CyberTrust aims to help institutional investors capitalise on the unique opportunities that exist on the cryptocurrency market. The company is developing a new Open Securitization Platform, scheduled to launch in Q1 2018, which will securitize crypto assets and offer crypto securitization as a service for the first time in history.
Pooling cryptocurrencies into securities means that the community will be able to participate and act as a traditional custodial bank for crypto assets. It will empower institutional investors to diversify into crypto assets and to have access to traditional liquid markets with a marked reduction in trading settlement and clearing risks.
In November, CyberTrust successfully launched a pre-sale closed round of CABS token which received over $18 million USD, demonstrating high engagement from the user base. The token pre-sale is planned for November 29 2017 – January 5, 2018. Following the pre-sale, the ICO is planned for January 5, 2018.
The new CABS token will use the Ethereum blockchain and will be listed on major crypto exchanges. 600,000 tokens are to be sold in total at a base price of 0.6 ETH (approximately US$275) per token. Limited volume bonuses are available – up to 20% during the pre-sale and 15% during the ICO itself, which brings the average cost down even further.
As part of its Open Securitization Platform, CyberTrust will allow CABS token holders to convert their raw cryptocurrencies into Global Crypto Notes (GCNs) as a traditional investment vehicle. GCNs will be fully titled and auditable in collaboration with Ernst & Young as an auditor. One CABS token will permit the securitization of one Bitcoin or the equivalent quantity of 2 other cryptocurrencies at a cost of approximately 2-3%.
Global Crypto Notes will give their owners a legal claim to their assets, a critical feature which raw crypto doesn’t offer. Moreover, they can do this not only for Bitcoin, but also for Ethereum and Bitcoin Cash. Each GCN will carry an ISIN (International Securities Identification Number), allowing ownership and transfer via normal securities settlement channels.
GCNs will compete with shares of Grayscale’s Bitcoin Investment Trust (OTCQX: GBTC), which is currently the only bitcoin-based security available to institutional investors. As of early October, GBTC shares were trading at an 85-95% premium over the underlying net asset value.
Scott Freeman, CyberTrust’s CEO, underlined, “Given the long list of tokens on offer, it’s critical to differentiate yourself by offering a clear value proposition. This token stands out in the sense that its value has a clear benchmark, rather than being just a matter of speculation.
One CABS token permits its holder to securitize one BTC, and for that service the current market price is about $1800. When you compare this to our price of roughly $275, the arbitrage potential is pretty obvious.”
Evgeny Xata, CyberTrust’s Managing Director, commented, “Demand for cryptocurrencies on the part of institutional investors continues to far outstrip supply. Given the existing low levels of penetration and extremely limited supply, there remains enormous potential for continued exponential growth over the next five years. What is needed is a more flexible supply. Our new platform is designed to address this market demand.
This service will help to remove a number of key problems preventing institutional investors from taking full advantage of the cryptocurrency revolution. Moreover, by making securitized crypto more accessible, they will also provide the basis for a wide range of new derivative products such as 3x long BTC. We anticipate significant demand for these derivatives once they become available.”
CyberTrust is a financial services company providing sales, trading, research, and asset management services for institutional investors. It offers titled and auditable Global Crypto Notes as a traditional investment vehicle. The company’s mission is to open the crypto market to institutional investors who can use the Global Crypto Notes to buy, sell and short cryptocurrencies, as well as create derivative products.
CyberTrust’s leadership team includes Managing Director Evgeny Xata, founder of Russia’s largest digital publishing agency, Scott Freeman, CEO of the cryptocurrency exchange C2CX.com, and Chairman Nick Lustiger.
CyberTrust’s Board of Advisors includes William D. Delahunt, a former U.S. Representative for Massachusetts’s 10th congressional district, Marat Kichikov, the Managing Director of BitFury Capital, and David Gorodyansky, the CEO of AnchorFree Inc.