The Solution

In practice, adapting the conventional asset management model generates a fund of digital assets, whereas, to upgrade the asset management infrastructure to be consistent with its nature of digital assets, we need an on-chain crypto-fund.

The implied assumption the existing projects have is that they can focus on one requirement at a time and solve the others later. We believe this will not work as the problems cannot be solved sequentially due to their dependence.

AlgoCellar created an integrated mechanism tackling all the requirements concurrently.

AlgoCellar combines cutting-edge ledger and on-chain transaction technology with traditional arbitrage ideas.

Investors can opt-in Fund Managers’ investment strategies while retaining full ownership of the underlying assets. Fund Managers are mere strategists whose only weapon is their expertise.

For financial institutions, this is interesting because it eliminates the need for all the intermediaries(Transfer Agents, Fund Administrators, Custodians, etc.) and service providers (Accountants, Auditors, etc.).

It truly represents the democratization of Asset Management, allowing boutique players to market their expertise directly to investors and to setting up a new structure with limited capital and time. In so doing, most of the Asset Management industry’s typical costs will become negligible. Investors will be able to maintain complete control over their assets and appraise managers fairly and transparently and as a result, have their assets managed most efficiently.

We believe that AlgoCellar will open the doors to a larger pool of people’s wealth to be invested in digital assets as part of the optimal allocation of their portfolios. This, in turn, will drive demand for these assets and further investments in blockchain-related applications and services, thus accelerating the arrival of the economy we envision.

Fund managers can directly distribute their expertise without costly and inefficient intermediaries.

Investors can subscribe and redeem directly and instantaneously to identify themselves for regulatory purposes and to prove to third parties ownership of assets and wealth.

We believe most if not all of the assets will be tokenized soon. Many blockchain-based projects, as well as standard banking projects, are working in this direction. Once stocks, bonds, real estate, ships, infrastructure, etc. will be tokenized, they will all get the benefits of the distributed ledgers (speed, immutability, control, etc.) but will inherit the constraints that digital assets have with respect to the traditional asset management framework and will all require a solution that encompasses the four problems highlighted in the Background section.