A few updates that I'd like to share...
Binance US, $1B: the team at Prime Trust is thrilled to see our customer, Binance America, top $1 billion in counter-party settlements of USD on our Prime Settlement Network. This was an important milestone set last Friday that validates…as well as stress tests…the features and technology we have built for exchanges, OTC desks, and alternative trading systems (ATS’). Last week we seamlessly handled 9,000,000 API requests on a 26ms response-time, with zero downtime and zero problems.
Escrow for Securities Offerings: we’ve handled over 700 new escrows for securities offerings this year. Some interesting data points: 506c is the most popular, followed by 506b, Reg S, Reg CF and then Reg A. With over $850,000,000 in funds processed for escrow this year, we see credit cards being the most common method of investing, followed closely by ACH. Wires are a very distant third (used mostly by institutional investors), followed by paper checks, then Bitcoin and, lastly, Ethereum.
Escrow for Secondary Transactions: we have increasing requests for transactional escrows. These come from exchanges and ATS’ who need us to settle transactions and protect both the buyer and seller, and from law firms who have special needs from customers with blockchain-based requirements. We are building an entire ecosystem to serve ATS and other customers in 2020 to frictionlessly settle trades of cash (any currency), crypto (any), and/or private securities between counter-parties (and, of course, we handle all IRS tax reporting obligations).
My vision of the future of capital markets is that private securities and real estate will be accessible on an unprecedented scale to the investing public thanks to blockchain technology and to next generation ATS’ and digital exchanges.
Updated API Doc’s: people have always said that we have really good API documentation. And that’s true. But we’ve made it even better and more developer-friendly than ever. This was a pretty big project that’s not only better for our tech-integrated customers but makes it easier on the team as we continue to evolve and add new features and services. Check it out at https://primetrust.com/apis
Widgets: writing into our extensive API stack takes a lot of time. This, for both the customer (integrator) and for Prime Trust, is the biggest gating factor in launching and driving success. It can take anywhere from a couple of months to over a year. Ouch. So my engineering team has created a powerful set of widgets for new account opening, AML/KYC compliance, credit/debit card transactions, and ACH transactions. These will enable fintech innovators to get launched in weeks, instead of months…accelerating their path to success.
note – it took my team almost 4 months to write into our own API’s to build these widgets, which shows just how complicated this is. And now we’ve made it easy.
Instant Settlement Technology: for our crypto customers and our crowdfunding customers the holy grail is “now”. Investors don’t want to wait until their ACH or credit card transaction is funded (which is next-business-day). They want to invest now. Not tomorrow. Right now. So with Binance as our beta customer, we built API-driven technology which enables them to settle a customer transaction instantly. It works beautifully and we are rolling it out as an option for our other customers.
Crypto Liquidity: we’ve run a fairly manual liquidity program for our securities escrow offerings for over a year, enabling investors to remit BTC or ETH to fund their real estate or crowdfunding investment, which we convert to US Dollars and put into the escrow account for them. Now we have exchanges and other financial app innovators who want to use our tech and need us to be the fiat on-and-offramp for crypto. To answer this call, we are integrating with some key OTC customers/counter-parties on the Prime Trust Settlement Network to provide instant, secure, 24/7 API-driven fiat-to-crypto and crypto-to-fiat services. This will be launched by the end of the month.
BSA Systems & Audit: we recently engaged an independent audit of our AML & KYC program, as required by our banking commissioner’s office thanks to the global nature of our customer base. For good measure we also engaged in a third-party security examination (former NORAD team that's well known in banking). These important steps help us stay on-point and continuously improve. Our compliance teams’ immediate initiatives are for new tools and automation to speed up AML for our Chinese, Korean, Japanese and other Asian customers.
Future: Prime Trust is the financial institution that is building the foundational, 24/7, technology-delivered “open banking” services needed for innovators and disrupters to create the future of democratized wealth generation. We have a full slate of projects on tap to deliver on this promise.
Nothing happens overnight, each of these services can take months to build and are a grind. Our success is earned, not given, and we make our own luck through persistence and focus. I love what we're doing together with our customers, partners, investors and employees.