Advancing institutional investors with Coinhako

Singapore — Having established a reliable reputation through serving the crypto community since 2014, Coinhako is venturing into the global institutional market with the launch of Coinhako Treasures. Through institutional offerings including a variety of structured products and quantitative investment strategies (QIS), Coinhako Treasures will empower and deliver sophisticated engagement for institutional and high-net worth (HNW) clients in the crypto space.

Providing users access to the crypto-economy for almost a decade, Coinhako’s platform has been well-regarded as a reliable and secure platform for users to buy, sell, and trade cryptocurrencies. This decade-long exposure to the crypto market has equipped Coinhako with valuable experience and data to develop structured products and QIS that are tailored to institutional investors. This development is supported by the recent uptake in interest and adoption of crypto from institutions.

Yusho Liu, Coinhako Co-founder and CEO shares, “We have been using this crypto down-time as an opportunity to build on Coinhako’s institutional services. We are seeing increased interest in this vertical and we are well positioned to provide quality service alongside sophisticated offerings. Our regulatory-compliant processes and continual bolstering of our existing infrastructure have been strategic in our advancements in the institutional space.”

“Through our commitment to security and reliability, institutional investors can have the assurance and confidence in participating in the crypto industry. We believe institutional flows into the market will continue to grow and serve as a crucial driver for future crypto innovation and adoption,” adds Yusho.

Evolving Landscape

In the first half of 2022, Coinhako’s institutional investors’ trading volume was up by 300% compared to H1 2021. Additionally, despite the volatility in both traditional and crypto markets in 2022, Coinhako recorded a 50% increase in the average trade amount from institutional investors between January 2022 and June 2022.

This positive trend reflects Coinhako’s strong fundamentals and long-standing reputation for reliability, its stringent regulatory-compliance operations, and the opportunities in the market;  all of which supports the company’s commitment to serving the institutional space with its new structured products and quantitative investment strategies.

Advanced Crypto Trading Offerings

Coinhako Treasures, the company’s institutional arm, presents a comprehensive suite of Structured Products that cater to the needs of institutional and HNW clients. These structured products offer a safer avenue to generate enhanced yield on digital assets via the monetization of the underlying cryptocurrency volatility, which is comparatively higher compared to the other traditional assets.

“These structures will be familiar to our clients as they are also being offered in the trad-fi space. With the launch of these institutional products, we are taking a risk-adjusted return approach with our goal of growing our institutional clients’ assets values over the long term,” says Kelvin See, Head of Trading of Coinhako.

In addition, Coinhako’s quant team is developing various Quantitative Investment Strategies (QIS) to generate enhanced alpha for its institutional investors in the crypto space. The pipeline also includes additional structured products such as Principal Protected Crypto Notes to provide principal protection and exposure to crypto assets for a stipulated period, as well as Crypto Index Funds that will serve as one-stop investment vehicles for broad exposure to the crypto market.

Safeguards and Security

Adopting a compliance-first approach since day one, Coinhako has remained steadfast in its commitment to providing a secure and reliable platform to access the crypto-economy. In May 2022, Coinhako was granted a Major Payment Institution (“MPI”) licence by the Monetary Authority of Singapore to provide Digital Payment Token Services in Singapore. The accreditation from regulators reaffirms Coinhako’s commitment to delivering crypto and trading expertise in a regulatory-compliant manner for institutional clients.

As the leading cryptocurrency platform in Singapore and the APAC region, Coinhako has made strides in building and implementing a robust infrastructure, matched with comprehensive security measures to protect against cyber threats and attacks.

Partnering with Fireblocks, market leading infrastructure provider for digital assets, Coinhako has on board enterprise-grade custody solutions for institutional clients, providing them with a peace of mind while they access Coinhako's deep liquidity and various crypto financial products.

Additional cybersecurity measures include engaging reputable Managed Detection & Response (MDR) services to have continuous threat monitoring and proactive threat analyzation, adopting a Zero-Trust Architecture to improve the company’s security posture, and utilizing Threat Intelligence (TI) tools to collect and process contextual information to mitigate cybersecurity threats.

Crypto Outlook

2022 market conditions have been volatile and uncertain, and this bearish sentiment has been permeating through sectors including equities, commodities, and crypto. While it is a challenging time for industry players and investors, it can be beneficial for the crypto space as crypto projects and companies are compelled to strengthen their fundamentals, and boost their intrinsic value to clients.

Tailwinds for institutions’ increased confidence and assurance in crypto space include continual maturation of the crypto market, and increasing participation from regulators in drafting regulations and policies to guide and govern the digital assets space. While the current volatility might reflect the near-term bearish outlook on the crypto market and investing in general, institutions’ growing awareness and interest in crypto are indicative of long-term structural demand for crypto and its technology.