Cryptocurrency is becoming a very hot investment topic. However, the choice of relevant investment products remains limited, says Hui Wang, the Swiss representative of Matrixport, a Singapore crypto financial services company.
Hui Wang, we hear more and more people are interested in cryptocurrency investment, but it seems the product offers are limited.
Whenever cryptocurrency investment is mentioned, people automatically think of adjectives such as volatile, risky, but sometimes also monotone, and boring. It is very surprising that such opposite adjectives can be associated to describe the same thing. Today, when an ordinary person would like to invest in cryptocurrencies, such as bitcoin, he or she has very limited choices.
Either can the investor buy the coin directly in the market, participate in a fund, or purchase a certificate that is linked to bitcoin performance. All three possibilities only generate profits if the price goes upward. Unless one is an active trader, it is very difficult to benefit from a sideway or downward market. Investors need more products that can enable them to benefit from various market conditions while mitigating the risk.
So why aren’t there more interesting crypto-related products like other asset classes which enable investors to generate profits in different market conditions?
To design and offer such products, the financial services company must have very good knowledge not only about the underlying assets but also know where and how to source the appropriate hedge. For crypto-related products, this is even more important. Due to the small size of the market, experts who are capable to assemble and offer such products are rare.
What can Matrixport offer to its clients and what are its strengths?
Financial services company Matrixport is a spun off from the world’s leading ASIC chip (mining computers) producer Bitmain Technologies. With its rich industry resources and leading technology capabilities, it strives to offer its clients innovative products. Thanks to the leader position that Bitmain enjoys in the mining hardware market, Matrixport has a very established clientele since its very beginning.
Although a new company, Matrixport already has more than 150 employees worldwide with the majority of them working for the technical side and the rest having a strong financial industry background (with past experience at Deutsche Bank, Citi, Merrill Lynch). It can be said with confidence that the company’s knowhow on everything crypto, blockchain, and financial products is solid and proven.
With all these favorable conditions, the whole Matrixport product development team works hard and intensively on designing new exciting offerings to satisfy a rapidly growing market. The recently launched dual currency product and zero-interest loan are two very good examples.
Is Matrixport’s dual currency product similar to the dual currency product with fiat?
Yes, the basic idea is the same. The Dual Currency Product is a non-principal protected investment product with a floating return (up to 50-100 percent annualized). The yield of the product is secured at the time of purchase, but the currency to be settled in is a function of the numeric comparison between settlement price at expiry versus linked price.
It is a short-term investment product that gives you the opportunity to earn potentially high returns, and you will also be able to enjoy the flexibility of different durations of your choice. Currently, Matrixport provides BTC-USDC1 (or Dollar) products. The investment currency is bitcoin. Investors purchase the product with BTC. The settlement currency can either be BTC or USDC (or Dollar), depending on the numeric comparison between settlement price and the linked price.
Does Matrixport also provide lending products?
Matrixport provides liquidity to its clients against cryptocurrencies as collateral. The Zero Interest Loan offers interesting opportunities to obtain a loan with zero interest and zero risk of liquidation. The product is entirely customized. By giving up the opportunity cost of potential bitcoin upside through the profit-taking point, the client gets to enjoy the benefits of zero interest, downside protection, and the assurance of zero risk of liquidation and no additional collateral top-up.
This is particularly suitable for clients who don’t want to take the risk of potential collateral top-up or forced liquidation, who focus on stable yielding and expect price would not rise beyond the profit-taking price at maturity, thus to have risk mitigation of drastic market declines in BTC at maturity.
Are there more products like these to be offered by Matrixport?
Yes, the potential of developing new crypto-related financial products is huge. The above mentioned two examples from Matrixport are just the beginning. Other exciting and innovative products will be introduced in the near future. Our goal is to provide solutions that enable our clients to choose different crypto investment strategies and increase the total value of their crypto portfolio.
Founded in February 2019, and spun off from Bitmain Technologies, Matrixport is a crypto-financial services company headquartered in Singapore with offices worldwide.
Matrixport aims to create the next generation digital financial service platform. The company’s vision is to enable a more open and equal financial system by using blockchain technologies.
For further details, please contact Ms. Hui Wang, Chief Operating Officer of ChainTech AG: This email address is being protected from spambots. You need JavaScript enabled to view it.
1BTC is the abbreviation of bitcoin, USDC is a USD stable coin issued by Coinbase (an equivalent of USD on the blockchain).
Only for qualified investors, not for redistribution. Important Information: This entry is provided for general information purposes only. It does not provide advice of any kind, including fiduciary investment advice. Interested investors are advised to seek independent legal, financial and tax advice prior to making an investment decision. The value of an investment and the resulting income can go down as well as up. This entry does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to buy or sell cryptocurrencies in any jurisdiction or exercise of any particular investment activity. The contribution has not been reviewed by any regulatory agency in any jurisdiction. Under no circumstances may the article be copied or redistributed, in whole or in part, without the consent of Matrixport / ChainTech AG. The document is not intended for use by persons in countries or territories where its distribution is prohibited or restricted. In certain countries, it is only provided on special request. The document is not intended for retail investors, irrespective of the country or territory in which they reside. All rights reserved.
