BnkToTheFuture is the largest global online investment platform in the world, catering to 90,000+ high net worth Bitcoin and Fintech investors. The platform recently revealed that it will be moving its client assets to First Digital Trust (FDT), in a push to separate itself from traditional banking. BnkToTheFuture has identified systematic risk in traditional banking, and plans to position its clients accordingly.
Why they made the Move
The decision by BnkToTheFuture was fueled by the desire to offer additional protection to its clients funds. FDT is the leading financial technology institution in Asia that is powering the digital asset industry. The company has identified systematic risk in traditional banking that BnkToTheFuture plans to avoid.
According to the CEO of BnkToTheFuture, they have worked with numerous banking partners in the past and they were happy to find a partner that understands the fundamental risk of a bank. The CEO added that according to their data, they foresaw a major risk event in the banking sector. As a result, they were integrating the FDT custody services to offer additional protection from the looming economic collapse. Today, BnkToTheFuture is the largest online investment platform with over 90,000 high net worth fintech and Bitcoin investors. Qualified investors flock to the platform to diversify in financial companies, funds, and many other alternative investment products.
The FDT team is composed of experts who have been in the custody and asset servicing industry since 1992. They will now provide custody for the digital assets of BnkToTheFuture’s clients as well as fiat currencies under a fiduciary structure. Unlike the traditional banking industry, the custody provider cannot use the funds to invest. The move will help to strengthen investor trust in the platform as the fragility of the traditional banking sector continues to ascend.
The Looming Financial Crisis
Many top financial experts say that the global economy could be on the verge of collapse due to COVID19. FDT educates the masses, and explains how companies can hedge risk associated with the fractional reserve banking system. Besides that, FDT helps their clients understand the benefits of holding assets in a trust long term.
BnkToTheFuture decided to integrate the FDT custody solution after they started working on their retirement plan investment products for crypto-assets and Bitcoin. The products are set for launch later in 2020. The company also plans to use the FDT fintech-friendly trust structure to allow customers to hold their assets perpetually for inheritance planning in an efficient manner. The trust structure used by FDT offers better legal ownership over assets. Once assets are placed in a trust, they cannot be lent out without the explicit permission of the client.
The online investment platform allows users to make equity investments in innovative fintech and crypto firms around the world. It comes with a minimum investment limit of $1000. Some of the companies in their portfolio include Bitpay, Coinbase, Ripple Labs, Bitfinex, Kraken, and over 100 others. The platform has received major support from top tier investors such as Sir Richard Branson.
With a recession looming due to the COVID19 crisis, many people are beginning to realize the danger of storing their assets in the traditional banking sector. While various banks have created crypto custody solutions, funds held by banks are still exposed from a liquidity standpoint. The BnkToTheFuture platform will benefit from the custody solutions offered by FDT in order to insulate investors from a potential crisis. Consequently, it will help to increase trust in the platform.
Image Source: BnkToTheFuture Twitter