Never enough about money talk. The future of finance is fundamental for us, as a local and global community. Exchanging value between us fast, efficiently and without artificial obstacles is key, if we want to unlock the full value of the world economy. From a technological point of view, we can. The question is always: do we want to?
This is why we (FP) sit down with Laurent Benayoun (LB), CEO at Acheron Trading. This is our exchange.
FP. Tell me a little bit about you and your company.
LB. I am trained in financial mathematics. French national, I studied in the US, at Boston University for Undergrad, and then Princeton University for my Master’s. I founded my own company, called HedgeTech, a bootstrapped trading algorithms and infrastructure provider for digital assets, acquired in 2022 by Acheron. In 2023, I became the CEO of Acheron.
Acheron is a market maker for digital assets, servicing issuers, exchanges and even other market makers. We aim to increase markets’ efficiency to participating in increasing the adoption of crypto since we see it as the future of finance. Our technology advantage allows us to provide highly scalable solutions while putting a strong emphasis on integrity, transparency and compliance.
FP. Where do you play, and what’s the future of your space?
LB. We operate on major markets as well as the long tail of assets – bitcoin, and then all other crypto or blockchain based currencies. Then, there is Real World Assets (RWA) tokenization, which goes from real estate to the tokenization of securities and other advanced vehicles. Once niche, RWAs are growing.
Payments are a critical part of the future of the industry. Traditional finance, anchored to legacy systems, still present issues and barriers to entry. For example, even as a regulated and well-funded institution, we face difficulties opening bank accounts. We need to clear the space from inefficiencies and noise, to make finance more open and fluid, while fully respecting rules and guidelines from public institutions and governments. RWA can also become an engine for blockchain adoption in the future.
FP. What’s your take on the differences across regions?
LB. There is, for sure, a different pace across regions, and evident diversity in terms of regulations. Singapore, where we are based, is moving fast, with clear frameworks (for ex., the Payment Services Act, or PSA).
There is MiCA in Europe, which is a region wide set of guidelines for the entire region. It’s very comprehensive, and you need to follow it, if you want to service clients everywhere in the EU territory.
The US has shown lately a very significant push, opening up the market to crypto. We are actively monitoring all the regulatory steps in the region.
We also note that regulators encourage dialogue. For example, some laws were not designed for market makers, which are a relevant part of the new digital assets’ economy. But regulatory agencies were willing to listen and clarify the rules.
Jurisdictions that allow free rides and very low red tape will probably disappear, and we will observe a degree of convergence across regions, towards better and somewhat unified regulation, towards openness to digital assets and the benefits that they bring to the overall market.
FP. Where do you see Acheron in the future? What’s your dream?
LB. The company was born in 2018 and entirely bootstrapped. We count around 25 people. I guess we have passed the stage of being a start-up. We are a scale-up now. We have generated revenue and have been profitable since inception.
In terms of expansion, after Singapore, we are opening up shop in the EU (Netherlands) and then are looking forward to establishing a US presence in the future, regulation allowing. I would love to see the product portfolio move into OTC and other structured products, helping the traditional finance world transition into a stage where innovation, inclusion and efficiency become the standard for all operators, old and new ones.
FP. We have the tech to solve the noise and kill the fat in the financial world. We have the tech to include everyone. Soon, we will also have the rules. There is no excuse to avoid change. Let’s keep talking money.
By Frank Pagano