Message from the SwissBorg Team
In light of the FTX crisis, we would like to first and foremost empathise with those affected. Next, we want to remind our community that Your Funds Are Safe and highlight what makes SwissBorg safer than many competitors.
We are Swiss, indeed our CFO is very Swiss. This means that we are super cautious and precise in everything we do. It sometimes causes our community of app users to complain about our slow pace but in times of crises, it pays to be Swiss!
Tale of Two Licences: Custody & Exchange
At SwissBorg we opted for 2 separate licenses (now merged) back in 2019 that allowed us to provide Exchange and Custody services to our users. The separation between Custody and Exchange in the license is very important. It means that user funds are 100% segregated from SwissBorg's own funds at all times making them safe in case of bankruptcy.
It is as if we provided each user with their own ledger. We can’t touch your money! Custody services mean we provide a technical infrastructure for users to store their funds. We are not allowed to use/touch user funds for our own benefit.
At SwissBorg, we are very fortunate to have strong risk management measures and prudent budgeting practices. We hold two-thirds of our assets in fiat and stablecoins, offsetting the risks of volatility in other crypto assets.
We hold the remaining third of our treasury in crypto, with the majority in top-10 tokens with strong fundamentals (BTC, ETH and BNB).
We Paid the Price
You could say that we paid the price by having a smaller market share than our competitors during the bull markets that had the liberty to use users' funds. The advantage of this lack of greed on our part is that we can fulfill our fiduciary duties and can sleep at night knowing that our community’s assets are not at risk. It also positions well, in the long-term, as survivors of the volatile crypto market ready to reap the benefits of the next bull run.