Martin Gymer was involved in the early Foreign Exchange (FX) markets when there were no screens and only telephones to trade across. Prices were infrequent, volatile and prone to bad actors and market manipulation. His career extended into the complex world of derivatives covering the life cycle of FX from the “wild west” to highly liquid regulated structured products.
In the early nineties, whilst at First Chicago O’Connor and Associates JV (O’Connor went on to merge with SBC and UBS), derivatives were expanding exponentially due to the increase in computer chip speed giving traders the ability to risk manage large portfolios of these new products.
Bank customers started to demand these products. Banks did not have the expertise, or risk management software to risk manage these products. All the expertise in derivatives was in Chicago and every boutique business was soon bought by banks. This is a parallel to the new cryptocurrency markets and many of the emerging elements of the new market could be adopted by banks whose customers would demand these new products. Custodiex’s vision, in 2014, was for all Financial Products to move to the blockchain and for there to be an ever increasing trend towards tokenisation.
The major issues preventing financial institutions from adopting these new products was threefold – security risk, issues with speed of execution and the challenges around scalability.
Custodiex had the vision to create an institutional grade, digital vault technologies and a complete digital asset tech ecosystem that could store any asset on any blockchain that would operate in real-time.
The real-time aspect of the business was essential to mirror the work done by ITO/Merton/Black and Scholes whereby derivatives are calculated using continuous time. Real-time vaults would therefore be a necessity to move all financial products onto blockchains and to tokenise these assets.
This vision and pattern started to become a reality, as Custodiex began to receive increasing enquiries from leading financial institutions saying “we are putting our biggest investment in digital assets because our customers are demanding it.” The demand was finally here. It seems the crypto markets have mirrored the FX markets and the future will inevitably follow along the same path to liquid structured products.
Our Vision - World class combination of security, speed and scalability
Custodiex is at the forefront of digitised asset custody services and technology
Custodiex provides cold storage that’s usable in real- time, with unlimited scalability, and support for many specific storage regions across the globe
We believe this combination of security, speed, scalability and global coverage enables banks and financial institutions to unlock the potential of digital assets
In the future, financial products will convert to digital assets – and, in the world of digital assets, security is everything