Published Jun 20, 2022
By Qredo Team
Qredo Case Study: FBG Capital
FBG Capital is a Singapore-headquartered digital asset trading and investment firm which employs quantitative strategies across the crypto ecosystem.
Founded back in 2015 as a blockchain-native firm, FBG Capital operates as a high-frequency trader using both its own funds and investments from a variety of institutions, while also taking select venture positions in early-stage companies.
As an institutional-grade trading house operating across multiple digital asset classes, FBG required a similarly robust custody solution which offered world-class security and usability without sacrificing its access to the market.
In this case study, we will take a look at how FBG uses Qredo to connect with the Clearpool DeFi lending protocol.
Linking Qredo with Clearpool
FBG uses the Clearpool platform to access DeFi capital markets for lending and borrowing cryptoassets for use in its trading strategies.
Previously, the company used a browser-based wallet to interact with ClearPool, but found that the limitation of only having one single signer to approve transactions was incompatible with its institutional responsibilities.
With Qredo, FBG was able to use the industry-leading MetaMask Institutional wallet, while gaining access to an institutional-compliant custody platform which offered as many approvers or signatories per transaction as needed.
Each trade typically involves multiple users including both portfolio managers and FBG’s compliance and back office teams, meaning that the firm could maintain access to its book of business on Clearpool while increasing the security for each trade.
For FBG Capital Managing Director Jingcheng Li, the ability to seamlessly link Qredo with Clearpool while maintaining the controls and security that the firm requires made the decision to begin custodying assets simple.
With Qredo’s industry-leading decentralized Multi-Party Computation infrastructure and the ability to include all necessary signatures from trading to back office in transactions, the platform provided FBG with a one-stop shop for its requirements.
“Qredo offers us a unified platform through which we can transact across the EVM ecosystem which is secure, easy to use and more cost effective than competitors,” Li said.
“As a trading firm with a presence across the globe constantly transacting digital assets, we need a proven custody provider which can give us the controls we need while maintaining a fully decentralized base to work from.
“The Qredo platform ticks all those boxes and makes it as easy as possible for us to transact the way we want to.”
– Jingcheng Li, FBG Capital Managing Director
How FBG uses Qredo
FBG has two teams managing portfolios on Clearpool using Qredo, involving multiple traders, compliance staff and signatories.
As one example, the firm borrowed $10 million of cryptoassets using Clearpool through the Qredo connection, and repaid $5 million worth of USDT back to the Clearpool system.
The transactions were all completed using the Qredo infrastructure, with the remaining $5 million available on the platform for deployment across the EVM as required by FBG.
Using this structure, FBG is able to seamlessly integrate its trading and compliance functions, using the low transaction fees on Qredo to save on cost while not sacrificing speed or security of transaction.
“FBG Capital has demonstrated the flexibility of using Qredo to interact with the wider DeFi ecosystem as an institutional-grade user,” said Qredo Head of APAC Dan Burke.
“With Qredo’s benchmark decentralized MPC security and easily integrated platform, we can help clients trade across the digital asset universe while offering world-class security and a low barrier to entry.