For a while now, there has been much talk about the tokenization of the investment banking space. However, it was not possible until now. Synthesis Bank, the first investment bank to be fully tokenized and decentralized has been launched. We wanted to be a part of history and reached out to Alejandro Estrada, the CEO of Synthesis Bank for questions. Here is what he had to say.
Alejandro Estrada CEO Synthesis Bank
Congratulations on your successful launch! What’s next for Synthesis Bank?
Thank you so much, In 30 days we are launching the first pre-sale stage of our STB token, we create a tradeable digital ERC20 token that represent a virtual share of synthesis bank.
The pre – sale of the token will take place from July 2021 to August 2021, followed by a public sale in October 2021. The total supply of tokens is 200 million STB, 150 million of which will be available for public sale.
Please, can you tell us how Synthesis Bank was formed?
Synthesis Bank has emerged from an idea that I had 2 years ago, my idea was to decentralize investment banking completely along with traditional banking and financial services to go to a full decentralization, a bank that has life within the Ethereum network, fully decentralized from traditional systems.
What are the problems that exist within and outside the cryptocurrency space that Synthesis Bank aims to solve?
The goal of this project is to eliminate operational and setup costs imposed by intermediaries on traditional banking and investment services, while maximizing transparency and liquidity for investors and allowing you to benefit from the growth and adoption of cryptocurrencies in the market.
Synthesis Bank is not a platform, but a fully functioning product, the world’s first tokenized investment bank with cryptocurrency, built on the Ethereum smart contract, which offers innovative solutions to existing problems in the investment world.
Please, can you tell us about the Synthesis Bank Token (STB)?
At the center of the bank is its own STB token, which is an ERC020 token representing a virtual stake in the bank. Token buyers will receive monthly dividends based on the results of the bank’s investments during this period.
50% of the profit received by the bank as a result of investment activities will be returned to the token holder in the form of USDT.
Another 30% will be reinvested in the synthesis bank, which, in turn, expands the assets under management and increases the price of the token.
The remaining 20% will be used for the Bank’s current operations, as well as for various administrative requirements, such as legal fees and accounting.
The fact is that usually the ownership of tokens brings income by increasing the value of their tokens. But in this case, there will be a monthly reward for the investment, and token holders will be notified through the Bank’s portfolio tracking system of incoming dividends.
Thus, the perception of investment banking in our world as a sport of rich or successful brokers making multi-million dollar transactions, and inaccessible to most people in our society, is changing with the advent of blockchain and with firms such as Synthesis Bank, which bring the benefits of investment banking.
What is the governance process for the Synthesis Bank ecosystem?
The tokens of our team are blocked for a period of 2 years and they gradually unlock, in this way we make sure that the team members they have been involved for at least 2 years in the project if they want to receive all the tokens. This is something that gives security to investors. It is also important to note that the company conducted an audit of CertiK, a well-known blockchain security firm.
Established in the Cayman Islands jurisdiction. The Caymans is popular international jurisdiction for the incorporation of investment funds The Cayman jurisdiction has seen a strong increase in private equity funds year on year over the past decade. The popularity of Cayman private equity funds has been fuelled by the increase in hedge fund managers growing into the private equity space and by the increased use of private equity funds to pursue distressed asset investments.
The Cayman limited liability company (LLC) was introduced last year as a flexible, tax-neutral low-cost vehicle with a corporate personality. The registration, due diligence and reporting requirements the procedures are closely aligned with existing anti-money laundering (AML/KYC) requirements to ensure that the use of Cayman vehicles structures remains a low cost option.
What are the various fund management strategies that are deployed within the Synthesis Bank ecosystem?
The mandate of investment for Synthesis Bank is focused on trading cryptocurrencies. While this can be a broad spectrum, we are specifically focused on those which will have a liquidity event in the near future so as to avoid being locked up.
Our team utilize a number of algorithms and API feeds to screen and shortlist Market demand and anticipated liquidity. From this point forward, our shortlist is examined, researched and calculated using a scoring system developed in-house.
We are specialist in High-frequency trading (HFT) a method of automated investing that uses algorithms to act upon pre-set indicators, signals and trends. It’s commonly used by big investment banks and market players who combine large order volumes with rapid executions.
High-frequency trading is a technique that involves specialized software and algorithms, high-end computers, low-latency internet access, and up-to-date market data to outperform all competition and enable unique strategies that would not otherwise be possible.
High Frequency Trading, or HFT, is a system in which algorithms and software perform multiple trades per second, offering a large number of benefits that are not available to regular traders. It has been around long before cryptocurrency and is believed to account for up to 80% of volume in certain asset markets. Now, however, it is becoming a major factor in the world of decentralized assets as more and more institutional investors begin to take notice.
What are your thoughts on the rapid expansion of the DeFi space?
This year, decentralized finance (DeFi) has proven to be a transformative sector for the cryptocurrency ecosystem and is also impacting global financial markets, as institutional investors are fascinated with the potential for high returns on crypto markets.
The cryptocurrency market now accounts for 2% of the global money supply, as the growth of DeFi and stablecoins points to a steady increase in their adoption in the next years , so I think the DEFI market is still in its infancy, there is a lot of development ahead. We at synthesis bank want to take the advantage and position yourself ahead of competitors.
How did you get involved with cryptocurrencies and their underlying technologies?
I have more than 12 years of experience in financial markets, I come from the fx market where I am trained as a professional in currency trading.
I was CEO of an HFT trading firm in BVI, which helped me a lot to learn about the latest trading technologies used by large banks and investment funds.
I got involved in the cryptocurrency market since 2014 when buy my first BTC, in 2018 I started testing and exploding HFT strategies in the crypto market getting solid profits until mid-2019 where the idea of developing synthesis bank came up.
What are your thoughts on the recent attempts to regulate cryptocurrencies?
Sounds very good to me, I am in favor of decentralization, but I believe that financial services should be regulated including cryptocurrencies this would give investors a layer of security, which would prevent the large number of scams out there in the industry.
Now that El-Salvador has accepted Bitcoin as legal tender, do you think that the mass adoption of cryptocurrencies and their underlying technologies has finally arrived? Please, can you tell us the reasons for your answer?
Mass adoption is here, we see it day by day, we see it on the news, now possible buy any good or service with cryptocurrency, I think we are going to the era of digital money and digital assets, fiat money will be obsolete in the not too distant future, the world is moving towards decentralization and not only in financial services.
What are the risk management strategies that you have deployed in operations?
Synthesis Bank has a focus on transparency and technology, relying on strict criteria which
guides the placement of funds within our portfolio.
We maintain the highest standards to ensure we maximize risk-adjusted portfolio returns.
Synthesis Bank risk manager is an algorithm which continuously monitors trade terminal and APIs for single or aggregated orders which exceed a trader defined maximum risk threshold.
With fully automatic with aggregation synthesis bank risk manager will monitor and automatically aggregate the profit/loss and order swap values for pairs with multiple orders. Eg. If the aggregated loss for all ETH/USDT positions is greater than say 2% of the current account equity the system will automatically close all the positions.
What are your plans for involving Generation Z in the Synthesis Bank project?
I think the new generations they will adopt very well, synthesis bank and its services, they are at the forefront of technology and especially in cryptocurrencies.
How can projects like Synthesis Bank bridge the gaps that exist in legacy financial systems?
Our name answers the question, synthesis bank , it is a synthesis a fusion where traditional financial services are synthesized with the blockchain technology.
Do you think the world is ready to go fully crypto? Where do you think we are going with the cryptocurrency space? Please, can you tell us the reasons for your answer?
As I mentioned earlier, Mass adoption is here and the world is moving towards decentralization and not only in financial services.
What advice can you give to anyone who wants to go into the cryptocurrency space?
Before making any investment, would recommend that seek professional advice along with the proper financial education.
What are the various benefits that Synthesis bank offers the world?
While traditional investments require high investments and a broker, or intermediary, Syntehsis Bank offers mass investment with minimal amounts.
Synthesis Bank eliminates the commission agent or broker by making all transactions cheaper.
Automatic transactions without the possibility of human error thanks to the use of artificial intelligence.
We use technology available to large banks and investment funds, which is at our disposal and at the service of small investors.
Do you have any plans to add other public blockchains distributed ledgers to the Synthesis Bank project?
It is something we are analyzing, we would have to see what would be the benefits for synthesis bank and if it is feasible to implement it , I think we will do it in the future, since it will give us the possibility of being a multichain bank and not only on the ethereum network.
Do you have any secrets you want to tell us? Care to spill the beans?
We are planning the road map for 2022 – 2023, and many new services are coming.
Our goal is the decentralization of all traditional financial services and merge them with blockchain technology.
If you had three wishes and a Genie that could make them come true, what would they be for Synthesis Bank?
Be the number 1 financial project in the blockchain ecosystem.
May our business have great long-term development.
Being able to meet the expectations of all investors with a Premium service.