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CEO CHAT: Edward Woodford, SeedCX

Traders Magazine Online News, February 27, 2019

John D'Antona Jr.

What is an asset?

As defined by the dictionary it is property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies. In financial accounting an asset is any resource owned by the business. Anything tangible or intangible that can be owned or controlled to produce value and that is held by a company to produce positive economic value is an asset. Simply stated, assets represent value of ownership that can be converted into cash.

So, what is a digital asset then other than the newest market craze? It is largely defined as digitally stored content or an online account owned by an individual. Digital content includes individual files such as images, photos, videos, and text files. It also includes other digital content (perhaps as data in a database).

Traders Magazine recently caught up with Edward Woodford, Co-Founder and Chief Executive Officer at Seed CX, a new all-institutional digital asset exchange. In an interview with editor John D’Antona Jr, Woodford discussed how the exchange has just launched spot trading capabilities in the wake of the recent institutional adoption of digital assets, digital market structure, wallets, margin, operations, surveillance and other areas.

TRADERS MAGAZINE: How difficult was it setting up an all-digital-asset exchange? What makes it different than a regular equities exchange?

Edward Woodford: As with anything that is worth doing, it was a product of a lot of hard work from the 45 incredibly talented people we have here at Seed CX. We are creating the infrastructure for a new asset class, in particular the settlement and custody of digital assets. That said, we are keen to take the best aspects of exchanges in established asset classes, with a strong focus on compliance and operational excellence.

One of the key pain points in the digital asset space is the inefficiency of capital. This is mitigated at Seed CX by offering margin trading. We also uniquely allow collateral to be posted in digital assets.

TM: Why launch spot trading? How is trading normally done?

Woodford: We launched spot trading because the majority of volume in the digital asset space is in spot. Digital asset trading currently occurs on a variety of trading venues and OTC.

In terms of derivatives, we are a regulated Swap Execution Facility. For product launch, we are waiting on regulatory approval to launch digital asset derivatives trading, which we expect will happen later this year.  

TM: Has the institutional community readily adopted digital assets? We’ve heard there’s been limited interest – so did you have to incentivize? If so, how?

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