Generating returns from the real economy

Creating an insured, interest-bearing deposit account, on chain.

One of the most entrenched narratives in finance is that banks are simply neutral actors in the economy, charging for connecting surplus capital with productive opportunities.

That is the Walt Disney version of banks and it is almost completely a lie.

Banks are inefficient, high-margin businesses that always put themselves first. Depositors bear the brunt of banks’ greed with high fees and low interests on their deposits.

The fundamental premise of fractional reserve banking is based on a lie. The bank tells depositors that it is their money, sitting in their account, and they can have it back at any time. At the same time, the bank lends most of the money to borrowers or uses it itself, including as an input to its own credit money creation. Depositors take most of the risk. The bank gets most of the rewards.

Credit money creation
Banks creating money, in a nutshell.

Enter DeFi.

DeFi users can earn much more in a transparent and permissionless way, investing through lending protocols. In the DeFi world, code replaces core banking and connects borrowers with lenders directly.

But of all the billions in lending platforms today, the overwhelming majority of these assets are limited to the crypto world and involve risk. The abyss separating them from productive business opportunities in the real economy is still huge.

This makes it hard to challenge the core banking industry and spur mainstream adoption.

For all the improvements made by fintechs and crypto companies, there are few real alternatives to a bank account today.

We believe this needs to change.

How we are linking crypto to the real economy?

Through a unique combination of decentralization + blockchain + insurance, we connect deposits to short-term liquidity in the real economy.

  • We purchase short-term invoices to be paid by investment-grade companies and take title to the invoice.
  • The supplier and the buyer agree to use blockchain technology, which eliminates disputes and fraud, allowing us to put attractive insurance in place.
  • Then, this is all 100% insured. If the buyer doesn’t pay, the insurance company pays.
How CrescoFin Works
How it works

And here is what happens, from the perspective of the depositor:

  • You top up your savings account with fiat or stablecoins. BTC and ETH to come. There is no limit to the insurance coverage.
  • CrescoFin facilitates the purchase and insurance of invoices from investment-grade companies, all registered on chain.
  • Savers can switch easily between fiat and crypto.
  • Interest is paid monthly. You can redeem your funds at any time, with 30 days’ notice.

All of this is non-custodial and bankruptcy-remote from CrescoFin.

For fiat depositors, CrescoFin acts as a fiduciary. Information is recorded (hashed) to the Ethereum blockchain, for additional security.

For cryptocurrency users, they hold the keys.

Quick, common-sense KYC process. If you are not on the Swiss govt sanctions list, then ok. If you are, then not ok.

Regulated and audited in Switzerland. Quoted on Bloomberg.

Designed for institutions and individuals.

Summary of our business model:

Business model
Connecting fiat and crypto to the real economy

CrescoFin