Simplifying the Capital Markets for Crypto Investors
For many investors, cryptocurrency is like basic addition and the traditional financial markets are calculus. While they exist in the same space they have two different levels of complexity. Conversely, to people who initially started with the financial markets and have a level of familiarity with it, understanding the inner workings of a blockchain, wallets, decentralized finance, and the rest of the terminology that comes with cryptocurrency seems like a Herculean task.
This discrepancy has over time led to a widening chasm between the two markets. While some do dabble in both successfully, most prefer to remain firmly on one side of the line, either exclusively trading cryptocurrencies or traditional financial assets. As a result, a link between the two if successfully implemented could prove to be very profitable for all the parties involved in the venture.
The Canadian financial firm Finhaven seems to have noticed this and is currently putting in its best efforts to take advantage of this unprecedented opportunity. For Finhaven, a gradual shift from analog to digital in the financial markets is of paramount importance as it will bring with it increased efficiency and a wide range of possibilities. It seems one of these possibilities is blockchain integration.
Regulation has historically been for many companies to operate within different countries and with the crypto-financial bridge, it is no different. Luckily for them, Finhaven has recently made a breakthrough on this front. They were granted operating rights in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Québec last year and are taking full advantage of it. These rights are not without responsibilities though.
They will be required to ensure investor protection, market integrity and make regular reports to regulators. Regardless, Finhaven CEO DH Kim remains optimistic and has stated his willingness to comply as well as his enthusiasm to implement his blockchain vision.
Maneuvering Financial Markets With Crypto
Finhaven Private Markets is the company’s solution which it hopes will bridge the gap between crypto and financial markets. It uses Distributed Ledger Technology(blockchain) and digital securities to secure an opening in the financial markets for crypto investors. On the other side of the coin, it will also serve as a new financing opportunity for companies looking for capital investors.
Finhaven has created a blockchain-based solution that it hopes will ease the slide into financial markets for crypto enthusiasts. GatewayFH is a platform built to allow users to purchase digital assets with cryptocurrency. Using the platform’s token, FinToken, users will be able to directly purchase digital assets tied to real-world companies. Along with exposure to digital assets, Finhaven is offering a few benefits which it hopes will entice both investors and companies alike.
For investors, they gain access to the financial markets while still being secure in their cryptocurrency world. Users will be able to purchase digital assets from companies and other users, which will likely be more stable than their usual crypto holdings. They will also gain access to a secure wallet from which they can manage all their holdings.
Companies, on the other hand, will gain access to a new source of capital funding. A union of crypto and traditional finance will allow for relatively seamless outflow from your crypto wallet to digital assets. Whereas you would previously have to convert your crypto to stablecoins before withdrawing it to your bank and putting it on an exchange, FinToken will allow you to make these transactions much faster.
All is not rosy, however. One of the main benefits of this adoption being its removal of intermediaries from transactions and allowing direct peer-to-peer trading. This could be a double-edged sword depending on how Finhaven chooses to handle it. These intermediaries, although sometimes superfluous, also sometimes act as checks and balances during transactions. Their absence could potentially open up users to fraud from unsavory characters.
Regardless, the regulations currently governing Finhaven’s operation should provide some comfort as security on its platform will become a high priority.
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
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