Even though banks and financial institutions are adopting crypto, we are still very much in the early stages of the market. Today’s guest, Richard Byworth, is the CEO of the EQONEX Group, which provides crypto and digital assets to institutions and individuals at any level. In this episode, Richard shares why he left the world of banking for Fintech. Having built his wealth through traditional means, he realised that protecting it conventionally was not going to work. This sparked his interest in Bitcoin and has even led to a career pivot. We hear about EQONEX’s products and services, what you need to keep in mind if you want to work in crypto, and the effects the pandemic has had on the market. Unlike many industries, lockdowns have greatly benefited crypto. This timely conversation is well worth tuning in for!
Key points from this episode:
- Get to know today’s guest, Richard Byworth, and how he ended up in the world of Fintech.
- The five attributes of gold that made it so desirable.
- Why Richard was so drawn to Bitcoin and how he got pulled into the crypto space.
- The range of products and services that EQONEX offers.
- Hiring is a key part of the startup world, particularly in crypto.
- The crypto market never sleeps, so before getting involved, you have to be sure it’s what you want.
- How the pandemic has impacted EQONEX.
- Richard’s take on why crypto is getting more institutional recognition.
- We are still in the very early stages of crypto, according to Richard.
- The interest EQONEX has seen from banks and financial institutions.
- How the China crypto crackdown has impacted EQONEX and the market generally.
- What we can expect from EQONEX in the next year.
The Discussion
Simon
Before we dive in, could you tell us a bit about EQONEX and how you transitioned from banking to the world of FinTech?
Richard Byworth
I spent 18 years in banking, and during the 2008 financial crisis, I witnessed firsthand the handling of the crisis by central banks. This led me to question the sustainability of the monetary system and the devaluation of money through excessive printing. I started exploring alternative assets like gold and eventually discovered Bitcoin. I realised that Bitcoin had attributes surpassing gold as a store of value. This realisation sparked my interest in the crypto industry, and I invested in a cryptocurrency mining company called Diginex, which later became EQONEX. I joined the company and helped build it into what it is today, offering a wide range of financial services in the crypto space.
Simon
Impressive journey. What is EQONEX’s growth strategy for the next few years?
Richard Byworth
Each component of our ecosystem, such as custodial services, asset management, and exchange, is gaining traction and growing. We aim to be the leading platform for derivatives in the crypto space, focusing on capital efficiency and providing prime services to traditional hedge funds. Our growth strategy involves attracting institutional players to our exchange, prioritising regulatory compliance, and offering innovative investment products. We also plan to expand our presence in Europe, notably Switzerland, where we’ll launch structured products and prime services. Overall, we have a broad ecosystem covering various crypto industry aspects.
Simon
It’s fascinating to see EQONEX’s progress. How do you view the competition in this market, and does it influence your decision-making?
Richard Byworth
There are several players in the market, each with their own approach. We closely monitor our competitors and consider their strategies if they are viable. However, our focus is on building a team of talented professionals and fostering a culture of excellence. We believe that having the sharpest minds in the industry sets us apart. Hiring the right people is crucial, and as we grow, we look for individuals who excel in execution and project management. It’s a constant evolution; not everyone can adapt from the startup phase to a mature company.
Simon
That’s a valuable insight. How does EQONEX attract and retain talent in such a competitive industry?
Richard Byworth
When we speak about our ecosystem and our vision, people often have a “penny drop” moment where they truly understand the potential of what we’re building. We offer equity programs to our employees, allowing them to have a stake in the company’s success. We look for individuals who are excited about the industry and want to be part of something groundbreaking. It’s a combination of attracting talent through our vision and providing them opportunities to grow and contribute to our success.
Simon
What advice would you give those interested in entering the crypto industry without prior experience?
Richard Byworth
First and foremost, understand that the crypto market operates 24/7, requiring constant attention and keeping up with industry developments. Immerse yourself in the news, follow key figures on Twitter, and stay updated on advancements in protocols, DeFi, and NFTs. Passion and excitement about the industry are essential. I also recommend conducting thorough research and gaining hands-on experience by buying and moving cryptocurrencies. This industry requires dedication and a deep understanding of how it works.
Simon
Great advice. Now, let’s talk about the impact of the pandemic on EQONEX. How has it affected your business?
Richard Byworth
Interestingly, the pandemic has led to increased productivity as people had more time to focus on work. However, the lack of face-to-face interactions and limited travel options have made bringing teams together and meeting clients challenging. We have adapted to remote work and virtual meetings, but there’s no substitute for in-person connections, especially when building client relationships. Overall, the pandemic has had positive and negative effects, but we have managed to navigate it.
Simon
Looking at the market, what do you think will drive further adoption by institutions as the crypto asset class matures?
Richard Byworth
The pandemic and the monetary stimulus injected into economies have highlighted the problem of monetary debasement. Critical moments like Michael Saylor’s move to allocate his company’s treasury to Bitcoin and Tesla’s involvement in the crypto space have influenced institutional adoption. Additionally, respected investors like Paul Tudor Jones and Ray Dalio entering the crypto space have further legitimised it. As traditional players recognise the potential and seek to protect their investments, we can expect more institutions to adopt crypto assets. We are still in the early stages, with significant room for growth and adoption.
Simon
Do you see this momentum happening globally or driven by specific regions like Asia, Europe, or the US?
Richard Byworth
Most institutions are US-based, but we are seeing strong growth and interest from European banks. European institutions have been dealing with zero or negative interest rates for a while, which has pushed them towards digital assets. Europe, especially Switzerland, is a promising region for us in terms of growth. We also see global momentum as central banks explore investing in stablecoins and blockchain-based securities. The adoption is happening worldwide, and we are well-positioned to benefit from it.
Simon
Finally, what can we expect from EQONEX in 2022?
Richard Byworth
In 2022, we will focus on expanding in Europe, particularly in Switzerland, with structured products and prime services. Derivatives will be a significant growth area for us as we aim to become the leading platform in this space. We will also launch our prime services product, designed to meet the requirements of traditional hedge funds. Our goal is to provide capital efficiency and innovative solutions to institutional players. Overall, 2022 will be an exciting year as we continue to power into the derivatives market and offer a comprehensive suite of financial services.
Simon
Thank you, Richard, for sharing your insights today. It’s been a pleasure speaking with you.
