How to attract institutional investors to blockchain?

Le'ts figure out why blockchain needs the institutional investors and how to attract them
14 November 2017   4792

Why does blockchain need the institutional investors?

Despite that we all know at cryptocurrency industry is build on the basis of 100% decentralization, in order to create a decentralized infrastructure blockchain requires trillions of dollars. Most of the money is concentrated in the hands of institutional investors, and as a community, blockchain related companies must develop solutions and technical products to connect the fiat money and the crypto industry, thereby obtaining the necessary capital. Community has to develop own vision for a decentralized future. CyberTrust's Global Crypto Notes (GCN) is a key component that facilitates the adoption by large institutional investors of the crypto industry.

Demand for cryptocurrencies on the part of institutional investors continues to far outstrip supply. Given the still low levels of penetration and extremely limited supply, there remains enormous potential for continued exponential growth over the next five years. What is needed is a more flexible supply. Our new platform is designed to address this market demand. This service will help to remove a number of key problems preventing institutional investors from taking full advantage of the cryptocurrency revolution. Moreover, by making securitized crypto more accessible, they will also provide the basis for a wide range of new derivative products such as 3x long BTC. We anticipate significant demand for these derivatives once they become available.
 

Evgeny Xata

CEO, CyberTrust

What is CyberTrust?

CyberTrust is a financial services company that provides a traditional investment tool - Global Crypto Notes - which is recognized and audited. Institutional investors will be able to use it for buying, selling, short positions in the market of crypto-currencies, and also for creating derivative assets. CyberTrust provides services for trading, research and asset management for institutional investors.

What is Global Crypto Notes?

CyberTrust's Global Crypto Notes (GCN) is a traditional investment vehicle. GCNs will be fully titled and auditable in collaboration with Ernst & Young as an auditor

It should be noted that GCN is not similar to ETF, the goal of which is small investors, GCN face major regulatory barriers. Instead, they are designed for institutional and to some extent accredited investors.

GCN provides institutional investors with the elements they need:

  • ownership,
  • tax transparency,
  • clearing and settlement,
  • restitution through the courts.

All these elements should stimulate the acceleration of adoption.

Unlike the existing Grayscale fund, CyberTrust GCN has no limitations. And again, unlike Grayscale, GCNs are not limited to Bitcoin only.

Given the long list of tokens on offer, it’s critical to differentiate yourself by offering a clear value proposition. This token stands out in the sense that its value has a clear benchmark, rather than being just a matter of speculation. One CABS token permits its holder to securitize one BTC, and for that service the current market price is about $1800. When you compare this to our price of roughly $150, the arbitrage potential is pretty obvious.
 

Scott Freeman

Head of Trading, CyberTrust

The availability and security of using crypto currency allows the creation of new derivative products. This, in turn, will trigger the demand for these safe assets.

How does it works?

Crypto currency is stored in a secure offline storehouse with protected property rights. The repository is located in a hyper-protected data silo in Switzerland. All funds raised through the CyberTrust platform will be subject to anti-money laundering. Institutional investors can be sure that their funds are not obtained by criminal means. When withdrawing funds, the investor can receive them in the currency in which they invested.

Sale terms

The new CyberTrust tokens will be named CABS. It will use the Ethereum blockchain and will be listed on major cryptocoin exchanges. The closed round was held from 30 October to 10 November, 2017. The team was able to rise $11M. The pre-ICO start date is now set for 27 November 2017 at 13:00 UTC, whilst the ICO start date is set for 5 December at 13:00 UTC. 600,000 tokens are to be sold in total at a base price of 0.6 ether per token. Accepted currencies are:

  • Bitcoin
  • Ethereum
  • Bitcoin Cash
  • Ethereum Classic
  • USD Tether
  • Swiss Francs
  • Euros

Learn more

If you are interested in CyberTrust project, feel free to check these resources to learn more:

  • Whitepaper
  • Website
  • Telegram
  • Facebook
  • Twitter
  • Reddit
  • Steemit 

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Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   189

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.
 

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.