The world of cryptocurrencies is constantly evolving – from the days of the odd investors to now serious investors that we see today. Cryptocurrencies, undeniably have the potential to change the world. For instance, did you know that one in every five financial institutions considers trading in cryptocurrencies as a way to maximise portfolio value? And, that’s just the tip of the iceberg.
Virtuse exchange is a next-generation, blockchain-powered exchange, bringing cryptocurrencies to global investors as a way to combine the world of traditional investments with a wide range of crypto assets. It’s the next big step in linking virtual currencies to real-world assets in a safe environment.
You could think of the Virtuse Exchange as creating a paradigm shift through Crypto Asset Digitization. It makes crypto-trading within reach to everyone, from hobby to sophisticated investors who are looking to maximize their potential gains from cryptocurrency trading. The Virtuse Exchange serves a much wider purpose — to decentralize global markets.
Virtuse Exchange envisions a future where capital markets are transparent, and accessible by everyone, at any time.
Today, global financial markets are more integrated than ever. However, it is this “integration” that institutes weakness with the current system. That’s because traditional capital markets are centralized, neither transparent nor accessible and typically benefit the wealthy.
Virtuse Exchange envisions a future where capital markets are transparent, and accessible by everyone, at any time. The Virtue Exchange is like no other as it instantly opens up trillions of dollars in assets through crypto-trading, bridging both global and crypto markets. Without Virtuse, this wouldn’t be possible.
There’s a pressing need for inherent transparency — and, this is key to market stability.
Despite all of these benefits that global financial markets bring, there remains a major concern among global investors, and that is transparency.
Transparency in financial markets includes information about the issuer, such as accounting data, credit ratings, and information about the business, and information about the issue, like the size of the issue, voting rights, rates of returns, and legal factors. In addition, it also covers (and is by no means limited to) market information. Things like whether the trading exchange is regulated or non-regulated, including the issuance, exchange, settlement and redemption.
According to a study by the International Monetary Fund, transparent markets are “more stable” in the face of financial fluctuations — when compared to those that aren’t so forthcoming with information. While the vulnerability of international markets greatly varies, markets that provide more timely data that are fully disclosed react less sharply to the ups and downs of global market conditions.
There’s a pressing need for inherent transparent, and cryptocurrencies are clear drivers of this revolution, being key to market stability.
Today’s financial markets are in a complete discord, beneath the scenes a revolution has begun.
One of the key features of cryptocurrency exchanges is the use of digital safeguards that ensure security in transactions through transparent processes – financial information is transparent while identities of the trading parties are held confidential.
The adoption of cryptocurrency as a “mode of monetary exchange” could serve as an effective deterrent to corruption globally, since Blockchain-enabled transactions are digitally protected and can be traced to its key — otherwise known as a unique identifier for authenticated cryptocurrency users.
Recent turmoils in global finance, such as the 2008 financial crisis have had a massive impact on institutional and private investors around the world. Put simply, global markets today do not hold the trust that they once held.
That’s why global financial systems are in need of a complete overhaul. and we’re whether we like to admit it or not, we’re amidst a financial revolution.
Virtuse Exchange marries the old with a new exciting way to invest.
Virtuse Exchange has married the concepts of traditional exchanges, such as the EUREX Exchange or the NYSE, with the recent revolutions of crypto exchanges to create a safer platform that connects crypto markets to real-world assets.
The Virtuse Exchange is based on VIRT (Virtuse Token) that’s ERC20 compliant, the gold standard for all Ethereum tokens to follow and comply with, and is used widely in trading, the settlement of contracts, insurance and leverage, and also in trading in cryptocurrencies, forwards and commodity futures. This transforms how value is stored, recorded and transformed, ultimately building a future that everyone can benefit from.
Considering the way the market has been looking up to Virtuse Exchange with hope and confidence, the next wave of financial growth is just around the corner.
Throughout our history, some of the world’s greatest geniuses like Sir Isaac Newton have tried to turn base metals into gold – only to fail. Or, ancient civilizations like the Egyptians ingested gold for longevity. And, now we have Virtuse Exchange turning gold into the Blockchain. Let’s face it, we have an obsession with gold.
Virtuse Exchange enables investors from around the world to trade a broad range of crypto assets along with thousands of other traditional assets. In short, they combine the best features of traditional investment and digital assets.
You might be thinking for a second, what’s a digital asset? Well, in regards to the Blockchain, they’re a new kind of asset class that dates back to 2008, when Satoshi Nakamoto published an essayproposing the idea of a new digital asset. This became, what all we know now as — “Bitcoin.”
Since then, digital assets have evolved to become a buzzword in financial circles because how they can be applied to global financial markets have the capability to entirely revolutionize the financial industry. In today’s sense, a crypto asset is really just a token backed by an actual asset, i.e. fiat, gold etc.
When looking at crypto assets, lots of people fail to understand whether or not a cryptocurrency is “actually” backed by an actual asset. That’s because, technically speaking, a cryptocurrency or token, can be considered an asset because people perceive that there’s an inherent true value — to the extent that they’re willing to invest.
But here’s the catch, what many cryptocurrency providers have neglected to do is bridge the gap between “traditional assets” and “digital assets.” Right now, you might be thinking … how could this become possible?
Well, Virtuse Exchange has innovated “the whole” financial space as we know it by creating Digital Asset Collateralized Tokens (DACTs). In a nutshell, these are asset-backed crypto investments in stocks, bonds, commodities and other funds. This allows investors to take advantage of a multitude of investment options, opening up potentially trillions of dollars in assets through cryptocurrency trading.
VIRTUSE EXCHANGE INTRODUCES “DACTS,” AND IT COULD BE REVOLUTIONARY
Digital Asset Collateralized Tokens (DACTs) essentially connect tokens to real-world assets. They enable what could be the biggest change in investment history. With Virtuse Exchange, cryptocurrency investors can invest in a huge range of asset classes simply by buying DACTs that are secured against real-world assets.
DACTs are an attractive way to store profits during times of volatility rather than having to exchange cryptocurrencies into FIAT when the prices are undergoing sizeable price fluctuations. Here are just some of the benefits that Virtuse Exchange DACTs provide:
Borderless and available for trading every day of the year.
They successfully eliminate common intermediaries such as banks and custodians reducing transaction fees.
Everyone is able to trade without any limitations in terms of minimums, deposits, or collaterals.
The Virtuse financial ecosystem provides access to future trading offering new products to invest in that would only be, otherwise, be available for a select few.
Financial assets are growing at an incredible rate. According to a report by McKinsey, total global financial assets were valued at $198 trillion in 2010 and by 2020, they are projected to surpass $371 trillion.
Even though exchanges have largely gone digital with most trades conducted electronically, millions of trades are still conducted on paper. Through Blockchain technology, exchanges can now become fast and more efficient.
Such is the case with Virtuse Exchange, a crypto exchange that imagines ‘what would the world be like’ if financial markets let investors participate in investment opportunities worldwide, that is today, only available to banks or high net worth individuals (HNWI’s).
With that in mind, the Virtuse Exchange connects crypto markets with global financial assets, commodities, government emission allowances, stock indices – to eliminate the middlemen and bring a high-level of transparency to the financial sector.
In effect, the Virtuse Exchange cuts out banks, custodians, brokerage firms and exchange fees. This simple, yet very efficient process severely reduces “fees” that are typically passed onto general consumers and investors.
Not only does this new exchange save investors money, it also speeds up the investment process extraordinarily, making transactions instantly occur. To some, this may not seem like that much, however, it really truly is.
If you can envision, how many middlemen the financial exchange process has (banks, brokers etc.) whilst also factor in “transactional time delays” that can take up to 3 days with the inclusion of weekends and holidays – the platform is truly out of this world.
The Virtuse Exchange Uses DACTs
The core innovation of the Virtuse platform is Digital Asset Collateralized Tokens or “DACTs” for short. In essence, a DACT is really just “ownership in an asset” – be it equity, bonds, commodities, futures – it’s just a tokenized version of that.
The platform will feature numerous easy-to-use analytics and newsfeed tools, for traders, such as:
Market data analysis
Analyzing market history
Through DACTs, investors can generate profit, or find products, for example for “hedging purposes.” Both regulated and non-regulated offerings will be offered on the exchange platform, alongside private offerings that follow the KYC protocol.
Asset Digitization and the Tokenization of Commodities
Cryptocurrencies offer unlimited potential through digitizing assets (also known as tokenization).
According to JPMorgan Chase & Co. “Bitcoin may have caught our collective attention as an asset because of its exponential growth in a low asset environment, but the technology behind it has the potential to disrupt the asset management landscape.”
Cryptocurrencies have gained a lot of interest among people from all walks of life and can be purchased, handled and traded by anyone. Well, as long as they have an internet connection and some funds to spare.
By leveraging the power of Blockchain technology, and allowing trade with standard cryptocurrencies (Bitcoin, Ethereum, etc), Virtuse Exchange is opening financial markets worldwide to “asset digitization” – all through the tokenization of commodities.
In order to create digital assets out of these assets, they must be first tokenized and backed by liquidity (generally raised through an ICO campaign), and ultimately listed on crypto/digital exchange platforms.
While conventional financial instruments like – equities, bonds, futures, real estate etc., can be digitized, only a small few have attempted to create such a transparent global financial exchange ecosystem.
The team is led by Founder and CEO, Ras Vasilisin. In the last 12 years, Ras steered the Virtuse team to become one of the most recognizable brands within the European energy industry growing revenue to €250,000,000.
Virtuse Exchange Digital Asset Funds (DAFs)
Digital Asset Funds or DAFs are tokens consisting of a portfolio of several coins. On the Virtuse platform, these funds are managed by a team of financial experts, which include, financial analysts, mathematicians, and cryptocurrency professionals.
These funds (DAFs) bring several benefits to seasonal, institutional, and sophisticated investors, such as, create a safe haven for investors to “park” profits during high volatility in crypto markets, greater portfolio diversification, and private use.
Linking tokens to real-world assets ensure liquidity for crypto investors. As an example, talented portfolio managers that set up their own Digital Asset Fund could greatly benefit from the Virtuse Exchange and potentially beat the market.
From tokenising carbon allowances to tokenising all real world assets
Author: Wang Yanhua
11 years ago, Ras Vasilisin founded Virtuse Group, one of the world’s largest carbon emissions trader. Then he saw vast potential in the blockchain industry and founded Virtuse Exchange this April, a decentralised blockchain platform with a vision of letting all real world assets be tokenised.
Block Asia caught up with Vasilisin and Virtuse Exchange head of Asian development Rob Chong to find out the story behind the ambitious startup.
Vasilisin told Block Asia that the idea stemmed from blockchain emerging as a way to consolidate the carbon trading market.
“We originally wanted to build a carbon trading blockchain platform, but we realised that instead of building a blockchain platform just for one commodity, we can build it for every commodity, not just carbon.”
“If we combine three hundred trillion of the world’s assets, we are going to build the largest exchange in the world.” said Vasilisin.
Vasilisin sees an untapped business opportunity in bridging real world assets to cryptocurrency tokens. He said, “Cryptocurrency assets are a thousand times smaller than real word assets.
“The number one reason for setting up Virtuse Exchange is because we believe that current exchanges are inaccessible for normal people. I’d like to change that. Right now, exchanges are expensive as they involve middlemen. You cannot trade on exchanges such as oil and gold 24/7 too, there are opening and closing hours.
“We can tokenise pretty much anything you want as long you meet our protocol.”
BLOCKCHAIN IN CARBON TRADING
Blockchain has been upheld as the key to make carbon trading more transparent and effective, which was what stirred Vasilisin’s interest in blockchain.
Vasilisin and Chong are firm believers that carbon trading is the best way to fight climate change.
Vasilisin said, “We’ve been involved in carbon for so long. From 2010 onwards, and 2013 we went to China as well. We believe that the main driver for decarbonisation is carbon trading.”
“If we bring up the price of carbon to a high level, the big factories and plants would want to adopt better technologies,” Chong added.
Carbon trading is not without its controversies. Virtuse Group pioneered the carbon emission industry under European Union’s Emissions Trading Scheme (EU ETS) in 2010, but there has been a wide gap between environmental rhetoric and reality in the EU ETS.
Some argue that in their decade of existence, such carbon trading markets have offered new means for the heaviest polluters in fossil-based industries to delay structural change. By encouraging various types of offsets rather than by fostering innovation to reduce dependence on fossil fuels, some find carbon trading’s effectiveness questionable.
But Vasilisin and Chong see blockchain as the potential fix for carbon trading.
“Virtuse Group is one of the three biggest carbon brokers in EU. Naturally, we have a wide portfolio of carbon allowances. In Virtuse Exchange, we tokenise carbon allowances into crypto assets to make it accessible for everyone to trade,” Chong said.
He cited the current shortcomings of carbon trading, “Currently, carbon allowances trading are mainly for emitters while entry barrier to enter this market is high. Carbon allowance prices are also regional, like China, US, and the EU.”
Drawing from the experiences of Virtuse Group, Virtuse Exchange aims to fix a high global price for carbon.
“What we’re trying to create for the first time is a universal carbon price. When we can put a price for carbon globally for the emitters, it is harder for each country to manipulate the price,” Vasilisin added.
Chong told Block Asia about the challenges Virtuse Group has faced in carbon trading.
He said, “We face a lot of challenges from Chinese government policies. Currently this industry is still very policy-driven. Without the support of the government it is very hard to bring it forward, yet all these big industries are lobbying with the government.
“We started covering Chinese emission markets in 2013. But since last year it came to a halt as the Chinese government has already achieved their emission targets through other means. They then decided not to mandate polluters to pay for what they pollute.
“That is why we want to bring carbon to blockchain and make it available for everyone to invest, not just entities. This will bring up the carbon price due to increasing demand from more investors. It will spread awareness to a wider audience and bring up the price of carbon so carbon trading can deter polluters.”
THE PATH FORWARD
Virtuse Exchange is launching its initial coin offering in June. To grow its community, it plans to carry out activities like “airdrops, bounty programs, working with crowdsource, e-commerce platforms, gaming platforms to increase awareness of Virtuse Exchange”, according to Chong.
The beta release of Virtuse Exchange will also be available in June to selective users for active trading.
Vasilisin said, “We want to tokenise assets that are not easily accessible to individuals as of now. There is unlimited potential as to how much value we can create.”