Asset management was one of the industries that was most disrupted by cryptocurrencies, with the new asset class giving many investors an alternative to the traditional systems. And as with any other technology, you either jump in or get left out. For Oliver Prock, the decision was to jump in to crypto, and through his company FXToken, he gets to engage in asset management using crypto. In an interview with Becky Liggero, Prock explained why decentralization can’t be applied everywhere.
Prock was a banker and asset manager before he founded FXToken. He explained, “I was sitting down three years ago and I knew I was going to be disrupted as an asset manager. And I was sitting there wondering where is my place in this disruption?”
It was then that he decided to get into asset management using crypto. His company offers a crypto fund besides its traditional assets. But this wasn’t enough, and Prock saw the need to have a stablecoin which could shield their assets from volatile markets. Thus came FXToken, a stablecoin that is designed to maintain a stable value versus various fiat currencies such as the USD, the euro, the Swiss franc, the Japanese yen and more, all while ensuring liquidity to the system.
FXTokens is a direct competitor of Tether, a stablecoin that has become overshadowed by controversy. Prock believes that Tether was a brilliant solution for the volatility that hits the crypto market, but its time has passed. Moreover, FXTokens peg their value not just to a basket of fiat currencies, but also from government bonds which are more stable.
The common notion that everything should be decentralized is misguided, Prock believes. There must be some regulated market players whom the industry has trust on.
As a professional, I can’t exchange the custody of something that wants to be decentralized with a person that’s not regulated. That doesn’t make sense. It simply doesn’t work for me. […] The space needs to understand that this ‘trustless’ industry notion doesn’t work for everything.
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