Crowdfund Insider | JD Alois | Apr 4, 2018

Last month, the TMX Group (the operator of the Toronto Stock Exchange) announced that its subsidiary, Shorcan Digital Currency Network, will be working with Paycase Financial to launch a new cryptocurrency brokerage service iniitially focused on Bitcoin and Ether. Shorcan DCN is expected to launch at some point in the second quarter of 2018.

Paycase Financial is Toronto based Fintech that is “most widely known for their mobile-first remittance platform.” Paycase describes itself as follows:

“[We] are the #1 trusted value network for decentralized financial services. A FINTRAC-registered money service business (MSB) since 2015, Paycase is paving the way for traditional financial industries to understand insights and integrate the Blockchain ecosystem within their own. We bridge the divide between the fiat and crypto markets by providing liquidity and infrastructure while adding transparency to new blockchain technologies. We are the trusted and compliant gateway to help businesses understand and confidently invest in cryptocurrencies. We foster relationships with leading companies and regulators in both markets to assure compliance and trust for our partners.”

At the time of the announcement, TMX Group said that Shorcan DCN represents a significant step forward in the execution of their digital strategy.  TMX will continue to explore new ways to evolve and address the needs of clients, in both traditional and non-traditional markets.

While critics and advocates remain locked in debate as to the future of cryptocurrency including Bitcoin and Ether, the more traditional financial services embrace these digital assets the harder it becomes to put the genie back in the bottle.

Crowdfund Insider reached out Paycase Financial to learn more about their partnership with TMX. We are sharing out discussion with Paycase Financial CEO Joseph Weinberg and Zach Justein, Paycase’s Head of Business Development & Legal Affairs, below.

What was the genesis for you launching Paycase Financial? What are the services you currently offer?

Joseph Weinberg: At Paycase Financial, we think locally and act globally. This is the genesis of the company. I lived in the Peruvian Amazon with people who lived on five dollars a day. I learnt first-hand what it was like to not be financially included. So our mission became a question of: “What would the world look like if we could provide financial services to the world’s underserved?”

In order to do that, in the context of Blockchain, it’s about building and incorporating distributed systems and services together to create a decoupled digital bank.

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Paycase’s ultimate goal is to lower the barriers to entry for financial services and capital on a global basis. Much like how Tesla continues to provide more efficient ways to store and use energy and make energy accessible to the world, we want to unlock and maximize the value of capital for everyone. We begin doing this by first providing efficient market infrastructure and liquidity products to markets that require them. Eventually, we’ll be able to connect the currently disjoined system to create a global value network.

Paycase Financial currently offers:

• Paycase Remit – an online remittance platform that allows users to send money from Canada to Philippines for a fraction of the industry standard cost.
• Shyft Network – Shyft is a product aimed at solving the inefficiencies around KYC, AML and Identity on a global scale.
• OTC Services – Our partnership with TMX.

How did your new partnership come about with TMX Group? How long did it take to hammer out the details?

Zach Justein: The partnership came about very naturally.

We were introduced through a mutual connection and right away realized we could do something special together.  We met the rest of the team over the course of several meetings, during which we would concretize our plans while continuously developing new ideas.  It took a few months to hammer out the details, which is very reasonable considering the scope of these projects and the need to move quickly in this space.

What are the benefits of creating a full service brokerage? You will launch by enabling BTC and ETH trades. What about other cryptocurrencies?

Joseph Weinberg: We expect the brokerage desk to be operational in the second quarter of this year, initially offering Bitcoin and Ether, and likely extending into broader currency pairs based on demand.

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We also have our recently announced data product for indices and benchmarking. This data division is designed to introduce new data products that focus on the intersection of cryptocurrencies and institutions.

How long did the regulatory process take?

Zach Justein: The regulatory process differs between each of the projects and teams, so it is an ongoing consideration for everyone.

What time of demand / volume do you expect? Do you have a lot of institutional interest?

Zach Justein: The industry is constantly evolving and sparking the interest of new groups every day seeking access and exposure to cryptocurrencies through a trusted source, which this partnership is able to offer. We have already been approached by a number of interested buyers and sellers, mostly institutional, and expect a large amount of volume when the desk is launched with rapid increases throughout the year.  This become even more exciting as we extend globally and expand our cryptocurrency offerings.

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The National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding, alternative finance, fintech, P2P, ICO, and online investing stakeholders across the country. NCFA Canada provides education, research, industry stewardship, and networking opportunities to over 1600+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry in Canada.  For more information, please visit:  ncfacanada.org