edgewater digital technology...2019/06/04  · edgewater digital’s mission is to improve the...

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Edgewater Digital Technologies New York Chicago London Singapore Mexico City Santiago EDGEWATER DIGITAL www.edgewaterdigital.io [email protected] +1.312.766.3290 Introduction – June 2019 A Revolution in Digital Trading

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Page 1: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Edgewater Digital TechnologiesNew York Chicago London Singapore Mexico City Santiago

EDGEWATER

DIGITAL

www.edgewaterdigital.io

[email protected]

+1.312.766.3290Introduction – June 2019 A Revolution in Digital Trading

Page 2: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

The Investment Opportunity

COMPANY & OPPORTUNITY 02

EDGEWATER

DIGITAL

Edgewater Markets is launching a new company, Edgewater Digital, to establish a best-in-class crypto trading platform to meet the requirements of institutional money managers and traders globally.

Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency, enhancing price discovery and reducing transaction costs, by leveraging Edgewater Market’s proprietary technology, currency trading expertise and existing tier-1 relationships.

Edgewater Digital Security Token

• Equity ownership and profit sharing

• Listed on security token exchanges (planned)

• Automated compliance (smart contract)

• Interoperability across token assets (ERC20)

• Liquidity after required lock-up period

Page 3: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

The Edgewater Markets Advantage

HISTORY 03

EDGEWATER

DIGITAL

INSTITUTIONAL PLATFORM

• Low Impact Trading

• Algorithmic Execution

• Efficient, Secure Settlement

• Risk Mgmt & Portfolio Analytics

• Compliance & Reporting

EXISTING RELATIONSHIPS

• 300+ institutional customers

• Over 50 countries

• Global Vendors and Partners

PROPRIETARY TECHNOLOGY

• TCA

• OMS

• Matching Engine

• SOR

• CLOB

PROFESSIONAL SUPPORT

• 24/7/365 OTC Desk

• Multi-Lingual Live Support

• GUI and API

• Mobile Access

EXPERTISE

• Successful Electronic Currency Trading Business

• Institutional Market Focus

• Advanced Trading Technology

• Global Liquidity Management

GLOBAL NETWORK

• Data Centers: NY, LD, TK, MX

• Low-Latency Data Communications

▪ Founded in 2009

▪ 300+ institutional customers in over 50 countries

▪ Profitable track record

▪ Executing over $10 billion daily fiat trading volume

▪ Proprietary trading technology

▪ Global trading network with data centers in New York, London, Tokyo, Mexico City

▪ Experienced team of 65 professionals located in Europe, Asia, Latam and N America

▪ Edgewater Markets private equity partner FTV Capital

Page 4: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Edgewater Management Team

MANAGEMENT TEAM 04

EDGEWATER

DIGITAL

The Edgewater team has decades of experience in institutional trading, technology and global financial services management.

Members of our team have held senior roles at some of

the largest financial institutions in the world and many

have been early adopters of blockchain technology.

Since the company’s founding in 2009, the multi-lingual

Edgewater team has built a global network of

relationships with customers, partners and regulators

that has enabled them to sustain rapid growth and a high

level of success.

Skovran Schreder CEO

Alessandro Scarsini

President

Jeff JohnsonCOO

Jason Aubrey CTO

Alessandra Bozzo CAO

Michael NaylorBus Dev

Mike Johnson Development

Nate ArenchildRisk Mgmt

Michael SerpaLiquidity Mgmt

Shilpa Dubey Asia-Pacific

Emanuel Georgouras

Europe

Rob Sanchez Latam

Matthew Roszak Richard Rofe

Strategic Advisors

Page 5: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Crypto Market Opportunity

CRYPTOCURRENCY MARKET 05

EDGEWATER

DIGITAL

▪ Crypto’s extraordinary pace of innovation is forecast to allow crypto to surpass historical Fiat growth rates

▪ In December 2017, Crypto daily volume reached $50B1

highlighting crypto trading potential

▪ The Crypto market has been forecast to reach up to $2 Trillion ADV by 20272

▪ Fiat grew at over 60% CAGR from 1977 – 1987

▪ As a mature product, Fiat experienced 20%+ annual growth over the past 10+ years of tech innovation (“Electronification of FX” above)

▪ Growth of electronic trading created a multi-faceted array of firms with dozens of providers co-existing to provide institutional liquidity.1CoinMarketCap.com (April 2018); businessinsider.com 2Apply FX CAGR from 1977-1987 (61%) to recent Crypto ADV $30B

Page 6: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Large Orders are Expensive and Difficult to Execute

CURRENT LANDSCAPE 06

Excessive Risk

Lack of Depth

Fragmentation

Latency

Security Gaps

High Costs

Inefficient Execution

EXCHANGE 5 BUY 18 BTC

“Buy 100 BTC, market”

Exchange 1

BUY 22

BTCExchange 2

BUY 33

BTC

Exchange 3

BUY 27

BTC

Exchange 4

Missed it

4 orders, 4 confos

EDGEWATER

DIGITAL

Current Situation

Page 7: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Leveraging Existing Institutional Trading Technology

EDGEWATER SOLUTION 07

CRYPTO PRIME

TRADER™

1 order, 1 confo

“BUY 100 BTC, MARKET”

Fast, easy, low impact

EDGEWATER

DIGITAL

Our Solution

Best-in-Class Security

Institutional Size Orders

Global Aggregated Liquidity

Reduced Costs

Efficient, Secure Settlement

Low Impact Execution

24/7 Live Global Support

Page 8: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Introducing Crypto Prime Trader™

PRODUCT ECOSYSTEM

EDGEWATER

DIGITAL

08

POSITION MONITORING REAL TIME P&L

AGGREGATED LIQUIDITY

ADVANCED ANALYTICS AND CHARTING

CONSOLIDATED ORDER BOOK

INTELLIGENT TRADING ALGORITHMS

EFFICIENT, SECURE SETTLEMENT

SMART ORDERROUTER

WEB-BASED TRADING PLATFORM

CRYPTO MISSION CONTROL™

Page 9: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Best-in-Class Platform for Institutional Trading & Compliance • Exchange and OTC liquidity• Real-time P/L and trading algorithms

• Advanced analytics & charting

• Efficient, Secure Settlement

• Mobile Access

Crypto Prime TraderTM

PRODUCT OVERVIEW

EDGEWATER

DIGITAL

Product Ecosystem• Digital Limit Order Book TM

• Digital Exchange Gateway TM

• Crypto Mission Control TM

• 24/7 Live Multi-Lingual Support

09

Page 10: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Launch Crypto Prime Trader, Build Brand/Product Awareness

• Conference sponsorship: crypto focused and traditional institutional

• Media relations – digital and social media: EWC news and promotional commentary

Promote Trading Volume, Build Trader Loyalty

• Issue ERC-20 compliant utility token to incentivize platform use

• Provide discounts on fees linked to trading volume

MARKET ENTRY

Go To Market Strategy EDGEWATER

DIGITAL

Introduce CPT to EWM Customers

• Leverage existing EWM sales

• Cross-sales and referrals

• Target institutional customers: trading firms, hedge funds, retail and institutional brokers, fund managers, emerging market banks, developed market banks

Introduce CPT to Crypto HFs, OTC Desks and Exchanges

• Establish EWC sales force

• Over 300 crypto HFs – approximately 100 with over $10M AUM1

• 30-40+ OTC desks2

• 200+ crypto exchanges3

Establish OTC Trading Relationships

• Establish EWC OTC desk

• Provide 24/7 live professional support

• Establish liquidity and custody relationships

Expand Institutional Market

• Target currency traders, money managers (fund/ETF managers, pensions, endowments) and FOs

• Over 20% of institutional trading firms actively planning trading function4

• 22% of institutional investors have exposure to digital assets, 40% say they are open to investments5

10

1CryptoFundResearch.com

4Thomson Reuters Client Survey (April 2018)

2Medium: Cointastical/CMEgroup.com/EWM

3CoinMarketCap.com

5Fidelity/Greenwich Associates Institutional Survey (May 2019)

Page 11: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Q1 2019

Business Formation

Banking Relationships

Liquidity and Custody Connectivity (ongoing)

Crypto Prime Trader (CPT) Alpha Testing

Q2 2019

CPT Development: SOR, Smart Ticket, Algorithms, GUI design

Settlement/Custody

Crypto Mission Control

Private Placement Offering

Edgewater Digital Roadmap

PRODUCT ROADMAP

EDGEWATER

DIGITAL

11

Q3 2019CPT Credit, Risk Mgmt and Post-Trade Reporting

CPT Digital Order Book

EWD Market and Credit Operations

Product Launch

Q4 2019CPT Utility Token Loyalty Program

Mobile Development

Risk Management & Portfolio Analytics

STO Exchange Listing

Page 12: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Crypto Prime Trader Development Timeline

DEVELOPMENT TIMELINE

EDGEWATER

DIGITAL

12

➣ A – Connect customers with existing accounts, VWAP, smart execution

➣ B – Launch Edgewater Digital principal accounts, provide leveraged trading

➣ C – Launch Crypto Prime Trader Digital Order Book

Liquidity Sources

Customer Accounts

EWDT Principal Accounts

EWDT Digital Order Book

Rate Engine

Crypto Prime Trader

Smart Ticket

Smart Order Router

Customers

Pre-Trade Credit Check

Post-Trade

• Confirmation• Settlement• Credit • Custody• Reporting

EWDT Operations

• Market Risk• Credit Risk• Technology• Customer Svc

A

B

C

Page 13: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

An Established Brand with Superior Positioning

INVESTMENT SUMMARY

EDGEWATER

DIGITAL

Read More About our Company Success at: www.EdgewaterDigital.io

• Existing Institutional Customer Base

• Existing Profitable Business

• Proprietary trading technology

• Transaction fees based revenue model

• 10+ years experience in Institutional Trading

• Global trading network - New York, London, Tokyo, Mexico City

Decades of Experience Positioned to be Market Leader in Digital Assets

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Page 14: Edgewater Digital Technology...2019/06/04  · Edgewater Digital’s mission is to improve the efficiency of crypto asset trading for institutional customers, increasing transparency,

Thank You

New YorkEdgewater Digital Technologies Inc. 10 East 53rd Street, 12th FloorNew York, NY 10022Phone: +1-212-370-5270

ChicagoEdgewater Digital Technologies,111 West Illinois Street, 5th FloorChicago, IL 60654Phone : +1-312-766-3290

Email : [email protected]

EDGEWATER

DIGITAL