Hehmeyer Buying and selling + Investments, the commodities funding agency, is pivoting to crypto full-time.
The Chicago-based firm, which started providing cryptocurrency companies in 2017, will now focus solely on being a market maker and algorithmic dealer within the area, rebranding to Hehmeyer within the course of.
This implies the corporate will now not offer its previous brokerage companies, prop buying and selling, commodity pool or buying and selling advisor companies. Founder and CEO Chris Hehmeyer instructed Fintech Zoom that he finds the cryptocurrency and blockchain area dynamic, and believes it will possibly result in new kinds of merchandise folks couldn’t dream of earlier than, pointing to decentralized finance (DeFi) as one instance.
However to Hehmeyer, a longtime main participant within the U.S. futures and commodities trade, it’s the potential for eradicating trusted third events that appears to be the key draw.
“I hope to see people liberated from the burdens of intermediaries and liberated in their interactions with other people,” he mentioned. “I think it allows people to have more control of their lives and their assets. And I think it creates equity between people. I think people will have more ability to interact and we call it liberating interaction. And so I hope to see a world where people are liberated from having to use extensive intermediaries.”
He mentioned his firm will solely have a look at market making on exchanges and counterparties in the meanwhile, however his agency is taking a look at “some of the possibilities out there.”
“We’re of the opinion, what [people in the space] really need over time is not just an exchange … they need market makers and so we think the market maker can stay in the game and not be disintermediated because what people will need is, they’ll need a market or a price,” he mentioned.
As a market maker, Hehmeyer (the corporate) nonetheless wants to stay in compliance with relevant legal guidelines and rules, however Hehmeyer (the founder) famous that since his agency doesn’t maintain or transmit shoppers’ funds, this largely means making certain the corporate is in compliance with know-your-customer and anti-money laundering guidelines, fairly than in search of out cash transmission licenses.
“We have a couple of subsidiaries overseas and we have to be careful to make sure we’re not doing stuff from the U.S. that we’re not supposed to be,” he mentioned.
Hehmeyer mentioned he needed to be a part of the liberating of transactions for people, although he expects this to take time. Initially, regulated custodians could be the best on-ramps for entities to get into the crypto area.
“It sort of looks like to me … the custodian business and prime broker business is the one that is set to accommodate the movement into the space. Tagomi went for a big price, these custodians are gaining assets,” he mentioned. “So the BitGos and the Prime Trusts are in a good position to accommodate the way finance has traditionally worked, and that is with a trusted third party.”
The crypto area continues to be within the infrastructure-building part, he mentioned. Firms like Constancy Digital Property have entered the area, and central banks are contemplating issuing or working with digital currencies, which is a begin.
Institutional buyers have been gradual to embrace crypto, however as corporations evolve to supply extra companies, “things can start to happen really fast.”
“We’re a ways away but the PayPal and Fidelity are working to accommodate it,” he mentioned.
These third events could be the purpose of entry for establishments and main buyers, however in Hehmeyer’s view, “the dynamic part” of the areas comes from the potential profit to people.
His firm may also help people and entities with this by making a market that may let folks transfer digital belongings out and in – with out having to personal the belongings themselves, Hehmeyer mentioned.
“People can meet and create smart contracts and products and deal and settle on a peer-to-peer basis which is what the technology enables,” he mentioned. “The whole system liberates everybody to interact in ways that they had never been able to do before. And that’s the part that inspires our little company, is a being a part of that.”
The chief in blockchain information, Fintech Zoom is a media outlet that strives for the very best journalistic requirements and abides by a strict set of editorial insurance policies. Fintech Zoom is an unbiased working subsidiary of Digital Forex Group, which invests in cryptocurrencies and blockchain startups.