There are various products available in the market providing exposure to the crypto market who doesn’t have a comparison with the solutions CyberTrust is providing. They have the risk of exposing investors directly to the credit risk of the issuer which till now has not become a credible source in the traditional market.
There is an excellent example of this: Grayscale BIT issued 1.87 million shares in early 2017 which now has an approximate value of $1.3billion.GBTC shares had a premium value of around 85-95% in October 2017 underlying bitcoin which means 185-195% to the current value of BTC. The premium in USD as of November 3rd, 2017 was $3100. Even though Grayscale BIT is a credible source of connecting Crypto market with the traditional market where major players are the Banks, Financial Institutions, and other Investors, GBIT does this only for Bitcoin. Bitcoin may be the most significant player in the Crypto Market, but when we look at the other side, it is the lowest performing cryptocurrency among top 10 performers. Ethereum(ETH) has gained its value over 3000% compared to Bitcoin which increased 300% in value. One of the reasons might be being easily movable and faster transfers. Grayscale BIT is a closed-end fund hence is unable to respond to the needs of the market quickly even though being a US-based clearing.
All of these complications and limitations are being removed by CyberTrust via the creation of CABS(Crypto Asset-Backed Securitization) Tokens allowing the holders of the Tokens to enjoy the priority rights on getting a discounted securitization premium.
Vitalik Buterin, The creator of Ethereum Blockchain, met the CEO of the most significant Banking group in Central Europe in 2016 which led to the interest of the CEO in the blockchain technology, Ethereum to be precise and particular.But this led to a delay in investment by traditional investors in Ethereum due to the existing Systems like Accounting requirements, due diligence, tax reforms and regulations and Legal conditions which led to the deal still in progress after three financial quarters and Ethereum increase 40 times in market value.
The main reason for this delay being Cryptocurrency doesn’t have auditable/titled ownership where the risk of Clearing and Settlement are not Normal according to the traditional market. There is no process for the investment in case something goes wrong. Also, Security is also an issue related to cryptocurrency as more and more security breaches are in the news nowadays.
CyberTrust has overcome all these issues as it has created the Global Crypto Notes(GCN) where each of the notes has a registered International Securities Identification Number(ISIN) due to which, the owner of GCN will have advantages like-titled security which entitles them to claim to the underlying crypto asset which they possessed.
Comparing GCN with Crypto Assets:
• GCN can be easily audited by the Big4 accounting firms while Crypto Assets are not auditable.
• This also has an advantage that it can keep kept as collateral within a regulated financial framework while it is not feasible for investors to keep cryptocurrency as collateral.
• Crypto Trading is done via OTC or crypto exchanges like Kraken, Bitfinex, etc. which carries a risk of in carrying and settlement. However, GCN’s are cleared via Clearstream Banking S. A, meaning that any bank around the world, within t+3 can get all rights will be transferred to the Clients custody.
• GCN is OFF-CHAIN underlying assets which are subject Luxembourg governance that means within the custodial timeline, GCN ownership could be terminated by the courts of Luxembourg while on the other hand Crypto is not governed, managed or subject to any sovereign government. Blockchain transactions are irrevocable in spite of what the Legal contract says. Some investors may wish this, However, it is a killer for Institutional Investors.
There are various theft risks involved with the Trading in cryptocurrencies as crypto assets can be held via PC’s/Smartphones and numerous other Web Browser crypto Wallets who don’t even have any separate and safe Hardware while with CyberTrust, Legal formalities and obligations are involved with the Licensed Depository for keeping the assets of the Clients in a safe and sound manner.In and out Transactions of Crypto out of GCN Custody within Hot Wallet is Insured which gives an assurance to the Investors. GCN’s are stored in a third party Cold Vault Storage where they are kept at best in class sophisticated technically advanced solutions.
For more information about the project, technologies and the regulations behind the securitization platform of CryberTrust. Please Read the Whitepaper https://www.cybertrust.io/CyberTrust-WhitePaper.pdf
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