efficient transactions • Streamlined trade settlements • USD $100K minimum transaction size © 2018 DRW HOLDINGS, LLC ALL RIGHTS RESERVED Background
Editor's Notes
- Institutional investors have long relied on global custodians such as BNY Mellon, JPMorgan, Northern Trust and State Street Corp. to safeguard their cash and securities. Cryptoassets present a new challenge: purely digital assets are vulnerable to cyberattacks and lost funds are difficult to track, much less recover. The lack of custody and other back office services by reputable financial corporates has constrained institutional investment in digital currencies. Fidelity Investments has launched a new company, Fidelity Digital Asset Services LLC, for it’s institutional clients that will trade and store digital assets such as bitcoin. Fidelity Digital Asset offers institutional investors such as hedge funds, pensions and academic organizations, the ability to invest into the cryptoasset market with appropriate institutional grade infrastructure. Fidelity Digital Asset founding head Tom Jessop said that the establishment of the company’s digital asset arm can be considered as the recognition by Fidelity of sufficient demand from institutions for cryptoassets. Within less than 24 hours of it’s launch, Fidelity Digital Asset secured Galaxy Digital, a company that similarly aims to facilitate the institutionalization of the cryptoasset market, as it’s first custody client. In May, investment bank Nomura Holdings inc. joined crypto firms Ledger and Global Advisors to create a custody consortium called Komainu. Just days after Fidelity launched its crypto-centric subsidiary, Goldman Sachs doubled-down on it’s involvement in the industry, joining hands with Galaxy Digital to invest in BitGo, a Palo Alto-based cryptoasset custody startup. BitGo is working to become a qualified custodian in its own right, and to get a state-chartered trust company approved in South Dakota (CEO Mike Belshe interview). “There are a lot of investors where custodianship was the final barrier,” “Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.” - Samani, a managing partner at Multicoin Capital.
- Short sellers enable markets to function smoothly by providing liquidity and also help keep markets in equilibrium. To short, one needs to borrow. Poloniex (USA) Cryptoasset owners can lend digital assets to margin traders on this platform. This way, users are eligible to have 3 different accounts: for exchange, for margin and for lending. Bitbond (Germany) allows Bitcoin lending at 13-20% interest. Still users are able to invest in USD or EUR. The company has now over 150,000 users and $11.000.000 loan volume. Coincheck (Japan) was one of the earliest to enable cryptoasset lending. Lending Block allows hedge funds, investors and market makers to take cryptoasset loans. Bitfinex : This is another platform that works as an exchange but supports fiat and crypto lending. Since 2016, users can borrow or lend their assets to other interested parties.