INVAO brings crypto asset trading to UAE
INVAO uses proprietary software to execute arbitrage trades across various exchanges
The UAE is emerging as one of the exciting markets in the emerging world of crypto trading.
Progressive government regulations and blockchain initiatives have resulted in various crypto-based businesses establishing their base here, with a growing ecosystem of exchanges, asset managers, technology providers and more.
One of those attracted to the region is the global blockchain investment manager INVAO Group, which launched a presence in the UAE earlier this year.
Through INVAO’s blockchain asset pool, UAE investors can now easily gain access to an actively managed portfolio of blockchain assets and cryptocurrencies.
The company aims to reduce the risk of blockchain asset trading across different regions and marketplaces by offering a broadly diversified crypto-asset portfolio that is actively managed.
“INVAO operates as a bridge between traditional financial investments and blockchain as an asset class,” explained Ahmed Jacob, managing partner & CTO at INVAO Group.
Investors are typically investors who would like to diversify their exposure to traditional asset classes as well as those who already have invested in crypto assets but would prefer to hire professionals to carry out the asset management, said Jacob.
Part of INVAO’s trading strategy is AI-based arbitrage trading. INVAO connects to a large number of exchanges and uses its proprietary software to aggregate prices among all and then execute arbitrage trades across the exchanges, explained Jacob.
“The volatility in crypto markets is high. Arbitrage trading offers a way to generate trading profits based on price differences across different exchanges. Therefore, trading profits are not solely based on the asset price movement, resulting in less exposure to high market volatility,” he added.
The securities prospectus of INVAO’s flagship investment product, the IVO – Blockchain Diversified Bond (ISIN: LI0471823018), was accepted by Liechtenstein’s Financial Market Authority, said Jacob.
INVAO uses its proprietary software to aggregate prices across exchanges and then executes arbitrage trades.
Security is essential in the industry to reassure clients, spooked by reports of million-dollar heists in various exchanges all over the globe.
“We have worked hard on design penetration tests from our end. On the exchanges’ side, we have whitelisted exchanges that we believe we can leave budgets with, that are insured and work with third-party providers to manage their storage,” said Jacob.
There have been rapid advances with blockchain, the underlying technology behind crypto assets.
“Not many people understand how the Internet works; they just know it works. When society fully embraces blockchain, it will be the same. So when we see governments starting to embrace blockchain such as the Dubai Blockchain Strategy, then the credibility and interest around the technology grows,” Jacob said.
Various initiatives aim at making UAE one of the most exciting crypto markets in the world.
Both the Abu Dhabi Global Markets and Dubai International Financial Centre free zones already have blockchain-specific regulations in place.
The UAE government has launched its Emirates Blockchain Strategy 2021, with the goal of transferring 50% of government transactions onto blockchain-based platforms by 2021, which could transform the UAE into the globally leading hub for blockchain technology.