“Bitcoin is the world’s largest pool of underutilized collateral. It is heavily under-financialized.” – 03:01
Aki Balogh, CEO of Bitsafe, joins Remy Blaire to discuss the transformative potential of Bitcoin in the financial sector. The conversation begins with Remy highlighting the launch of CBTC, a one-to-one Bitcoin-backed token developed on the Canton network. Aki explains that CBTC allows Bitcoin to be utilized as collateral for trading margin and liquidity management, marking a significant shift towards institutional adoption of Bitcoin in mainstream finance.
Aki elaborates on the technology behind CBTC, describing it as a new type of Bitcoin wrapping technology that employs a 15-member multisig secured by the largest node operators globally. This innovative approach ensures that Bitcoin is not reliant on a single custodian, enhancing security and trust. The choice of the Canton network is particularly noteworthy, as it is recognized for its privacy-focused and institutional-oriented features, with partnerships involving major financial institutions like Goldman Sachs and Citadel.
Remy prompts Aki to clarify the distinction between wrapped Bitcoin and regular Bitcoin. Aki explains that while Bitcoin operates on its own blockchain, limiting its functionality, platforms like Canton enable smart contracts that facilitate a wide range of financial activities. This capability transforms Bitcoin from a static asset into a dynamic tool for investment, trading, and borrowing, thereby unlocking its potential as a significant financial resource.