Cover Gerry Eng, Coinhako's co-founder and CTO; Yusho Liu, Coinhako’s co-founder and CEO
Gerry Eng, Coinhako's co-founder and CTO; Yusho Liu, Coinhako’s co-founder and CEO
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A specialised platform by Coinhako to meet the needs of institutional and accredited investors speaks to a maturing crypto market, and the firm’s place in it
Against the backdrop of greater macroeconomic volatility, institutional investors are showing increasing interest in digital assets, especially cryptocurrencies. The numbers speak for themselves: for the first half of 2022, the trading volume of Coinhako’s institutional investors saw a year-on-year increase of 300 per cent. Within the same period, institutional investors are also logging larger transactions, with the average size of their trades increasing by some 50 per cent between January 2022 and June 2022.
To better serve this burgeoning segment of the crypto market, Coinhako has launched Coinhako Treasures. Through this new offering’s suite of products and services, the Singapore-based crypto exchange seeks to better engage and empower institutional and high-net worth investors, who are collectively shaping the evolution of the wider crypto landscape.
Specialised Products And Tools
As the platform’s institutional arm, Coinhako Treasures takes a differentiated approach in terms of how it generates returns and manages risk for its clients. For a start, Coinhako Treasures offers a comprehensive range of structured products for institutional and accredited investors. By monetising their underlying cryptocurrencies’ volatility—which are comparatively higher than traditional financial assets’—these structured products are poised to deliver enhanced returns while better controlling risk, essentially offering the best of both worlds.
“These structures will be familiar to our clients as they are also being offered in the [traditional finance] space,” opines Kelvin See, head of trading at Coinhako. He continues, “With the launch of these institutional products, we are taking a risk-adjusted return approach with our goal of growing our institutional clients’ assets values over the long term.”
Beyond structured products, Coinhako’s quantitative analysis team is developing various Quantitative Investment Strategies (QIS) with the goal of generating enhanced alpha for its institutional clients in the crypto space. Other developments that are in the pipeline include additional structured products such as Principal Protected Crypto Notes, which offer exposure to crypto assets for a stipulated periods while providing inbuilt principal protection. Crypto Index Funds are also being created, in order to enable investors to have broad, thematic exposure to a range of cryptocurrencies simultaneously.
Read more: A Whole New World: 6 Points to Note When Delving into Singapore’s Metaverse
Addressing An Evolving Market
The introduction of Coinhako Treasures has obviously come at an opportune time given institutional investors’ interest in the crypto economy. This increased activity will spur further growth in the crypto market for the foreseeable future, of course, but it also points to a maturing crypto market that’s becoming increasingly sophisticated.
On another level, Coinhako Treasures represents the culmination of Coinhako’s expertise as well, whether as a platform to buy, sell and trade cryptocurrencies, or in its role as a market maker. The firm’s activities in the crypto space dates back to 2014, when it first started serving the market. More importantly, this has been done with a keen eye on providing a secure and reliable platform—and maintaining the highest standards of regulatory compliance.
“Our regulatory-compliant processes and continual bolstering of our existing infrastructure have been strategic in our advancements in the institutional space,” shares Yusho Liu, Coinhako’s co-founder and CEO. “Through our commitment to security and reliability, institutional investors can have the assurance and confidence in participating in the crypto industry.”
This commitment was recognised earlier this year in May, when Coinhako was granted a Major Payment Institution (“MPI”) licence by the Monetary Authority of Singapore to provide Digital Payment Token Services in Singapore. The work to build and maintain a robust infrastructure is continuous though. To that end, Coinhako works with various partners including Fireblocks, the market leading infrastructure provider for digital assets, to deploy enterprise-grade custody solutions for institutional clients. Additional cybersecurity measures include using Managed Detection & Response (MDR) services to actively monitor and analyse potential threats, adopting a Zero-Trust Architecture, as well as as Threat Intelligence (TI) tools to collect and process contextual information.
Don't miss: Yusho Liu Wants Coinhako to Become the Grab of Cryptocurrency in Asia
Above Gerry Eng, Coinhako's co-founder and CTO; Yusho Liu, Coinhako’s co-founder and CEO
Gerry Eng, Coinhako's co-founder and CTO; Yusho Liu, Coinhako’s co-founder and CEO
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Potential Despite Uncertainties
While 2022 has been marked by volatility and uncertainty across different markets regardless of asset class and geographical region, Coinhako maintains an optimistic outlook that runs counter to the broader market sentiment.
The firm believes that challenging conditions in the crypto space can be beneficial to the market by spurring the development of stronger fundamentals. In the same vein of things, the stronger regulatory frameworks that are being developed by governing bodies across the globe will also make for a more robust ecosystem that will benefit the market in the long run.
Elsewhere, the increased participation by institutional investors represents much untapped potential, and points to long-term structural demand for crypto-based assets as well as their underlying technologies. Coinhako will, naturally, be at the forefront to meet these needs.
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