Greenwich startup creates exchange for digital ‘tokens’

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It was a defining moment in fintech circles, when cyber currency exchange Coinbase debuted as a standalone company on the Nasdaq in April with a market cap roughly three times that of the exchange’s own value. .

Michael McGuire isn’t suggesting that his Greenwich Symbridge startup will match Coinbase or Nasdaq for market weight – but he does believe it will become a household name among investors and a major Connecticut employer over time.

Symbridge describes itself as a digital asset exchange – an online platform for people to buy and sell both popular cyber currencies such as bitcoin as well as ‘tokens’ created by systems. IT related to the value of physical products.

The company aims to launch the exchange between October and December, depending on regulatory approvals. Symbridge will review all assets traded on its exchange to ensure their legitimacy.

“This market is really new – and we believe cryptocurrency is not the end of it,” said McGuire, CEO of Symbridge. “Cryptocurrency is the start of that, when you plan to ‘tokenize’ different types of assets that can all be traded on digital exchanges. This is the really exciting part.

Blockchain is the key foundation for digital currencies like bitcoin, allowing independent auditors to confirm the authenticity of transactions – and prevent the digital equivalent of counterfeiting that can torpedo trust in any monetary system. .

“You will be able to see every transaction that happens, written to the blockchain in real time,” McGuire said. “For regulators this is a good thing – they can identify patterns of trading in the market that look like manipulation [and] this allows us to identify it. And it gives our customers a feeling of confidence.

Regulate millions of assets

McGuire said he was determined to differentiate Symbridge by placing it under the oversight of U.S. regulators, instead of offshore jurisdiction as others have chosen.

“The regulatory posture of these places – it’s not non-existent, it’s just a lower bar,” he said. “We took the opposite approach [saying], ‘Where is the most regulated place in the world? United States. OK, let’s set up this digital exchange in the United States. ‘”

Hundreds of exchanges exist to trade currencies and digital assets, with Coinbase perhaps best known after its initial public offering of shares which valued the company at $ 86 billion – at that time, $ 60 billion. more dollars than the Nasdaq exchange’s own market value as a business.

“They’re primarily targeting the retail market – so the average portfolio size is $ 300,” McGuire said. “We take the opposite view: a sort of ‘old-fashioned broker meets the 21st century private banker’ where you can call us 24/7, and we can help you answer all of them. your questions. “

Coinbase is not ignoring larger market opportunities, CEO Brian Armstrong made clear in a conference call with investors.

“There are more and more assets created in the ‘crypto’ economy – I think it’s going to be something like apps in the App Store or on the iPhone, where there are ultimately millions of these assets created over time, ”Armstrong said in May. “There is no question that we need to speed up the process by which we review the assets and add them to the site, because we are quickly going to be in a world here where there are so many that we cannot continue.”

“Navigate the unknown”

McGuire chose Greenwich for Symbridge’s main office – it’s across from the downtown Metro-North station – mainly because of its proximity to New York City. The company has 30 employees who work a hybrid schedule remotely during the COVID-19 pandemic. As of Friday morning, Symbridge was listing 15 vacancies.

Greenwich is home to a major trading platform – Interactive Brokers, which entered this year with over 2,000 employees. Founder Thomas Peterffy is listed by Forbes as the richest resident of Florida with an estimated net worth of $ 25 billion.

McGuire began his career with Manufacturers Hanover Trust, now part of JPMorgan Chase, after growing up in Wallingford and attending Babson College. His work led him to focus on commodities and finance in Russia, creating Triple Trunk Capital in 2006 in Greenwich to structure transactions.

For his part, McGuire is a lecturer at Columbia University’s business school, also working with a blockchain business launchpad run by Columbia and IBM.

Symbridge is awaiting the necessary regulatory approvals for its own launch. Digital assets are new enough that a business group called the Digital Asset Regulatory & Legal Alliance is using “Navigate the Unknown” as their slogan. One of DARLA’s co-founders worked in law enforcement for the SEC and the Commodities Futures Trading Association, and now runs a startup in New York called Crosstower that created a digital exchange.

McGuire says there will be a lot more, but promises Symbridge is well positioned to be successful.

“We’re very confident it’s here to stay – not just for us but for everyone,” McGuire said. “Our best hope is to create a lot of volume on this exchange and start trading new and innovative products.”

Includes previous reports by Paul Schott.

[email protected]; 203-842-2545; @casoulman

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