The Web3 Banking Landscape

Transcript

thank you Nikki good morning web three Bankers so welcome to the first of its kind web banking Symposium so my idea today is just to give you uh some context uh some overview and some structure uh for our further discussions today we have very tight agenda very busy I hope you will get more than enough content to consider and to work with after the conference so webbank landscape first part I was always saying that crypto and blockchain is not a revolution it's an evolution and today we have a great illustration to it look we have a lot of traditional financial institutions here it's a great proof that this is just normal Evolution right

so my name is IIA vov I'm a board member of crypto value Association uh CEO of hodler ftech company bridging crypto and traditional Financial uh instruments and uh I'm an ambassador of inovo for in Switzerland so let's begin uh firstly let's briefly speak about uh definitions what is web3 banking so web3 bank is a financial institution that combines both so first of all crypto and traditional financial instruments right secondly it's about combination of centralized traditional approach with decentralized approach and third point is about payments so we all know about traditional payments Trails

like like SE sepa Swift Visa Mastercard but nowadays we can also speak about blockchain again as a payment rails so web3 banking institution is an institution that supports 360 degrees of uh payments so here is a definition uh let's briefly speak about the Innovation continum I really like this chart because this chart illustrates the way of any innovation human history so we can take firstly some simple example like mobile phones right so initially it was impossible like 30 40 years ago it was totally impossible even to think

that uh we will all have such a powerful mobile devices in our pockets right after that it became practical they were heavy they were big batteries were were just very bad coverage was uh very bad but thanks to guys like Nokia it became possible right after the that it became expected and now it's 100% required we can take another example from banking industry we can speak about cards of course but maybe it's better to take an example from uh let's say contactless payments like Apple pay right long story short even like 10 years ago it was impossible but now it's required so uh any retail Focus Bank actually must have now contact contact L payments right and

support Apple pay and Google pay and these kind of uh tools so now speaking about crypto I believe that we are here we're already at the expected phase right so customers of traditional Banks already expecting to get uh digital assets uh already expected to get an access to crypto right and I'm sure that tomorrow it will be absolutely required and here is a good illustration so just please quick disclaimer don't get confused I'm very limited with this slide I have just a few illustrations here so uh the most maybe Advanced institutions already adopted uh uh digital assets so some illustrations again post Finance just recently

announced that in collaboration with the Signum open an access uh to crypto offering to millions of its customers right in another good example collaboration of Amina Bank EXA bank with s Galer Continental Bank again don't get confused we have other Continental Banks here it just an illustration so uh another good example I like uh is risen Bank s Austria so this Bank implemented crypto offering based on partnership with bit Panda regulated Exchange in Austria so and we have many more examples like societ General Forge collaboration with metaco UBS is actually working with the teiz of assets right City Bank is actively working with digital assets Visa in collaboration with circle and not only

and the good part about this slide is that we are not speaking about slow development of tradition traditional institutions uh as you can see it's all based on collaborations between traditional financial institutions and blockchain Native crypto native companies it's a very smart move because blockchain native companies and digital asset Banks already spent years for the development of the Technologies and now they are sharing these Technologies with others this is very important point to understand that this is a good way to uh to adopt uh modern Technologies and uh of course digital assets so uh now speaking about Essential Elements to Kickstart your crypto

offering if you are still considering joining the space so I see five Essential Elements here so the first one of course as always is about Regulatory Compliance we're speaking about a market that operates 24/7 365 days a year with no borders it operates globally but it's regulated locally right regulation is still fragmented and that's why it's very important to consider this part before joining the space right another point kyc and IML compliance again as always it's very similar to traditional Finance but still it has a lot of nuances uh connected to the nature of blockchains transactional monitoring all these kind of uh technological things so another

part uh is about blockchain infrastructure so to Kickstart your digital asset business you have to consider supporting uh multiple networks uh custody system of hot warm cold wallets all kind of balancing issues uh and of course if we're speaking about anization of assets you have to be able to handle smart contracts right so another important uh piece of this puzzle is liquidity so to start this business you have to use Integrations uh with liquidity providers again uh it's all about support of multiple coins multiple blockchains making prop connections staking is the important part to

consider right when it comes to liquidity uh and of course uh it's about integration with Fiat flows so Krypto would not work without traditional assets right so in order to provide crypto Services you have to make sure that you have proper bridging between crypto and Fiat and of course cyber security right so it's digital business it can be under attack 247 so they're important part to consider before joining the space and now maybe the most interesting part about actually web banking landscape again quick disclaimer I'm very limited with the space of the slide on the right side you can see some logos there are many other companies so there are five layers when we speak

about the landscape again at the bottom of this chart you see legal advisers so professional companies already spent years analyzing this modern technology regulation uh spent years in communication with different Regulators in order to provide companies who' like to join the space with with Solutions already available Solutions how how to start it how to be compliant right so here in this room we have PWC we have mme so but of course guys there are many other companies also working with uh with the this part with this layer of the landscape so second part uh is about technology providers right so uh there are many companies who are building

professional solutions for every single piece of technology needed for example if I speak about custody so we can go to metacore right we can go to Ledger we can go to Taos and some other companies so these guys already spent years invested millions in the development of custody Solutions there is no need to reinvent the will right so when it comes to uh blockchain analysis financing tools uh and uh uh IML compliance there are already available professional Solutions in the gain represented in this room so I'm speaking about elliptic and score chain again uh I'm limited but uh at least these two companies we have

in this room today so uh thums up if you need an automated kyc IML tool there are already available Solutions such as thums up again we have some guys from some sub here today in the room so going next uh next layer is about fintech companies financial intermediaries and uh exchanges I would say that maybe uh this is the most agile layer because these kind of companies are collecting all the customer demand being one of the first uh aggregating all the technology providers and building ready to use Solutions in some cases it's some kind of a plug andplay Solutions in some cases it's some kind of um white label

Solutions and again just a few illustrations so around yil Ken is an example of exchange and yodler so going next very important layer and we are very lucky in Switzerland because we have fully crypto native digital native Banks such as Signum and Amina so these companies already spent again years in the building of Technology convincing Regulators structuring everything and finally building fully regulated Banks but at the same time fully blockchain native right and of course on the top of this uh chart we see traditional Banks again

the list is not complete but post Finance tugar Continental Bank saller Continental Bank risen Bank Austria and many others and in the most um cases again their blockchain offering digital assets offering is based on collaborations with other layers of this chart from bottom to top so uh my point here is that there is no need to reinvent a will right uh there is enough products and liquidity on the market thanks to bitcoin ETF and not only so really liquidity is growing every day uh and it's really speeded up after this year approvals of ETFs right

uh there are enough products there is no need to create something fancy it's already created uh then infrastructure Solutions are available from professional service providers and fex can provide even white label Solutions like plug-in play to softly test this Market softly test this uh kind of business right again there is no need to reinvent reinvent the will so what next uh I see three points so first one is about non-custodial wallets for traditional Banks uh we all know that traditionally banking is based on centralized approach right but I believe that very soon customers will at least expect

non-custodial approach where bank will be able to use funds only in connection to exact request from the customer because it's being pushed by technology by itself by by by the nature of technology so this is something to discuss next maybe next year at our our web3 banking Symposium so blockchain payment rails uh again I believe that we will see more and more Payment Solutions based on blockchain uh next point of course is about real world assets on blockchain it's already very active part of the market they're active but I think it's still forming and again I think next year we will have a lot to discuss about real world assets on blockchain and just maybe to spice up a bit and to

illustrate these new trends I have two examples here so uh the first one is about Naka cart so as I know this is company uh from Slovenia as I know they're active in Lugano so and they're offering some interesting Solutions so they're offering traditional payment card compatible with traditional POS terminals but directly connected to metamask so technically speaking they're offering to spend your funds using normal cart plastic card without any financial institution behind so just direct connection between metamask and like stable coins in it and payment card of course I'm not sure that uh it will have like a big future but at least it's

something bold right it's something disruptive and it's about a different kind of blockchain payment rails and noncustodial Solutions so another example uh and I'm actually they happy to illustrate it uh Uma Universal money address so we all remember the idea of PayPal right uh back then it was very disruptive an idea to send money via email now we have next level of this idea company Light spark uh using lightning Network on bitcoin introduced Universal money address address that uh is compatible with both with blockchain and with Fiat instead of keeping in mind your long

line of digits and letters for blockchain or even storing somewhere your iband number uh you can use just simplified Universal money address right and to use uh Bitcoin lightning to to transmit uh payments and as I said I'm happy to announce that starting from today we at yodler started our partnership with lights Park and already started from today our customers can pre-book their address so this is just something new and again so the the future is still uh not defined right but at least we have some some some Trends so uh again all layers of the landscape represent in this room so

enjoy the Symposium and if you're not a member of crypto value Association join it it brings a lot of value thank you