Coinsilium CEO says Yellow Network protocol protects against Binance-style exchange hacks

Just one point I would like to make is that yellow, uh yellow network infrastructure actually can reduce the risks of the hacks.

Hello, you're watching Proactive. I'm joined by Eddie Travia. He's the CEO of Coinsillium. Eddie, very good to speak with you. You're up to a portfolio up to update this week covering several of your ventures. Starting with Yellow Network, you've backed Yellow since 2022. How significant is its plan to expand trading and clearing on the XRP ledger? What could that mean for Coinsillium?

Hi, yes, thank you, Steve. Um, so just to quickly recap that yellow is building infrastructure that helps trading platforms and their users uh transact with each other more efficiently while keeping assets protected through a non-custodial settlement model. Um, so the important part is clearing, meaning working out what participants actually owe after their trades are offset against each other. Um, so yellow's technology is designed to support uh frequent trading activity um with fewer individual onchain settlements that basically that's what makes it faster. Um, so XRPL is the XRP ledger. Um, it's an attractive place to develop because it already has fast settlement, low fees and built-in trading infrastructure. and it also has an established community. Um and the assets uh we on which Yellow wants to focus are XRP uh and RLUSD which is a stable coin on the XRPL which is mostly used on that in that ecosystem. Um, so the opportunity here is to bring more participants and uh liquidity in those markets. Um and then make that activity uh more capital efficient basically. Um so I think the the XR XRP ledger um initiative could broa broaden Yellow's uh addressable market. So, you know, having a larger market for them. Um and at the same time, Yellow intends to support um increased trading activity and increased liquidity on XRPL. So should be a win-win. Um and so the opportunity is to apply um the clearing expertise of Yellow of the Yellow solution uh within this established ecosystem of uh developers, traders and and financial application on on XRP ledger. Um just one point I would like to make is that yellow uh yellow network infrastructure actually can reduce the risks of the hacks because in the news right very recently, there has been a massive hack on on Binance. So mentioning this here. Um also would like to be clear that our digital assets at Concellum are completely unaffected by uh the Binance hack. We have no digital assets on Binance, we have no debt, so we don't have collateralized positions or anything like that. Um so just going back on yellow, um the on the centralized exchanges like Binance and many others, the customer deposit assets into wallets controlled by the exchange. Uh but that's not the case with uh with yellow. The assets used in the yellow channels are held in blockchain contracts, governed by protocol rules. So the yellow protocol removes reliance on uh exchange custody infrastructure. Uh and basically yellow protocol can help reduce uh concentration of custody risk, which is a major risk in in the exchanges. Um and that makes, you know, uh centralized exchange hack so so damaging.

Of course, very comforting, I'm sure for investors because that Binance news is top of the news bulletins this morning, Eddie. and moving on to Automata. It said it's launched a memecoin trading terminal for Robin Hood chain. What commercial opportunity does this open up and how can it generate value?

Yes, so so Terminal byto, this is is extending from their intelligence uh products which are where which are providing timely notifications into a more dedicated training trading application. Uh so terminal brings token discovery, market information and and trading in one user interface. Uh so the users can follow these new newly launched tokens. I mean, to be clear there are not millions, but let's say thousands uh every day of uh of new newly launched tokens that are called meme coins. Um and um users can follow these uh these tokens and can examine indicators that are provided by terminal, the product byto, such as trading activity, wallet participation, who's trading it, where the money coming from in terms of, you know, maybe these wallets are associated to developers that are known, what we call developer holdings. Uh so basically a set of tools for traders to to choose which newly launched token they would like to to uh to buy and to and to trade. Um and also because umto have an experience in the usual problems that come with these newly launched tokens. Um they basically have aiming to help traders uh by by providing these this information. Um and so these analytical tools address information gaps in these very far moving markets. Um so why did they choose Robin Hood chain is because Robin Hood chain is is a new chain which is doing quite a mark in that market specifically, which has a a large growth in the memecoin trading market. So I think building there at this early stage gives uh automate an opportunity opportunity to attract users um around this new kind of um ecosystem which is the Robin Hood chain.

Uh we chatted about Beating Heart recently, Eddie, and it's target a public launch in late November, early December. What needs to happen before launch and what are the early commercial targets?

Yes, so um Beating Heart is is is targeting to to launch in uh in late November, early December uh of this year. Uh the commercial infrastructure has been tested uh and so basically the feedback they got from the beta testing is helping to shape the the product. Um so the launch uh preparations are extending beyond the creative technology, they're also have been building the payments, the billing uh accounts and credits uh for for the platform. Um and they also have simplified the workflow that turns still images into video advertising campaigns. and we have seen some of these videos, they look great. and they would be of course available for everyone to see at at launch. Um and so they also have something they called the creative agent uh which coordinates uh specialized models and recommends creative direction. So it's it's a very um well done and well- developed product for a very specific target which is this creative um uh the fashion industry, uh supplying creative solutions for the fashion and lifestyle industry. Yeah.

Eddie, these updates span digital assets, trading tools and AI powered advertising. How do they fit into Coinsillium's wider strategy and which milestones should investors watch next?

So the common trade is that we're backing what we call now uh frontier technologies with uh practical commercial applications. So we contribute capital on a selective basis, we bring our experience and industry relationships. Um and just to clarify quickly, frontier technology refers to these emerging technologies which have the potential to reshape how markets, businesses and economies operate. I mean, of course, we have a long history in one particular frontier technology, which is blockchain technology. Uh but we have been um extending the scope. So for us it's we center on AI, blockchain of course still and decentralized infrastructure and that includes prediction markets as well. Uh with a focus on building and supporting the ventures that turn these technologies into practical commercial applications, which is our main objective. Uh so if we look at what we've been discussing, so yellow addresses financial infrastructure, Omato helps users interpret and act on market information and Beating Heart is applying AI to uh a very recurring business need, let's say in that industry. So our model combines um the potential long-term value from our investments with income from our strategic uh advisory work. Uh those are distinct sources of value supported by our Bitcoin reserve in in Forza. So for investors, focus on these milestones, um further technical and adoption updates from our portfolio companies like we've been discussing, yellow, uh monetization of uh Omato, uh Beating Hearts launch followed by, you know, paid subscription, attraction. And across Consillium, we have a growing advisory capacity and we can look at how our involvement helps venture progress. Um and we're working to expand our operating base as well.

Uh you're appointing Wayne Almeida as chief operating officer to strengthen operational delivery and growth at the advisory business, Eddie. What will he focus on first and how will his experience help Coinsillium scale?

So, Wayne's moving to um he's moving from non-executive to an executive role is building on more than five years uh of close collaboration with the with our team with the conum team. So this is a very natural next step for for us. Wayne already knows Conum, our strategy, the way we operate. So he brings this continuity which is important for us alongside additional executive capacity. Uh his uh operational corporate governance and compliance experience uh compliments my own focus uh on strategy, venture building and commercial partnerships. Uh so together our combined capabilities will strengthen our ability to translate this our strategic priorities into delivery, um expand our advisory activities and build this uh operational activity capacity that we we needed to to achieve uh our concilium development objectives and contribute to creating shareholder value uh in the end.

Eddie, I hope we'll continue to keep us updated with your progress. Thank you very much for speaking with us today.

Sure. with pleasure.

That's Eddie, the CEO of Coinsillium.