Hong Kong Fintech Week Day 2: Future-Proofing Your Tech Stack for Digital Assets
By OSL Head of Distribution and Prime Matt Long
Digital assets will be rapidly adopted by traditional finance participants such as commercial banks, private banks, hedge funds and asset managers.
P&L owners, senior management and technology executives in large institutions will need ways to provide clients with access to this new, uncorrelated asset class. They will therefore also need to create the technology and operational infrastructure to support these products.
Five points determine the success of technology solution deployment, and allow firms to manage the integration and scoping of digital asset platforms:
- The use of financial institutional-grade IT security and elastic infrastructure, as well as KYC / AML and compliance frameworks
- Combination of tech packages – creation and integration of modular solutions will allow for rapid time to market and the ability to be early enough to capture market share and retain existing clients
- A fully-managed service – one that has been battle tested with regulators and institutions alike to provide peace of mind and creating operational efficiencies
- Continuous innovation – staying abreast of the latest technology and trends in the digital asset space and aligning to the regulatory and business climate
- On-going account management services – offering business process management, customer service and proven go-to-market strategies
Infrastructure requirements for the digital economy
Operating a secure and scalable digital asset platform is key to the digital economy. Front to back trading infrastructure with a highly performant and compliant exchange or brokerage capability, tied in with deep understanding of blockchain-based protocols to drive efficiencies in the clearing and settlement domain is vital for firms looking forward to the future.
Blending the knowledge and experience of a highly experienced team with cutting edge technology to develop offerings and infrastructure that cater for the digital age. Solutions designed around simple integration points, with APIs that are designed to work with partners to deliver the trading capability seamlessly.
Regulated institutions are intently focussed on the compliance functionality of the infrastructure used to deliver digital asset services to clients.
OSL’s SaaS solution supports institutional-grade AML, CTF, KYC, source of funds and market surveillance modules. Firms need to understand the business processes that are embedded in running a digital asset platform, and can benefit from working with a firm that focuses on a Compliance and Risk-based culture in this maturing asset class.
Firms looking to build a platform where they can apply proprietary technology and achieve significant customisation will find high establishment costs and lengthy production deployment times are prohibitive. By contrast, bringing in an experienced digital asset platform partner can lower implementation and ongoing running costs whilst providing a more time-efficient implementation schedule. Firms can apply proven technology to their services which require fewer resources and improve time to market for their digital asset platform.
OSL is Asia’s most comprehensive digital asset platform providing brokerage, exchange, software-as-a-service and insured custody solutions to professional investors.
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