Since 2017, a number of Internet-based marketplaces have emerged for instruments issued in blockchains. The nature of a blockchain is a mathematically controlled and secured sequence that, unfortunately, does not allow for the additional services that a depository normally provides. Ecex.Exchange has been launched so that customers can use a detached individual depository service in addition to the trading system.
The trading system sells the opportunity to make a transaction and at first glance, it seems that a blockchain entry is enough to register the transaction. In reality, however, most bigger and centralized trading systems have started to keep blockchain instruments in their account and transactions take place in the trading system without a register. The trading venue register is not sufficient to perform the functions of a depositary. The depositary primarily registers, processes, and also sells the information it collects. Secondly, the depositary is a set of accounts managed by banks on behalf of customers. The bank’s customers do not have a solution for owning digital assets, banks do not currently offer such an option. Transaction information, instrument information, corporate events, etc. As anyone can register an instrument in the blockchain, the required background documents must be in a reliable register, in the case of a trading system in a depository. There must be a full-volume depository next to the banks and trading systems, and this gap will be filled by Ecex.Exchange.
Ecex.Exchange has installed a detached individual depository. This depository allows the processing of both digital assets and assets registered in blockchains. This depository provides a service to banks on the one hand and to economic agents interested in trading digital assets on the other.
Currently, the Ecex.Exchange trading system has 200 instruments and a client base of 50,000 users. Online since 28.05.2018. Blockchain instruments are registered on the basis of data provided by the registrant and the main input is the address of the registrant’s website and the information obtained from it. At Blockchain, instruments are registered for different purposes and there are no options on the market to link these instruments to the documentation. Trading systems also do not reflect the regular registration of blockchain instruments, and the low interest of issuers is due to the lack of regulation of trading systems. We have to admit that a blockchain instrument without background documents is just a number and throws confusion and mistrust into the market.
Ecex.Exchanges depository is next to and in the background of the banks and trading systems, which is equivalent in its features and services to similar institutions on the stock markets. There is an opportunity to correctly collect the issuance documents of companies and sub-organizations, and to issue correct statements and information about the listed instruments and users.
First, technological capabilities have emerged. Personal identification and contracts have become digitally available, and information exchange has become the norm.
Secondly, companies that operate with new technologies have digitized their databases, market participants are accustomed to new solutions, and are willing to test new possible solutions.
Thirdly, the number of instruments issued under the blockchain is growing, with cryptocurrencies becoming part of the financial system.
Fourthly it is a very simple and customer-friendly solution. Simple solutions also create competition.
Fifth, the so-called WEB3 world is becoming more and more mainstream in investment circles.
Blockchain instruments are registered under contracts. For example, 530194 Token Contracts are currently registered in the Ethereum blockchain (18.05.2022). The various cryptographic and blockchain-based instruments have continued over the past decade, and given the appreciation of major cryptocurrencies, growth can be expected to continue and the industry to gain momentum.
There are no direct competitors. All operators in the crypto world are evolving very fast and as a result, we are fighting against time. Applying a depositary to blockchain instruments is a conservative step that balances the market and equalizes the opportunities for economic agents. We are open to cooperation with all market participants and do not plan our activities in direct confrontation with anyone.
MVP is currently at https://ecex.exchange/
The product is a complete trading system, from the creation of a client account, and the trading environment to the client’s settlements. The customer can buy, sell instruments, and receive the necessary statements, documents, and contracts.
The product is a fully developed depository with all crypto section custom attachments. Institutional clients receive API connections and capabilities to reflect the status of identified user accounts on their systems. Depository users may also be other economic agents, including other cryptocurrency trading systems, blockchains, etc.
It is possible that the product will become transaction information and a transaction opportunity that can be sold to other trading venues.
There is a separate information portal, which contains information and agreements about the service provider (us) and training. (everything is under development, some elements are being tested)
The trading system earns money on service fees and transaction fees.
Service fees are listing fees, information fees, contract fees (NDA) statement fees, etc.
The transaction fee is % of the transaction amount.
The costs consist mainly of IT, law, and customer service.
During the start-up period, the cost base also consists of extended management, marketing, and various activities necessary to bring the product to market.
Events as of 18.05.2022
The Team has registered the company EcexExchange Ltd. in England, Cessio OÜ in Estonia, and the subsidiaries of the London company that are registered: EcexExchange UAB in Lithuania, EcexExchange Ireland Ltd in Ireland, and EcexExchange India in India.
The purpose of the subsidiaries is to apply for licenses in different jurisdictions. in particular for the depositary but also for payment and trading systems. The Lithuanian subsidiary has a crypto license.
In terms of technology, the Jumio personal identification system, the Depend depository platform, and the Renevue trading environment have been acquired. Technology development work is underway and a platform change is planned for the end of August.
Tõnis Hilep https://www.linkedin.com/in/hilep/
CEO Tõnis Hilep