The Markets Demand Crypto Regulation. Digital Securities Are Miles Ahead.
Many of us have been watching the bear market in crypto, and most recently, the widely reported downfall of FTX, one of the world’s largest cryptocurrency exchanges to date. Crypto lacks oversight, risk management, and governance. Our business is in digital securities on the opposite end of the spectrum. Markets - analog or digital - have always thrived most when being embedded in sensible regulation to provide and maintain confidence to those wishing to invest their hard-earned cash.
On behalf of our business, KALYP Technologies started discussions with the SEC over three years ago. Since the creation of DSDC one year ago, we have joined the SEC conversations with a detailed consultation regarding our digital securities offering and regulatory status. We firmly believe taking the SEC on this journey with us was the right thing to do.
“Taking the high (and hard) road will ultimately pay off and benefit our members in the long run, with the SEC overseeing our business.” Alistair Jones, CEO of DSDC.
What is obvious, crypto market challenges accelerate the demand for digital securities solutions like the one from DSDC. Especially crypto-native businesses, hit by decreasing volumes and values, are now looking to grow revenues in the adjacent digital securities space, which leverages compliant blockchain infrastructure akin to their historical operating environment. Such acceleration supports a bigger global trend: Boston Consulting Group estimates digital securities to grow 50-150x over the next seven to eight years.
We have nothing to hide regarding our digital securities and are happy to continuously consider any improvements suggested by the SEC to be fully compliant with all applicable regulations. DSDC has been and remains to be fully transparent with the SEC. It is our mission to operate and comply entirely with one of the toughest regulatory frameworks in the world.
DSDC has been very transparent and conservative regarding the claims it made about the benefits its digital securities will bring: We are not raising any capital on the back of our initial digital cross-border securities. All our activities will be serviced by SEC, FINRA, and Federal Reserve members. We will not have any leverage over customer assets, borrow against them, or move them without a customer's instruction.
In sum: The FTX situation cannot occur at DSDC. Our environment has been designed to empower regulated financial institutions collaborating in a compliant manner and therefore prevent such systemic breakdown while delivering benefits from enabling digital securities
DSDC offers distributed market infrastructure delivering more efficient cross-border settlement of securities in digital format; initially Digital Depository Receipts (DDR’s). Any regulated financial institution with an existing service required across the lifecycle of DDRs is invited to apply and join DSDC to offer their security services. Thereby DSDC offers existing firms to position their legacy services for the digital future. For more information, visit DSDC’s website at www.dsdc.net.
About KALYP Technologies
KALYP Technologies is a provider of enterprise software in the capital markets. Its distributed ledger-based software establishes smart market infrastructure for regulated financial institutions and enables more efficient processing of securities in digital format. The firm is independently financed and led by a group of securities industry veterans and distributed ledger technology experts with international presence between London and Boston. For more information visit www.kalyp.com.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for decisions based on such information and it should not be relied on as such.