Our CEO Yichen Wu was interviewed by Coinmotion in February 2021. The video of the interview is found here, going into broader detail on what is going on with digital lending markets, why Tesseract was founded and several other interesting topics.
In this article details we detail what we are actually doing with Coinmotion, summarizing original post from Coinmotion. Link to original article can be found here.
Digital asset backed lending gives benefits for all participants within the market. On one hand, it provides easy access to financing for digital asset borrowers. On the other hand, it provides new opportunities for substantial fixed-income type returns in the world of digital asset investment. Our partnership with Coinmotion connects these two sides and offers investors easy access to our proprietary investment product. Through Coinmotion services, individual cryptocurrency investors have a readily available access to this secure product and the latest emerging opportunities in digital asset backed finance.
Founded by Finnish cryptocurrency pioneers in 2012, Coinmotion was born out of a vision to empower regular people in controlling their money. The company’s mission is to create a complete financial ecosystem based on crypto, enabling people to use cryptocurrencies for all needs and in every situation. Among the EU’s first companies in their industry to be officially supervised, both Tesseract and Coinmotion’s asset storage systems received a 5AMLD virtual currency provider licence from the FIN-FSA in 2019.
Tesseract has partnered with Coinmotion since 2018 to provide Coinmotion customers some of the latest technological solutions in the field. The partnership has brought the benefits of Tesseract’s pioneering instruments to Finnish cryptocurrency space more readily available than ever before. Through Tesseract services, the customers of Coinmotion have a privileged access to the latest emerging opportunities in digital asset backed finance.
For their investment, an investor accrues interest for the borrowed cryptocurrency on a daily basis, until the borrowed funds are fully or partially withdrawn. Tesseract re-negotiates rates on a regular basis to provide the highest possible return on your investment.
High yield. Interest rates offered by Tesseract’s investment products achieve constantly higher returns over conventional collateralized debt obligations.
Insignificant capital risks. Overcollateralization acts as your safeguard against market shocks in crypto (collateral against the loan) prices: the overcollateralization mechanism works so that the risks associated with crypto’s high volatility are born mainly by the borrower and not the lender (among others, Coinmotion customers).
Diminished security risks. We deal only with reputable institutional digital asset borrowers backed by proven track records and sound balance sheets. Stringent anti-money laundering measures are also put into place and investors’ capital is guarded by state-of-the-art security set up. Our mission is to give our customers peace of mind over their investments.
Portfolio diversification. Crypto markets offer a convenient and effective way of diversifying one’s portfolio. Akin to investing in gold, digital assets have historically had a low correlation with other indexes (e.g. equity and bonds) and as such form a natural buffer against volatility in conventional asset markets.
Regulated and supervised operations. Tesseract’s business operations and products as well as Coinmotion’s storage systems in digital assets are both licensed by the Finnish Financial Supervisory Authority (Finanssivalvonta). We adhere to the highest standards of the EU’s 5th Anti-Money Laundering Directive and aim to promote trust and transparency in the digital asset industry.