Two ex-bankers have launched what they claim to be the UK’s first regulated digital asset trading platform and crypto exchange accessible to institutional investors.
They also said that the UK’s first native crypto exchange platform is on its way to become a reality.
Sovren Exchange, a venture founded by a team of London-based banking executives, has announced an ICO to begin Q3 of this year.
For the launch, Sovren (SVRN) is raising a maximum of $10m (combination of Equity Funding and its own Sovren Token) to create a hybrid order book and brokerage exchange platform that uses a trading engine supported by AI and Robotic Process Automation (RPA).
Sovren plans to have a fully compliant platform that will support trading in derivates, equities, commodities and securities. The platform will use intelligent automation to address liquidity challenges and a third party custodial service for additional protection with a European Bank.
Sovren is supporting trading between all major crypto assets and fiat currencies like pounds, euros, and dollars, aiming for same day service and low, flat trading fees.
Sovren said it is in the final stages of building the platform with plans to be fully regulated by the UK’s Financial Conduct Authority (FCA) and claimed it will be the first to do so. There is a strategic focus towards institutional investors and to provide an industrial grade platform that is regulated, compliant and transparent.
“London is one of the most innovative financial hubs in the world,” said Sovren co-founder and CEO Avijeet Jayashekhar. “Building, maintaining and regulating a cryptocurrency exchange here makes a lot of sense. We on the Sovren team have the experience necessary to approach that process from the outset, rather than as an afterthought.”
One such team members is Sovren co-founder and CTO Wynand de Jager, who is a member of the British Blockchain Association with over 15 years experience implementing disruptive technology in the financial industry.
“There are a lot of opportunities and possibilities in a decentralized ecosystem, not least of which is making finance more inclusive than it has ever been,” said Wynand. “To take part in the current crypto world, however, you need to be quite technical. We want to change that.”
To this end, Sovren plans on implementing many of the processes and tech that power modern digital banking.
“The banking business, especially on the retail side, is a very competitive industry. If banks had the kind of customer service crypto exchanges currently have, they wouldn’t last very long,” said Avijeet. “Most of the technology is there to make the improvements necessary but because of the decentralized nature of blockchain, they need to be implemented in a new way.”
Much of that technology revolves around automating processes with the help of AI and RPA.
“I spent a big part of my career building technology to improve the customer experience in banks and trading platforms like NASDAQ,” explained Avijeet. “When AI, Robotic Process Automation and Blockchain started emerging in early 2010, I got deeply involved in building businesses around them.”
Sovren plans on implementing AI and RPA to do tasks and said it has already proven successful at: performing customer service activities, recognizing and analyzing patterns in data to help traders make better decisions, and monitoring trading traffic to detect cyber threats.
“We will deliver customer service using emotionally intelligent chat AI and robotics to automate recurring functions in the front office, and back office such as customer onboarding, compliance, transaction processing, deactivation and activation of accounts and trading and settlement. This will significantly increase processing speed in comparison to most current crypto exchange operations,” explained Wynand. “We will of course also have real people overseeing, who will focus on high value tasks that can’t be easily solved by robotics.”