Adoption of crypto and cryptocurrency at large is inevitable.
In the words of Elon Musk, “I think Bitcoin is on the verge of getting broad acceptance by conventional finance people.” His sentiments alone sent Bitcoin soaring, increasing in value by 14%. As more financial institutions accept and adopt cryptocurrencies, various challenges arise that necessitate a bridge linking financial enterprises and crypto. Enter UNIDO.
UNIDO addresses the challenges of security, governance, and accessibility that asset management firms face as they opt to leverage the cryptocurrency industry. The platform gives financial institutions unparalleled access to decentralized finances (DeFi) opportunities while also offering seamless management of their crypto banking operations.
With emerging trends in financial markets, UNIDO’s services provide a fresh approach to asset management. Financial institutions will find their offerings tailored to their ever-evolving business needs.
Institutional Investment Has Exploded into Bitcoin and Cryptocurrency
True to predictions, Bitcoin saw a massive influx of institutional investors in 2020. The trend is likely to continue in 2021 as more institutions put their faith in the increasingly trustworthy digital currency. The figures poured into Bitcoin prove that the institutional investments are more than just a one-time occurrence.
For instance, through Grayscale alone, as reported by Forbes, over $90 million has been invested in Bitcoin. Other sources indicate that their investment could be upwards of $200 million. The figure pales compared to MicroStrategy’s Bitcoin investment as the business intelligence company owns over $1 billion in Bitcoin.
Aside from money, Bitcoin is also receiving investment in terms of credibility and trustworthiness. More companies are offering Bitcoin or crypto-related products and services showing their belief in cryptocurrency. Visa, PayPal, and Microsoft are some of the companies investing in the future of Bitcoin through their business.
Despite the Success, Many Hurdles Still Remain for HNW Investors
Enterprises seeking to invest in the cryptocurrency have had their fair share of challenges. Navigating the cryptocurrency industry can be confusing and sometimes even frustrating. In the worst cases, enterprises can easily drop their interest in crypto due to inadequate knowledge of the cryptocurrency industry.
Here are some of the major hurdles enterprises have faced and how UNIDO addresses them;
1. Lack of a proper Institutional grade trading platform
Unlike retail or individual investors, institutional investors need a platform that can cater to their emerging needs. For instance, institutional investors are used to making decisions based on their observation of the traditional markets. In the cryptocurrency market, some of the observational tools and analysis may not be sufficient as a source of data that can drive decision-making.
The elusiveness of this unfamiliar territory discouraged institutional investors, thus the need for a proper platform that can educate while also providing the necessary tools for institutional-grade trading. For example, a family seeking to invest in Bitcoin may have their doubts cleared where such firms on the trading platform are already involved.
Solution; its existence in the market is already a solution to enterprises. The UNIDO platform brings all the institutional cryptocurrency trading devices under one roof. Its features include a business banking portal where enterprises can manage their day-to-day operations through crypto payments, wallet management and governance customization. UNIDO also provides a DeFi vault in the form of a multi-signature (multi-sig) enterprise wallet where enterprises can store and manage crypto assets. It also incorporates a payment infrastructure necessary for daily operations.
Furthermore, UNIDO is powered by a highly scalable and interoperable system ensuring it can meet the demands of enterprise-grade trading.
With UNIDO, enterprises only have to sign up on the platform to access enterprise-grade institutional trading. For example, a cooperative society seeking to invest in cryptocurrency can select representatives to register for the platform and start trading immediately.
2. Accessibility to reasonably priced cryptocurrencies
Most institutional investments in Bitcoin have come through “middlemen” such as Grayscale. Such platforms charge a premium for cryptocurrency investments. For example, Grayscale currently charges a premium for all their Bitcoin and Ethereum funds. The option may not be economical for some institutions which may want to eliminate unnecessary costs. Moreover, users are subjected to the trading policies of the platform.
In the month of December, there was a period where trading on Bitcoin or Ethereum was halted by Grayscale. Restrictive moves such as these are part of the hurdles that discourage enterprises from pursuing Bitcoin investments.
Solution; UNIDO gives its users full access to DeFi options in the decentralized industry. Users of the platform can access trading options at reasonable prices without the exorbitant premium charged by other platforms.
Enterprises that may not meet the minimum investment requirements of other digital trading platforms can simply register with UNIDO and start trading with the capital they have in hand.
3. Control of digital assets
Traditional investment firms investing in crypto are doing so from a traditional perspective. Control of investments rests solely on them, a move that may not be ideal for most enterprises. Institutions require freedom and control of investments of their planned digital assets.
Solution; UNIDO does not control the investment options of its users. It gives them access to a trading market where they can opt into or out of any listed trade. The platform also features a governance model that gives power to the users of the platform. Users can dictate the platform’s future based on their agreements using the governance model in place.
Moreover, the excellent options offered by UNIDO give enterprises flexibility in terms of trading options. There are several cryptocurrencies enterprises can use on the platform. There are also multiple wallets that users can synchronize in the platform.
UNIDO further provides a cryptocurrency vault that is a feature of both convenience and security. Enterprises can give a specific person, a group, or the majority to make transaction decisions.
Further Applications
Through its intuitive design, UNIDO can provide more than just asset management solutions. Problems experienced in supply chain management can be solved using the core foundations of UNIDO, transparency and security. Various checks can be designed to give managers access to goods as they move to their destinations. This can positively impact farm to fork businesses as well.
Given that UNIDO is the brainchild of former multinational corporation personalities (such as Coca-Cola), its supply chain application does not surprise.
A Winning Formula
UNIDO combines security and seamless services to serve the needs of the emerging market. The platform is suited for both individual (retail) investors and corporate investors. It, therefore, creates an inclusive platform where trading is made possible and convenient through its services.
Its good works have not gone unnoticed, and there are productive partnerships on the horizon. DuckDAO is already on board and more are expected to join in. Another indicator of its probable success is the rumoured oversubscription of UNIDO’s (UDO) private sale, a sign of more to come.
You can find out more on UNIDO by visiting their website, Twitter or their Medium.
Disclaimer: Please only take this information as my OWN opinion and should not be regarded as financial advice in any situation. Please remember to DYOR before making any decisions.
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