Untapped Opportunity Unlocking the Possibilities of Corporate Crypto - Chris Harmse (BVNK)

good afternoon ladies and gentlemen my name is chris and i'm co-founder and managing director of bvnk and today i'm going to be speaking to you about untapped opportunity unlocking the possibilities of corporate crypto i thought it would be apt to kick it off with a introductory video of who we are and why we launched and and why now [Applause] since 2019 the global digital asset lending market has grown by 894 percent and save one's market cap by two thousand one hundred percent [Applause] but less than two percent of bitcoin is held by public and private companies bbmk is here to change the narrative headquartered in london we offer transparent and efficient digital asset financial services with a single bbnk business account you can manage all audits in a single account powered by institutional grade customers buy sell sell receive digital assets instantly accept same day payment from your customers anywhere in the world an interest on digital assets diversify your investment portfolio via our otc desk for financial service providers bvnk's robust partnership handle helps you onboard all these digital asset services for your clients setting the global standards for digital asset financial services bvnk talk to us today so most financial services innovation has taken place at the periphery not at the core almost all other sectors of the economy have meaningfully transformed over the last 25 years due to technology and innovation whether that's robots packing boxes in an amazon warehouse or tesla self-driving cars we see it all around us yet most legacy core banking functions are still running on outdated infrastructure infrastructure that is layered and centralized not decentralized and accessible and despite these this and despite 10 years of fintech innovation we've largely only seized ui improvements a slight facelift so to speak but that's about to change commerce and financial services are in the era of the on the cusp of an era of accelerating transformation as blockchain networks enable rapid digitization of these core banking functions bitcoin kicked us off in 2009 ethereum took it up a notch in 2014 and since then we've seen wave of the wave of innovation as projects and teams experiment with novel use cases and ideas d5 took this to a whole new level last year whether that's tapping liquidity from an automated market maker or earning yield from an on-chain interest borrower and lending market but despite all the innovation these two systems are running in parallel blockchain systems on the one side and finance traditional financial systems on the other we now see these polls converging and but there's a lack of service providers in this space the store crypto was originally driven by retail adoption and that's pretty important because that turned the financial access market access model on its head retail were now able to have the first right of refusal to a new financial system and this has driven 67 percent of millennials now believing that bitcoin is a better store value than gold and this is important because these millennials and gen xers are going to be the corporate treasurers the politicians and the entrepreneurs of the future they're growing up as a digitally native generation one that understand the intricacies and use cases of blockchain and crypto is no longer just a retail driven or retail driven industry headline after headline survey after survey the institutions are finally here 84 of us and eu investors are now looking for institutional grade digital asset investment products but where does that leave corporates given the cryptos market bifurcation into retail on the one hand and institutional and large corporates on the other we've largely seen a void in the middle specifically the mid-market corporate we need new innovative business models ones that can abstract the complexity of blockchains in crypto away and enable a new user experience one that's running on upgraded legacy updated base layer infrastructure like bvnks and we we experienced this firsthand at our previous crypto payment startup coindirect we were struggling to find credible third-party banking and treasury management providers and despite this despite the lack of service providers to date the corporate interest is real corporates using blockchain are experimenting with use cases of blockchain whether that be smart contract platforms cross-border payments asset management or even just treasury management solutions but when integrating crypto into corporate systems corporates need to ask themselves two questions first question should we take a hands-off approach and just add crypto to our balance sheets accessing new sources of return or do we take a hands-on approach leveraging this innovation platform and integrating crypto into our corporate systems enabling payments yield and other digital asset financial services we've seen global businesses with global footprints see payments being transformed executing payments and settlements quicker faster and with full finality working capital and treasury management strategies have been given a booster shot with meaningful yields and novel hedging solutions and us when we were at coindirect we we took crypto and we integrated into the systems and saw the benefits firsthand we whether that was funding an offshore subsidiary paying employees in jurisdictions other than our home markets putting bitcoin on our ballot sheets or earning interest on idle treasury cash we saw these tangible benefits zooming in we can see how we can use this in in other corporate systems corporates can now accept cryptocurrency payments straight into a merchant account immediately earn interest on this and when it comes time for settlement they can settle anywhere in the world cheaper faster than any of the traditional systems that being said you know in the traditional financial system that would have been trapped cash unavailable cash in transit cash cash that is largely just stuck in the piping and if you look at the main drivers it's rarely been payments requirements that have driven this adoption for multinational businesses we now see that 58 of firms conducting business in multiple currencies or are using at least one type of cryptocurrency and we've seen corporates are 6x more interested in using and taking the hands-on approach integrating crypto into their corporate systems enabling new digital asset financial services what really what really stood out to me was the ramp up of stable coin liquidity growth which took the payments and treasury adoption to the next level over the last 18 months we now see more than 100 billion dollars of living on the blockchain around the world and i had a firsthand seat to this running an emotc desk we used to routinely struggle to do a 1 million worth of flow through the desk in certain asian markets but as soon as the stable coin liquidity growth took off that went from 1 million to 2 million to 5 million and with that increased liquidity came tighter spreads and better execution so this is why we launched vvnk we're taking our collective experience and searching for the solution and launching the solution we were searching for looking to be the digital asset financial service provider of choice for the corporate mid market thank you very much i'll be at the back if anyone has any questions please come chat to us