On your website you can read that BlockState wants to build bridges between the traditional financial sector and the crypto economy
With our products we want to bring together the efficiency gains of blockchain technology with the compliance requirements of the classical financial world and thus build a bridge. Our mission is not to abolish banks and replace them with a regulatory evasive solution. We must not forget: The classic financial world also has a lot of advantages. If I lose my password for my online banking account, then I have a contact person who helps me to recover it. In our opinion, intermediaries are not superfluous per se, especially if they provide a certain level of security. At the same time, my experience in banking is that the structures there often date back to the eighties.
You are planning to make investments in crypto currencies possible for institutional investors – how exactly is that going to work?
So far it has hardly been possible for institutional investors to participate in the crypto currency market for regulatory reasons – we want to change that. We will be launching an index product this year that tracks the 15 largest crypto currencies. This index product will not only be available for private investors, but also for institutional investors, as it meets their regulatory requirements.
How do you solve the regulatory problems that many companies working on crypto funds are currently facing?
One of the biggest problems with crypto funds is cleanly auditable pricing. For Bitcoin and Ethereum there are now consolidated prices due to the futures market. However, this is not the case for other crypto currencies, especially beyond the top 10. This is where we come in and first ensure transparent pricing. Another problem lies in the structure of the products: So far, these products are primarily available to wealthy private clients, as they do not comply with the regulatory requirements of institutional investors. Our products, on the other hand, will meet the UCITS and PRIIP criteria and are therefore tradable on stock exchanges and also suitable for institutional investors for diversification.