Xmonetae Capital Case Study
Copper can provide us - and will provide us - with the security we need to speak to our investors, with the security to ensure that our internal operations are running as they need to.
"Copper has the best product for what we do, and many of our investors won't invest unless Copper is the cryptocurrency custodian."
The philosophy of XMonetae Capital is to produce tremendous risk adjusted returns for our investors in a nascent, exciting space where we’re literally watching the birth of an asset class.
What XMonetae specifically does is fairly high-frequency, fairly high turnover quantitative trading. So we have to heavily rely upon algorithms and data collection to both analyse our strategies, measure the risk of those strategies and to execute those high frequency trades.
But at the same point in time we have a philosophy within our firm that you can’t have an over-reliance on automated models - especially again in this nascent ever-consolidating space where a major risk management concern is black swan events, things that have happened in this space that have never happened before.
XMonetae is different because of our team who has deep experience in this marketplace. It’s our man and machine philosophy which blends the rhythm and the music of market colour with quantitative data. And it’s our insistence in every aspect of our business on ultra-thorough risk management. That’s what separates us as a firm.
We chose to partner with Copper for three main reasons:
Number one, after a deep dive into the space, quite frankly we made the determination that they had the best product offering for what it is that we do.
Second of all, there was definitely an aspect of feeling good in dealing - in doing business - with the Copper folk. Copper has gone through a tremendous growth, and they’ve still been incredibly responsive to us, an early customer, as they’ve been going through that growth. And that’s something that we can’t say about everyone - every service provider - that we deal with.
You know, there’s a third aspect of it for us as well. You know as we grow, and as the market is starting to look at us as potentially one of those consolidating institutional investment managers in this space, there’s really something to be said for those who are viewed as the ‘A’ tier working together.
We grew up in the Walled Garden ecosystem. It assures that our assets get to and from exchange within that ecosystem, exactly how we need to without error. Which is incredibly important when you’re sending tremendous amounts of money. And Copper offers our investors the assurance that no singular person can remove capital from the ecosystem.
Now we are moving towards using more and more a ClearLoop solution. Essentially, within ClearLoop, we will be able to keep our assets firmly with Copper while we’re simply trading proxy capital on the exchanges which is really our number one risk.
As XMonetae continues to grow in this space, we expect to grow with Copper hand in hand. Copper can provide us - and will provide us - with the security we need to speak to our investors, with the security to ensure that our internal operations are running as they need to. And continue to build the tremendous direct relationship that we very much value with Copper.
With the type of investors we have, many of our investors won’t even invest unless Copper is the cryptocurrency custodian.
Copper is best in class at that and so we will continue to grow with Copper as we continue to grow as a firm.
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