[Blockchain in SEA] How to access multiple asset classes through Bitcoin
The full text is a total of 1988 words, expected to read 5 minutes.
Time: 17:10 GMT+8, 26th August
Wechat group: BlockChain-in-SEA
Guest: Mr. Tanuj Bathla，the business lead of XP Invest
Host: Andy Zheng, Beecast CEO
Andy Zheng: Welcome to the leading blockchain community media [Beecast] and join us with 5000+ communities & 1000000+ Beecasters in [Blockchain in SEA] to discuss blockchain technology and industry development.
This is the phase 30
Topic: How to access multiple asset classes through Bitcoin
Guest: Tanuj Bathla
Andy Zheng: Please introduce yourself and XP invest for us.
Tanuj Bathla：I started my career in corporate banking in asia after which I moved to silicon valley to work in the tech industry, silicon valey was truly an eye opening experience. Moving from corporate world to a fast paced startup was like being teleported to another planet.
I helped the firm scale their on-demand knowledge platform. I always had plans of coming back to Asia. I came back for my MBA at the University of Hong Kong after which I joined the Fintech space. It was the marriage of my old worlds, banking and tech. I've worked as a product manager building trading products in crypto and equity.
After noticing a market opportunity I decided to spin out XP Invest. Fortunately, my old company Finfabrik liked the idea so much they decided to incubate us. Worked out well :)
XP Invest is a trading platform where you can access commodities, equities and cryptos from a single trading venue. The best part is that all the settlement happens in Bitcoin so you never need to cash out of your BTC. You can short the equity market with your BTC, or long Gold. OK
Andy Zheng: What makes you to start XP invest?
Tanuj Bathla：The idea for XP Invest came when I saw the value of my portfolio just evaporate with the market crash. Although it is possible for people to invest in different asset classes and diversify, there always a lag time for on/off ramp between different assets. I wanted to do it all from a single venue."
We also noticed that crypto traders did not want to cash out of their BTC (for a general distrust of traditional markets) and not everyone I spoke too liked holding on to USDT. This is what made us want to create a single platform where people can trade multiple assets without cashing out BTC. The response so far has been quite positive, yes people have raised some questions but that is usually the case when you try to do something different. I take it as a compliment that people are actually interested in the product. OK"
Andy Zheng: What is the biggest difference between XP invest and other trading platforms?
Tanuj Bathla：XP Invest is still new to the market and we have a huge checklist that we want to complete. Our uniqueness definitely begins with the fact that you can use us to short the equity market with your Bitcoin or go long on Gold/Silver or Oil without cashing out of crypto. "
Another important differentiator is the strength of our group companies. They are currently working on tokenisation projects for unique assets that they will be listing exclusively on XP Invest. I believe this is going to be another key differentiator"
We will be listing unique assets that are not only not available on other exchanges, but difficult to access in general. Imagine purchasing a token of a building using your Bitcoin! That’s what we want to enable! "
Andy Zheng: Why do you think there is demand of trading commodities with bitcoin? What’s the problems of trading with fiat?
Tanuj Bathla：I don't think there is a problem with trading in fiat, people have been doing it for many years and it works just fine. This is more to help tackle the problem of people not wanting to cash out of their BTC. Given the potential upside of holding it in the long run (we all have our fingers crossed in this group I'm sure)"
It also opens up the commodities market to individuals that might have otherwise never traded oil, coffee or gold. I started noticing a trend in the summer, every time there was a tweet on the trade war the equity markets crashed and BTC/USD went up a little bit"
It's great if people are diversified and holding on to a bit of both. I think it's even better if you can hold one asset and use it to short the other. Thereby amplify your earnings. Especially since we introduced leverage trading on our platform earlier this month."
Andy Zheng: What is the relation between XP Invest and FinFabrik?
Tanuj Bathla：FinFabrik is incubating XP Invest by providing us technical and operational support. As I previously mentioned, we also take advantage of the products offered by other FinFabrik. One of the services includes quantitative trading and market making. They have been very helpful for us in pricing the different trading pairs that you see on the platform today.
The other services include tokenisation projects which will help us create offerings exclusive to XP Invest.
Andy Zheng: What are the industries of the pairs that XP Invest owns most currently? And what is the reason that those industries having more pairs than others?
Tanuj Bathla：indices and commonly traded commodities. The first pair we listed was NDX/BTC (Nasdaq100 index vs. Bitcoin). This is because NDX is a good representation of the US equity market and is also one of the more volatile indices compared to S&P500 or Dow Jones, this makes it more attractive to traders"
We are also listing commodities based on interesting macro economic developments taking place. For example- we listed Cocoa (chocolate) because two major exporting countries have introduced a price floor. This should theoretically see the price go up in the long run. Another interesting factor is that there has been an oversupply in coffee"
This should see the price of coffee beans stay suppressed which created a good opportunity to short it. In the future, we plan on listing other unique investable assets such as wine, art, real estate or even movie rights. These pairs will be driven to a large extent by regulations, partners that we work with and of course customer demand"
Imagine being able to trade or buy the token of a single building, thats the kind of diversity that we are looking to offer. OK"
Andy Zheng: Do you have any clear plan for XP Invest the coming year? And what kinds of business partners that you looking for to make your plan came true?
Tanuj Bathla：Yes, our plans are very clear. We are going to be adding several more trading pairs to the platform and improving the features that we already have. We have a very user centric approach to development, for those of you that have used the platform will know that you can vote for the pairs that wish to see added and made tradeable."
We plan on introducing more Equity indices (US & Asian) and single stock trading pairs as well. We will be increasing the leverage offered on the platform from 5x to much much more. We will also be increasing the trading hours when the platform is accessible. We already offer extended trading hours vs. what you see in the regular markets but our goal is to keep it open 24/7. "
Although you’re not trading crypto to crypto- you should be able to access it as if you were trading crypto to crypto :). We have our own roadmap but don't want to build on assumptions. This is why we are keen on having more such community interactions"
Edith: The stock market is very big and the fluctuations of the market rule are within a certain range, but the digital currency seems to be more bubbly. What kind of combination of the two can make users believe more?
Tanuj Bathla：For the earlier question, it really depends on the trading pair. For example Bitcoin is more volatile than NDX, but when you look at commodities they are also volatile. It depends on macro economic factors and more specifically on the exact pair that you look at. Example- as I mentioned earlier, whenever there is a tweet on the trade war you see the Nasdaq index crashing. BTC is usually stable or becomes positive (not always 100% the case but we did notice this on multiple ocassions)"
Remy: Just wondering why using same brand name of big corporate company, branding it will be confusing . Aka XP Investimentos from Brasil"
Second，how you will deal with regulation and custody of equities for foreigners users ? How about countries than ban Bitcoin but not fiat money, will they able to do fiat/commodities then exchange to commodities to BTC "
Do you have compliance team to handle all varies countries regulation regarding such swing investments ?"
Tanuj Bathla：interesting question again. In the beginning we are only offering onboarding through Bitcoin. Once we are inducted into the sandbox where we have applied we will create a new bank account to allow fiat on-boarding as well. We have been working closely with a legal team to ensure that we abide by the regulations of the jurisdiction where we are entering the sandbox. Once we start fiat yes we will need to add additional layers and potentially restrict users. "
We do full KYC of users from the very beginning for 'Live' accounts because we need to be compliant, so the laws are something that we will follow very carefully. "
When you trade on XP Invest you don't have ownership of the equity or commodity, you merely have exposure to the asset and can benefit from the price movement of the pairs"
Anna: My question is As a senior digital economics expert, what do you think is the biggest obstacle to restricting blockchain technology breakthroughs and application landing?
Tanuj Bathla：well I'm certainly not an expert :) I think today, there are private and public blockchains which are very useful to cover different use cases. When you look at financial services, its tough to host client data on public blockchains, financial services institutions might have restrictions on doing it. So I think its really use case specific. Blockchain is being adopted widely, cryptocurrencies will have multiple blockers. "
You try searching for this "do you need blockchain flowchart" Very interesting resut :)"
Andy Zheng: Due to the time, we have to end today's online interview.
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