Global Reach for a Global Mission: Custody & Clearing Services

Global Reach for a Global Mission: Custody & Clearing Services

Part III of our Strategy Series with Ethos Chief Global Strategist, Stephen Corliss


Today the Ethos Investment Committee is excited to announce that Ethos will be expanding the initial focus of our Global Strategic Partner Program to include market participants offering Custody & Clearing Services across Europe, Africa, South America, Asia & Australia – to provide essential crypto, traditional and fiat asset custody services to our global user community as part of Ethos’ mission to unlock the New Economy on a global scale.

As many of you are aware, Ethos is on track to deliver our first release, the Universal Wallet, in Q1 2018. We are very excited for this release as our wallet will create the foundation for a new financial ecosystem powered by the ETHOS token. The initial phase of this overall mission focuses on delivering a global multi-asset wealth management solution that seamlessly connects consumers with investment advisors, wealth managers, broker dealers, custodians, digital asset exchanges, merchants and developers — to make wealth management accessible to all.

In support of the existing efforts that are well underway with regards to our US Custody partner contract negotiations, the Ethos Investment Committee is expanding our global selection process for providers of Custody and Clearing Technology and/or Services internationally. Broadening our search internationally is an essential component of the overall program as it allows Ethos to locate valuable partners able to provide diverse asset servicing capabilities to serve the Ethos member community in those regions who need it most.

Partners through this program will also be expected to enhance, support or advance Ethos’ own transformative “Cognitive Advisor” offering, while providing our retail and business users with new dynamic and secure hybrid capabilities spanning cryptocurrencies, traditional and fiat assets covering global markets. Ethos will also be collaborating with key Custodian partners to help define and build both the legal and technology requirements for crypto asset custody to meet the demands of the Ethos Community.

We’re excited to continue to progress these efforts forward on all fronts as we move closer to delivering a transformative new financial ecosystem — powered by cutting edge tech, a functional token, and innovative partnerships.

Why is this important to the Ethos Platform?

As a financial ecosystem, Ethos must build an infrastructure that supports the critical aspects of a capital market system. Rather than build this structure with a top-down approach, we have chosen a bottom-up approach that begins at the foundation, with you, the retail consumer. From an investment perspective, the next layer in the stack after the portfolio construction and management layer is the safekeeping layer, which are processes performed by Qualified Custodians and/or Clearing Firms.

What is a Custodian or Clearing Firm?

A custodian bank, or simply custodian, is a specialized financial institution responsible for safeguarding a firm’s or individual’s financial assets and is not typically engaged in “traditional” commercial or consumer/retail banking such as mortgage or personal lending, branch banking, personal accounts, automated teller machines (ATMs) and so forth. The role of a custodian in such a case would be to:

  • Hold in safekeeping assets/securities such as stocks, bonds, commodities such as precious metals and currency (cash), domestic and foreign
  • Arrange settlement of any purchases and sales and deliveries in/out of such securities and currency
  • Collect information on and income from such assets (dividends in the case of stocks/equities and coupons (interest payments) in the case of bonds) and administer related tax withholding documents and foreign tax reclamation
  • Administer voluntary and involuntary corporate actions on securities held such as stock dividends, stock splits, business combinations (mergers), tender offers, bond calls, etc.
  • Provide information on the securities and their issuers such as annual general meetings and related proxies
  • Maintain currency/cash bank accounts, administer deposits and withdrawals and manage other cash transactions
  • Perform foreign exchange transactions
  • Often perform additional services for particular clients such as mutual funds; examples include fund accounting, administration, legal, compliance and tax support services

Stephen Corliss
Chief Global Strategist
Ethos

https://upscri.be/27f3c1/


Bitdegree Q&A with Ethos CEO Shingo Lavine

We recently partnered with Bitdegree to contribute to their educational platform, as our visions have a lot in common. Check out this interview with Shingo about our shared futures, and the role of education, blockchain and social intelligence in the New Economy.

https://upscri.be/27f3c1/


blockchain finance financial ecosystem

Blockchain Finance: Creating a Frictionless Global Investment & Wealth Management Ecosystem

Part II of our Blockchain Finance Series with Ethos Chief Global Strategist, Stephen Corliss

In case it isn’t clear yet, Ethos is about much more than building a next generation Universal Wallet for cryptocurrencies. While our wallet technology is the centrepiece of our platform — combined with Fiat Gateway, it actually serves as the heart for something much greater. Today we’re excited to make several important announcements to help framework our unique approach, as part of our continuous effort to deliver on our mission to democratize wealth and make the cryptocurrency and traditional markets safe and accessible for all.

Ethos believes that the best way to achieve our mission is to deliver a unified and global multi-asset wealth solution, that seamlessly connects consumers with investment advisors, wealth managers, broker dealers, custodians, digital asset exchanges, merchants and developers via the Ethos Platform.

As part of this effort, Ethos felt it was essential to form an Investment Committee, whose primary objective would be to oversee the creation of a frictionless Global Investment and Wealth Management Ecosystem. The committee’s mandate is a multifaceted program focused on locating the best partners for the Ethos Platform, including all essential aspects of the investment process.

To this end, one of the first actions taken by the “Ethos Investment Committee” was to launch a Global Strategic Partner Program in our search for additional strategic partners offering Investment Manager and Advisory Services & Technology — to provide essential investment services to our global user community as part of Ethos’ mission to unlock the New Economy on a global scale.

Partners through this program will also be expected to enhance, support or advance Ethos’ own development of a transformative next-generation robo-advisor or “Cognitive Advisor” offering, which will also be offered through a dynamic partnership.

We’re excited to continue to progress these efforts forward on all fronts as we move closer to delivering a powerful new financial ecosystem.

What is the Ethos Investment Committee?

The Investment Committee (IC) is an essential element of Ethos’ overall vision, as it will provide ongoing governance over every aspect of the Ethos Platform to ensure we maximize benefits to the entire Ethos Community. The IC will initially focus its attention on securing strategic partnerships covering specialist financial service partners including, Investment Management & Investment Advisory, Custody and Clearing, Merchant Services, KYC, Liquidity, and AI & Investment Data Vendors. Although much of this work has been ongoing for months now, we felt it was important to add a proper governance structure over all of these efforts to ensure full optimization of all the products and services to be offered on the Ethos Platform.

Why is this important to the Ethos Platform?

As a financial ecosystem, Ethos must build an infrastructure that supports the critical aspects of a capital market system. Rather than build this structure with a top-down approach, we have chosen a bottom-up approach that begins at the foundation, with you, the retail consumer. From an investment perspective, the next layer in the stack involves the portfolio construction and management layer, which are processes performed by Investment Managers or Investment Advisors.

What is an Investment Manager?

An investment manager is a person or organization that makes investments in portfolios of securities on behalf of clients, in accordance with the investment objectives and parameters defined by these clients.

What is an Investment Advisor?

An investment advisor is defined by the Investment Advisers Act of 1940, as any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications.

Stephen Corliss
Chief Global Strategist
Ethos

https://upscri.be/27f3c1/


Building Ethos Fiat Gateway

Part I of our Strategy Series with Ethos Chief Global Strategist, Stephen Corliss

As Ethos moves closer to release of our platform, we felt it was important to provide further clarity around our transformational structure and how this enables Ethos to deliver a new financial ecosystem that links the old and new economies.

To better assist our user community, partners and other interested parties in understanding the direction of the company, the following will provide all of you with essential background as to where we’ve been, where we’re going and why we’re taking the actions we will take.

Ideation of new concepts and structures is an area where the entire Ethos team excels. The fact that our team brings together minds from multiple sectors across traditional finance, blockchain and cryptocurrencies, tech, engineering, design and brand experience is not an accident. This skillset was established as a high watermark for the entire organization when the 79 defining words in the Ethos Vision were determined.

The future is for everyone.
Ethos is a people-powered cryptocurrency platform.

Unlock the future of investment. Empower the world. Our mission is to make the daunting cryptocurrency market accessible to everyone, accelerate adoption of blockchain technology and democratize ownership of cryptocurrencies. Ethos harnesses the power of design, technology and social intelligence to create a breakthrough solution that will enable everyone to participate in the New Economy.

We’re putting the power back in the hands of the people — where it belongs.

Clearly our goals and values are lofty but we believe the challenge is not in understanding the meaning of the mission statement but rather how Ethos will make this vision viable and sustainable for future generations. The first step in finding a sustainable solution, in my view, was to extrapolate the most critical elements of these 79 powerful words into just one simple phrase, “We’re putting the power back in the hands of the people”. This phrase is packed with countless meanings, but to achieve this essential objective we needed to immediately decipher all of the different elements involved in order to determine what was most common and critical. At the end of the day, it was clear that we could not achieve our objective without enabling a robust “Fiat Gateway”.

Why a Fiat Gateway? Because most transactions related to Finance and / or Investment can only be concluded by some form of payment. Furthermore, because we are solving problems for consumers, it was clear any solution would also have to involve a monetary unit that was highly fungible in order for Ethos to provide consumers with highly liquid solutions to ensure users could access their funds at a moments notice. However, because current fiat options are expensive and restrictive, we knew that a pure fiat solution by itself would not be sufficient. So we quickly concluded that the best way to optimize our solution would be to also leverage cryptocurrency technology and digital representations of value.

Once we understood that an optimal solution needed to involve a robust fiat and cryptocurrency hybrid solution — one that ensures a frictionless, seamless and cost effective entry and exit-strategy for global users — we immediately noticed that this solution was powerful not just for consumers’ cryptocurrency activities, but also for their traditional assets and investments. This was an important revelation. A hybrid asset solution allows us to build a transformational platform that encompasses both the new AND old economies, while also enabling consumers to manage all of their financial assets and activities through a unified solution and platform. Unification provides consumers with dynamic features including access to debit and credit cards, checking and investment accounts, seamless wireless payment solutions integrated with your mobile phone and popular mobile wallets, and even mobile wealth management.

With this hybrid solution now in hand, it was also clear that the current problems faced by most of our industry peers was not a lack of good technology solutions, but rather a lack of vibrant legal structures that typically relied on lower level restrictive financial authorizations, specifically money transmission licenses. Whether this was driven by a desire to limit operational or financial strains caused by regulation and compliance is not clear, however, it was clear that these decisions were negatively impacting the consumer experience through higher fees or cumbersome operational processes.

With the above fact pattern, it was immediately apparent to us that the best way to ensure the long term viability and sustainability of our industry and the Ethos Platform while also offering consumers a superior experience, was to embrace financial regulation and deliver a superior legal model upon which to build a universally compliant Multi-Sided Hybrid Investment Platform– without sacrificing the many powerful benefits of distributed ledger technology. Ethos is delivering a next generation crypto platform that embraces regulations and compliance, not runs away from it, without sacrificing consumer protection, and with human-centred design at its heart.

Over the coming days and weeks we’ll be sharing more about the many initiatives we are pushing forward as part of our unique approach to building the Ethos Fiat Gateway. As you take in these numerous press releases, articles and general announcements we believe the information shared today will help you better understand what we are doing to “Put The Power Back In The Hands Of The People”!

Thank you

Stephen Corliss
Chief Global Strategist 
Ethos

https://upscri.be/27f3c1/


Ethos Dev Update – 12.15.17

Hey Ethos family,

It’s KDP, your Product Manager. Sorry you haven’t heard of much from me yet through any formal communications! Since joining the team I’ve been ultra-focused on getting up to speed, making improvements to our workflow and getting our internal processes humming.

I’ve had the pleasure of speaking with some of you, and answering your questions directly on our Telegram channel, which by the way is a great way to reach me and the rest of the Ethos team. If you haven’t done so already, come join us at https://t.me/ethos_io!

I read ALL messages sent to @Ethos_KDP. I have a growing list of saved messages outlining your great ideas and I am baking those ideas into our feature prioritization process. So, thank you. ‎

So what have we been up to?

A LOT.

We’ve assembled a killer, core engineering team. You can check some of their bios on the Ethos team page, and some we’ll be introducing soon! But here’s the team so far.

Tim — A CTO that is too hungry to sit back and delegate.

Meiji — Chief Architect and relentless builder and innovator.

Andrew — Data scientist, collector and wrangler of all data on the platform.

Derek — Full stack developer, and leading front-end UI.

Pete — Security expert and continuous dev ops engineer.

Veysel — Full stack, applied cryptology and blockchain developer.

Gloria & Ellen — All things wireframe, UI and UX.

Now that the process is stable, we’re ready to expand. Check out our newly posted careers page or message @ethos_kdp on Telegram if you want to join us, test your might, and change the world. http://www.ethos.io/careers/

A well-oiled machine — built on a world class agile methodology.

We’ve cemented our pipeline from ideation to creation, with smooth handoffs, an accountability-rich structure, but still preserving the flexibility to let our team level up on their creative as well as technical prowess.

We are metric-driven. We’ve increased our technical output by 118% between Sprint 1 and Sprint 2 and we won’t stop there. We just increased our development commitment by an additional 30%. Quality code delivered, and quickly.

Where are we now?

We are deep into Sprint 3, completing the in-progress feature set due on December 20th. This includes: Sign Up, Login, Introduction to Ethos, a Virtual Wallet, Watch list, generation Ethos SmartKey (expect more on this soon!), hierarchical deterministic wallets and the seed recovery process.

We have scoped out and wireframed the entire feature set of our initial Universal Wallet release. It’s a thing of beauty.

We are continuing to polish the app look, feel and function — working with our Creative + Experience team to ensure the Ethos platform is seamless, beautiful, human-centred and a dream to use.

Where to next?

The Moon? Without a doubt. But for now I’ll be here on earth, in the trenches with my engineering team, with lots of with coffee, late nights, early mornings and blood, sweat, and tears (of happiness of course). We appreciate your enthusiasm, your patience and your support, and look forward to building this people-powered future together.

More updates soon!

With much aloha,

KDP

https://upscri.be/27f3c1/