Giving people the capability to hold these coins themselves, Maximilian Schmidt founded CPI Technologies, a business that has helped several hedge funds gain exposure to cryptocurrencies
Also, in a fully secure way that’s easily adaptable around a fund’s current circumstances, this can be achieved without relying on external service providers.
Schmidt told Cointelegraph: “DeFi is more than a technical gimmick. It reveals one more time the disruptive power of blockchain technology. Banking, insurance, loans, hedge funds, exchanges — just a few examples of business types that can work fully decentralized. It’s only a matter of time until the big players have to decentralize their business cases as it will be the global standard.”
The executive says developing resilient internal infrastructure is the most important task for finance companies that want to offer crypto assets to their clients — and multi-signature wallets are commonly relied upon because they ensure that there isn’t a single point of failure. Crypto funds in a company can get lost or stolen if no proper internal infrastructure is set up.
According to CPI Technologies, full decentralization is another crucial attribute, as this ensures all investment and trading activities can happen within a smart contract. This intricately designed code can ensure that investment decision makers have the freedom to execute investment strategies and make allocation decisions. Here, human strategists or trading bots fueled by artificial intelligence can take control of the fund’s direction.
Blockchain technology ensures that hedge funds and other finance companies have the freedom to define how investors profit from the vehicle they have created. This can also deliver much-needed levels of transparency that aren’t always abundant in this sector. The decision making team can automatically receive a percentage of the gains that are accrued in the form of a management fee or success fee, and these costs can be visible to all investors because all activities take place on a public network