asia’s leading digital asset and technology company · 2019-12-17 · executive summary • bc...
TRANSCRIPT
HKEX 863
Asia’s leading digital asset and technology company
For investors
Executive summary
• BC Group has Asia’s most comprehensive digital asset platform, OSL. It provides technology, brokerage, exchange and custody services
• The platform meets institutional standards of compliance, with transparent documented trading rules, 3rd party market surveillance and comprehensive coin purity AML verification
• As the region’s only listed, ‘Big Four’ audited digital assets and blockchain company, BC Group is in prime position to capture institutional inflows into the soon-to-be regulated market
• Through its best-in-class Software-as-a-Service (SaaS) technology, OSL has a unique distribution strategy allowing it access to multiple market segments and jurisdictions
• The company’s leadership team are pioneers in the digital asset sector, and have led successful projects and companies since entering the market in 2013
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Year Invented
Digital assets are virtual tokens that represent:• Store of value • Medium of exchange• Securities
Current Market Cap
Sources: HKEX website, Bank of International Settlement (BIS), The Institute of International Finance, CoinMarketCap as of Nov, 2019
US$7.6+ US$217+ US$73+ US$250+ US$4.66+US$192+
Opportunity to invest in the first new asset class in 30 years
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Bob Greifeld, Chairman & CEO of Nasdaq 2003-2016
100% of the stocks and bonds on Wall Street will be tokenized [in the next five years]
Regulation of blockchain and digital assets is a global trend
In June. 2018, the FATF released requirements for all of its 39 member jurisdictions to introduce licensing and SWIFT- like AML/CTF obligations.
This has led to the emergence of licensing frameworks for digital asset business as regulated financial intermediaries, providing access to traditional market players.
In Nov. 2019, the SFC created a regulatory framework to licence digital asset trading platforms in Hong Kong.
In Nov. 2019, the SFC issued a terms and conditions paper on digital asset management.
Japan was one of the earliest countries in advancing the regulations in digital assets.
In September of 2017, JFSA required all digital asset exchanges to obtain licenses. A total of 19 licenses have been granted to date.
Singapore is emerging as a global digital asset hub as MAS takes a supportive approach to regulations.
MAS applies existing legal frameworks where possible and is reported to be proactively working on creating a more robust framework.
The US has multiple regulatory bodies with oversight over digital assets, with additional clarity forthcoming from the SEC and CFTC.
State governments have also been proactive in establishing regulations. Regulations have invited the biggest financial players to enter the market.
In July 2018, the FCA included digital asset companies in regulatory sandbox and has been in consultation with traditional and digital asset players.
The FCA also provided clarity on AML/KYC requirements and tax-treatment.
In early 2018 the German Ministry of Finance confirmed digital assets as a legal method of payment and provided favourable tax treatment among EU.
Germany is engaging other EU markets to harmonize regulations.
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Traditional securities will convert to digital assets – growth will be massive
Global value by asset class, USD
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Anticipated growth of digital asset securities
$192BAppx size of the digital asset value today
Capturing 1% market share of the traditional asset classes over the next 5 years will translate into
57x of growth for digital assets
Real estate market$217 trillion
Fixed income$250 trillion
Derivatives market$544 trillionin notional value
Total: $1,161 trillion
*
Equity market$73 trillion
Est. size of the digital asset
securities market by 2024
$11 trillion+
FX market$77 trillionIn notional value
AdvertisingBusiness park management
services
TRADITIONAL BUSINESSESOSL - DIGITAL ASSET PLATFORM
CustodyExchangeBrokerage
BC Group structure and services strategic focus on digital assets
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The company and platform of choice for the digital asset economy
• Pioneers in digital assets and technology, building the next generation of Asia's capital markets
• Setting standards for performance, security and compliance
Asia’s first publicly listed digital asset company
(HKEX: 863)
Industry leading technology, including
one of the world’s fastest trading engines
Audited by a Big-Four accounting firm and
utilizes robust compliance and risk controls
First in Asia to launch insured custody
solutions for both cold and hot wallets
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&
Unique digital asset platform is institutionally focused and provides deep liquidity
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Digital Asset Platform
Brokerage
Custody
• OTC trading services built for institutions and professional investors• Spot trading• Intelligent Request for Quote (iRFQ) trading• iRFQ technology available as SaaS• Bespoke token services and secure wallets
• Proprietary security infrastructure for institutional-level safety• High-security vaults equipped with certified military grade technology, state-of-the-art encryption• 24/7 surveillance, dual control processes, • and private key protection in line with industry best practice• Insured hot and cold wallets
Exchange
• Secure and frictionless global trading of digital assets with deep liquidity• Multi-currency, multi-token• High standards of compliance, 24/7 live customer support• Compelling trading block sizes and tight spreads• Diverse retail and institutional flows• One of the world’s fastest trading engines• Exchange technology available as SaaS
platform users10+ signed corporate contracts around the
world
330k+ US$12 billionin platform
trading volume*Customers and partners in more
than 50 countries
*Annualized as of Nov. 2019
Digital asset platform highlights
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Delivering on our digital asset strategy
H1 2019 revenues up
29% YoYRMB85 million
Digital assets reached 49% of total revenue -
the Group’s largest revenue
contributor
Digital asset revenues up386% HoH to
RMB41.6 millionin H1 2019
Digital asset platform business was the main driver
of this growth
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Digital assets milestones & roadmap
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▪ First to submit application for SFC digital asset trading platform licence in Hong Kong
▪ Singapore office opened, token products offered
▪ Custody supported launch of Asia’s first bitcoin tracker fund – the Liberty Bitcoin Fund
▪ Signed white-label partnerships with MINE in Australia, and BitPrime in New Zealand
▪ Launched first-in-Asia insured digital custody service
▪ Launched next-gen digital asset exchange for professional investors
▪ Generated SaaS revenues of RMB2.1 million in H1 2019
▪ RMB39.5 million in trading services revenue for H1 2019
▪ Appointed Big-Four firm as independent auditor
▪ Launched the digital asset business with addition of 150 staff with expertise in the blockchain industry
▪ Launched digital asset trading service under the industry-leading OSL brand
▪ Established corporate and technical infrastructure for SaaS offering
▪ Secured strategic investment by the largest proprietary trading firm in the world
▪ Client acquisition focus
▪ Launch institutional banking white-label clients
▪ Increase institutional inflows as regulated entity
▪ Improve margins from increased scale
H2 2018 H1 2019 H2 2019 H1 2020 onwards
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Market leaders, with unrivalled global scope and capabilities
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SaaS (exchange and iRFQ)+ shared liquidity
Exchange
Insured custody
Brokerage + deep liquidity
Big 4 auditor appointed
Listed company
RFQ API
]]]][[]] ]]]][[]]
(#1 in Asia)
(via Remixpoint)
(#1 in Asia)
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Ken LoDeputy Chairman20+ years of experience as an entrepreneur and management consulting, including Verizon, BT, Accenture and the Bank of Montreal
Dave Chapman Executive Director
15+ years of experience in senior roles at HSBC, Credit Suisse, Barclays Capital, ABN AMRO and Bear Stearns
Julia Pang
20+ years of experience at international banks, including Standard Chartered, Citibank, ANZ and Banco Santander Asia Pacific
OSL Chief Operating Officer
Steve ZhangChief Financial Officer
15+ years of experience at leading technology and financial services firms including iTutorGroup, KingdeeInternational, HSBC and Macquarie
20+ years of experience at global leading organizations in financial services IT, including at HSBC and Merrill Lynch
Wayne Trench
Usman AhmadChief Information Officer
Marek Sikora
20+ years of experience in risk management institutions including as CRO of CLSA and Head of Risk Management at Calyon Asia
Chief Risk Officer
Hugh MaddenChief Executive Officer18+ years of experience in technology and finance, including with HSBC, CBA, State Street and Lloyd’s Bank
Nathan SimmonsChief Compliance Officer15+ years of experience specialized in financial legal affairs and compliance, including senior roles at Octagon Strategy, Nova Pacific Group, Dorsey & Whitney, HMRC and the Australian Government
Phillip Pon
20+ years of experience at leading finance and consulting firms including KKR, McKinsey & Company, GLG and Egon Zehnder
Chief Operating Officer
Gary Tiu Ka ChunHead of Regulatory Affairs
20+ years of experience as corporate legal counsel, including at Yunfeng Financial Group, Cantor Fitzgerald, Macquarie and CITIC Capital
20+ years of experience as an entrepreneur and in senior roles at Morgan Stanley and Macquarie Bank
OSL Chief Executive Officer
World-Class leadership team
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Mr. Johnson KoExecutive DirectorA securities industry veteran, Ko is also the Chairman of Reorient Financial Markets Limited and Deputy Chairman of HK-listed Frontier Services Group Limited
Lawrence Chia Non-Executive Director30+ years of experience in initial public offerings, mergers and acquisitions and corporate finance. Current CEO of the Samling Group of Companies, previously served as Greater China CEO for Deloitte.
Ken LoDeputy Chairman20+ years of experience as an entrepreneur and management consulting, including Verizon, BT, Accenture and the Bank of Montreal
Gary Tiu Ka Chun
20+ years of experience as corporate legal counsel, including at Yunfeng Financial Group, Cantor Fitzgerald, Macquarie and CITIC Capital
Executive DirectorMr. David Chau Non-Executive Director
CEO of CEN – 1 Partners Limited. Chau led the M&A division of Deloitte Hong Kong and is currently a member of the Hong Kong Securities Institute
Benedict Tai Non-Executive Director
MD and co-founder of Latitude Capital Group, Tai is a seasoned investment banker in the technology, media and teleco sectors
Dave Chapman
15+ years of experience in senior roles at HSBC, Credit Suisse, Barclays Capital, ABN AMRO and Bear Stearns
Executive DirectorHugh Madden
18+ years of experience in technology and finance, including with HSBC, CBA, State Street and Lloyd’s Bank
Executive Director
Board of directors
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Summary
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§ The financial services ecosystem is transforming and mass adoption of digital assets by retail and institutional investors is underway
§ OSL stands apart globally as the only professional, compliant platform positioned to access emerging and new digital asset revenue streams
The trusted gatekeeper to the digital asset economy
Industry leading AML / KYC and security
Insurance on digital assets by global leading provider
Comprehensive coin purity
Listed on HKEX
Audited by Big Four firm
Applied for SFC digital asset trading licence (additional applications forthcoming in other markets)
World’s fastest trading engine
Deep liquidity pools
Leading-edge white label SaaS
Digital asset pioneers
Leaders in financial services, technology and risk / compliance
Established board of directors with multi-sector expertise
Ahead of the curve in governance
Transparent, regulated Industry best technology and products
Unrivalled team of experts
Disclaimer
The information, statements and opinions contained in this document are confidential, legally privileged and intended solely for the individual or entity to whom they are addressed.This confidential overview (the “Overview”) has been prepared by BC Group (“BC Group” or the “Group”) solely for information purposes. This Overview contained herein has beenprepared to assist the recipient in deciding whether to proceed with further analysis of a potential transaction relating to the Group and does not purport to be all-inclusive or tocontain all of the information a prospective or existing recipient may desire. The Group reserves the right to amend to replace the Overview at any time, and undertakes no obligation toupdate the Overview or the provide the recipient with access to any additional information. In all cases, interested parties should conduct their own investigation and analysis of theGroup, its businesses, prospects, and financial conditions. The Group makes no representation or warranty, express or implied, as to the accuracy or completeness of this Overview orthe information contained herein, and shall have no liability for the information contained in, or any omissions from this Overview, or any of the written, electronic, or oralcommunication transmitted to the recipient as from the date of his or her receipt of this Overview. Each person should have make his or her own independent assessment of themerits of any transaction and should consult their own professional advisors. This Overview does not constitute an offer or invitation to subscribe for or purchase any securities, andneither this Overview nor anything contained herein shall form the basis of any contract or commitment whatsoever. The recipient shall hold the Group harmless of all liabilities,whether arising in contract, tort, or otherwise, for any losses, liabilities, damages, expenses, or costs arising, either direct or consequential, from or in connection with the use of thisOverview and/or the information herein.
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