Manage episode 285779016 series 2639859
Steven Walt, General Manager of Fabriik Markets describes the business as the digital assets service arm of the Bayesian-owned, Fabriik group. He highlights the company’s three major offerings - market making, liquidity provision and its OTC or over-the-counter desks.
“The focus of the company is trading” Steven says. As he points out, digital asset prices change every second. To address the volatility, clients are provided a stable fixed price of up to 15 minutes. This would essentially allow payment processors the ability to provide their customers time to transact.
“What we do is we use really outstanding algorithms ...to forecast volatility and fix the price of up to 15 minutes.”
Steven was talking to Charles Miller on this week’s CoinGeek Conversations podcast.
In addition to trading, Fabriik Markets is positioning itself to be a one-stop-shop for liquidity. Steven describes their liquidity plan as disruptive, stressing they will be the first in the space to temporarily absorb price risk.
Furthermore, Fabriik Markets takes great pride in their OTC desks. Also referred to by the company as a ‘white glove service,’ this is where they assist their clients in the buying and selling of digital assets. This type of service will be made available to institutions and individuals that are looking to make trades of $100,000 US or more.
Fabriik Markets’ OTC desks will have more to offer compared to others in the space, Steven explains. For instance, customers will be given more variations and approaches to execute an order.
“Most desks out there, they quote a single price which is also what we do, but what we plan to do as well is offering additional ways of entering into and exiting out of a position.”
Having worked in the traditional financial market, as well as the digital asset space, Steven notes, there are many similarities between the two industries.
“I think ultimately where the digital assets is right now is maybe where traditional asset was 20-30 years ago, it’s very early days in my opinion.”
In light of this, he believes a lot can be taken from the traditional assets space and applied to the digital assets space. One of them, is algorithm. At Fabriik, he says customers will be able to use some traditional algorithm but more catered toward the digital asset space. Ultimately, they want to build simple products that people understand.
“What’s familiar is what works the best.”
Charles and Steven also touched on other topics such as tokenization. This is where Bitcoin SV is believed to make an impact. As Steven explains, they see massive potential in the BSV blockchain when it comes to creating tokens.
Fabriik Markets has committed to dealing with decentralized digital assets, such as BSV, BTC and BCH.
“We believe there’s a lot of power that comes from the BSV ecosystem. The blockchain is extremely scalable. And we’ve chosen it, for example to support tokenization.”