BeInCrypto had the different to sit down down down down with Ilya Volkov, CEO and co-founder of YouHodler, a Swiss and EU-essentially based completely mostly Crypto FinTech firm. YouHodler obtained recognition for its crypto lending, borrowing, and yield services, which cater to customers looking out for to develop their indolent crypto holdings for diversified shopping and selling systems.
In the direction of our conversation at the Web3 Banking Symposium in Lugano, Volkov shared his philosophy at the support of constructing a lean, self-sustaining firm within the crypto situation, as smartly as his thoughts on the manner forward for blockchain and crypto’s characteristic in extinct monetary programs. From the challenges of integrating decentralized finance (DeFi) with legacy banking structures to how YouHodler is pushing the envelope with fresh applied sciences, this interview provides in reality handy insights into one in every of the industry’s most dynamic leaders.
Ilya Volkov on Constructing YouHodler Without Exterior Funding: How Inner most Values and Beliefs Fashioned the Hotfoot
It used to be in any appreciate times on my mind and the minds of my companions that we desired to consume a lean methodology. The profit of this methodology is completely quite straightforward. Whereas you point of interest on a lean methodology, you point of interest on efficiency.
That methodology you design products that will probably be welcomed by your prospects, and prospects will vote with money for your products.
Whereas you happen to evaluate this methodology to others within the situation, particularly between 2017–2018, the contrast is evident. Many companies raised huge sums of cash by ICOs, and while not all of them wasted or misused these funds, a necessary number did. It used to be straightforward money and appropriate as straightforward to expend.
So the money used to be invested in questionable marketing channels and all kinds of influencers, and extremely not ceaselessly did money trail to true product pattern.
And all once more, the important thing is that many companies that raised plenty of easy funds had been not centered on product pattern. They had been centered on being joyful with themselves, and that’s why plenty of them failed.
Again, disclaimer, not all of them failed, nonetheless adequate to originate the purpose. So right here’s the profit of working your firm with a level of interest on efficiency and point of interest on the standard of your products.
There are two downsides, essentially. So the first one is that if, worship, in just a few months after the initiate of your firm, you bear tens of hundreds and hundreds of cash raised by ICO or some VCs. Unnecessary to suppose, that it is probably you’ll moreover straight away make investments in every little thing, including marketing, which is amazingly crucial. Advertising is amazingly costly within the digital situation.
In actuality, it’s moving that this day, digital channels are extra costly in comparison to extinct, offline channels, and natty companies who raised plenty of cash obtained a substantial push within the foundation. I would not mention names, nonetheless I agree with you appreciate some impartial appropriate examples of companies that raised tens of hundreds and hundreds by ICOs, and now they’re quite impartial appropriate, they once in a while care for, defend working. I will most efficient insist bravo to them. So the first profit for them is a instant impartial appropriate begin.
The second profit of getting external enhance, particularly when collaborating with high-tier VCs quite than by ICOs, is fetch entry to to true journey. Whereas you happen to work with highly genuine, VC-centered agencies, you bear some additional journey. I will list just a few VCs worship a16z. They are very natty guys with their very personal point of interest on efficiency.
So, can bear to you work with mavens worship them, you fetch the profit of accessing an records nasty and a huge number of market journey. However pointless to suppose, that it is probably you’ll moreover moreover lose your freedom.
After years of laborious work, I contain we composed bear a likelihood to begin working with some natty companions. However on one other stage, we’re not a startup anymore. We’re per chance extra than scaled up. And yeah, we’re begin to working with natty, strategic traders. However all once more, the important profit composed is that you just bear your point of interest on the standard of products, and you’ve got your point of interest on your prospects who are paying money for true price, not appropriate hype or empty tokens.
Promising Crypto Technologies and YouHodler’s Role in Shaping the Future of Blockchain
There are plenty of diversified sorts of dimensions and diversified sorts of consume circumstances in our situation. So, investments in shopping and selling, payments, and stores of price, appropriate? As for investments and shopping and selling, we point of interest on itemizing all in reality handy coins and tokens for looking out for to come by, promoting, lending/borrowing, and shopping and selling. Our market division is in any appreciate times maintaining up with the markets, alongside with your entire traits.
Unnecessary to suppose, we bear your entire classics, and we’re following with one thing fresh, worship essentially the most fresh instance is the TRUMP coin. We monitored carefully what used to be going down on the market, and we released the Trump token within 24 hours after the announcement of Trump. We obtained plenty of appreciation from our prospects because they had been jubilant to commerce with it.
There are plenty of questions about the manner forward for tokens worship TRUMP, nonetheless anyway, it is miles one thing very moving and extremely interesting for prospects. So, strategically thinking, I agree with that we are going to bear not appropriate cryptocurrencies on our platform nonetheless moreover some extinct resources within the mid-term future in accordance with partnerships with diversified monetary establishments.
So, we’re crypto native, nonetheless we’re partnering with extinct establishments. And in reality, the tournament – Web3 Banking Symposium in Lugano, the establish we’re talking is a decent illustration of collaborations, of crypto and extinct establishments. So, we can defend including crypto and even some extinct devices to the shopping and selling and investment half. Right here’s no 1; number two for our strategic point of interest is payments.
We make investments loads in all wallet and price infrastructure for applications. With us, that it is probably you’ll moreover fetch your dedicated monetary institution legend opened on your name all by the platform. Unnecessary to suppose, we count on our banking companions to provide the carrier. You would hyperlink your playing cards, Visa and MasterCard, that it is probably you’ll moreover without misfortune high up and withdraw with appropriate one click, and you’ve got your money on your card, to pay your payments, aquire groceries, and all these sorts of every-day things.
We’re at the final, I would insist, stage of releasing our personal card, a YouHodler branded card. To simplify the patron journey a lot extra, pointless to suppose, we bear all kinds of banking protocols constructed-in into the platform. We enact all that in repeat to enhance a 360-stage methodology for price around crypto.
Also, we’re investing in some fresh aspects. And I’m so jubilant that we’re one in every of the first participants of the Universal Money Address (UMA) network constructed on Lightspark in Europe and Switzerland. Right here’s an out of this world characteristic. I will provide you with just a few hints.
Lightspark is a firm that used to be created by tier-one entrepreneurs from companies worship PayPal, and Fb. David Marcos, Lightspark’s founder and CEO, is PayPal’s broken-down president and Meta’s ex-Top Manager. He brought into Lightspark his journey in constructing PayPal and Fb’s price alternate solutions.
Enact you be wide awake the illustrious account of Libra and Diem? They learned loads from it. So, they launched Universal Money or UMA. Right here’s a lot like PayPal, nonetheless it’s the subsequent stage. It’s a straightforward, human-readable address, a lot like electronic mail, nonetheless linked to any originate of cash – crypto or fiat. You would send any money and in a topic of seconds, your recipient will fetch his or her most smartly-liked forex.
So, with us, that it is probably you’ll moreover consume this address for crypto, any crypto, and Fiat. You would consume Euro, Greenbacks, British pounds, and pesos. Whereas you’d prefer to send money to anyone else, you merely search records from your mate about his or her address.
And on your side, let’s insist you sent Euro. However on their side, if they’re, let’s insist, within the United States, they receive USD. And the beauty is that within the US, they are able to also receive it in USD, literally to their monetary institution legend in any monetary institution within the United States.
And it works with diversified international locations. So we’re taking impartial appropriate care of Switzerland and the European Union, and diversified participants of the network rob care of diversified international locations. We bear companions in Argentina, the Philippines, and Turkey.
Whereas you happen to send money, as an example euro on our side, it’s being reworked straight away to Bitcoin. It’s being transferred the usage of Bitcoin Lightning Network, and on the partner side, US, Argentina, whatever, it’s been reworked to native forex straight away all by the platform.
So you don’t need SWIFT or protocols, any diversified monetary institution protocols. You don’t need any form of diversified price trails. You don’t even need stablecoins because Bitcoin is extinct as a price rail right here.
And thanks to the Lightning network, it occurs appropriate in a topic of milliseconds and seconds. The frequent time for the transaction is three seconds. Sounds unbelievable, and we bear it, and it works.
We’re essentially working some sorting out campaigns worship we’re focusing on, as an example, communities of Filipinos working in Europe. Recently, they’re transferring money the usage of Western Union, or Immediate-witted which is clearly costly.
We impart them, worship, consume us on the European side. Three seconds, a itsy-bitsy commission, and that’s it. So right here’s appropriate an illustration of how dedicated we’re to the pushing of, you appreciate, boundaries of the abilities with all once more, a level of interest on key values for the end shopper.
YouHodler CEO on Ripple and Horrible Border Payments
Abet in 2016 or 2017, I used to be a substantial fan of Ripple’s thought. It used to be to subject SWIFT, appropriate, and I loved it. The search records from is, did they take care of to subject SWIFT after all these years?
I don’t inform so. As a replacement, we bear stablecoins, Circle, and Tether, that are mainly facing the identical instruct of affairs. We even bear UMA focusing on the thought that of sinister-border payments.
Coming support to a search records from about our contribution to that point, we moreover actively rob half within the advance of the entire industry.
The market is so substantial. As a replacement of competing and combating with anyone, it’s better to partner. And that’s why we’re looking out for to raise together diversified companies, even from diversified websites.
Three years within the past, when I mentioned I needed to connect banks and crypto companies, individuals conception I used to be crazy. They told me it would never happen. However It’s going down now.
Bridging the Gap Between Web3 Anonymity and Aged Finance’s Regulatory Demands
There are two parts. One is ready anonymity and the oldest point of KYC and AML practices. Every other is self-custody. Let’s contact nasty on every.
So, as for KYC, I contain when we focus on appropriate frequent individuals, traditional individuals, moderate individuals, worship we’re. It’s not an instruct of affairs, essentially. So I don’t look any points.
And we bear, agree with me, a mountainous journey with the KYC processes and instruments. So we’re talking about 1,000s of oldsters coming every day. We don’t look any points with the frequent individuals, as soon as you bear essentially impartial appropriate UI, so can bear to you bear a decent resolution to upload and process your paperwork, to originate selfies and all these sorts of things, it’s not an instruct of affairs.
The subject appears to be like with inappropriate actors who are attempting to trick the system. And it’s not appropriate about substantial fraud circumstances, nonetheless it’s moreover about some itsy-bitsy frauds, worship card fraud, as an example. Imagine me; there are plenty of fraud circumstances going down every day everywhere the space, worship hundreds and hundreds on the market with stolen playing cards, flawed identities, and all these kinds of things.
Whereas you evaluate the price of protection and defense from fraud with the complexity of KYC. And can bear to you watch from the perspective of the standard heart class, KYC is not an instruct of affairs.
However all once more, we can bear to point of interest, and we’re focusing loads on simplification of the UI/UX of our app. So, pointless to suppose, there’s one other point linked to KYC and AML, which is taxes all once more.
So it’s not appropriate about Web3. Of us bear in any appreciate times hunted for ways to optimize taxes. If it’s done legally, no subject. If it’s done illegally, that’s not okay.
And right here’s, all once more, not about the trick of crypto. Right here’s about the subject in general. My point is that crypto is not a technique to trick taxation, in no procedure. If one thing else, cash is composed the absolute best technique to quit off the radar, appropriate?
My short solution is that anonymity is not an instruct of affairs, essentially, particularly can bear to you bear polished shopper interfaces.
After we focus on self-custody, it’s very moving because our evaluation shows that there are two substantial groups of customers: anyone who would like to administer keys and anyone who would like to bear anyone taking impartial appropriate care of it. Again, worship with extinct banks, you’re relaxed since you appreciate that can bear to you neglect your password, that it is probably you’ll moreover call buyer enhance or consult with the division, and this could moreover be fastened.
So the identical behavior we look on the crypto side, which is okay, so as soon because the carrier provider is loyal, it’s completely lovely. That’s why it’s crucial to bear regulated carrier providers who are serving you with these kinds of things. No longer all individuals in this world can rob care of themselves, appropriate?
In relate that’s why centralized establishments are composed wanted, nonetheless pointless to suppose, there are customers who would like to administer their very personal resources themselves with noncustodial methodology, which is completely lovely, and essentially, we’re following up with this methodology. We started as a centralized institution.
Now, we’re integrating Web3 connectors and wallet connects. It’s not are living on the platform but, nonetheless this could moreover be readily within the market soon, very soon. The thought that right here is amazingly straightforward. We’d prefer to mix every aspects.
So, can bear to you’d prefer to composed consume your ledger, hardware system, and even MetaMask, that’s lovely, nonetheless in some unspecified time in the future, or not it is a have to-bear to fetch a mortgage, or in some unspecified time in the future, or not it is a have to-bear to convert your Bitcoin to native forex.
We supply you with an straightforward plugin. Click on the button, and you hyperlink your wallet to our application the establish that it is probably you’ll moreover pledge crypto and fetch a mortgage, or that it is probably you’ll moreover without misfortune high up your Visa or MasterCard. So we’re essentially sorting out the connector, and it’s quite promising and by that, I contain we can satisfy every groups of of us that don’t need to address their keys and of us that’d prefer to administer keys by themselves.
YouHodler’s Formulation to Balancing Crypto Anonymity with Aged Monetary Guidelines
I will trail deeper because, essentially, it’s a extremely moving search records from, all once more. So, you appreciate, it’s worship you bear in any appreciate times acted instant, to quit compliant with all regulations In some circumstances, they’re genuine. In some circumstances, they’re following diversified targets.
Upright to provide you with a thought, appropriate in parallel, with our interview, there’s a PwC keynote going down on the stage of the Web3 Banking Symposium , they once in a while’re talking now about CARF (Crypto-Asset Reporting Framework).
It’s a fresh crypto asset reporting customary that is going to be applied within the European Union in 2026. In relate that methodology that, worship, now we must in any appreciate times be compliant with MiCA law, and we’re at, worship, final phases of facing MiCA and DORA, and now regulators dropped CARF, so that you just in any appreciate times bear to make investments loads following up with this, all these kinds of things.
So, the short approach to your search records from is that it’s not about discovering a finest balance since you bear in any appreciate times kept your programs as a lot as this point.
We bear our head space of job in Switzerland. We bear several authorizations and licenses within the European Union.
Also, we’re completely committed to MiCA compliance and bear invested loads in this MiCA methodology. Our European team is increasing. We bear some extensions, as an example, we bear our authorization in Argentina to work with Latin American markets. And, pointless to suppose, we bear some plans for diversified markets.
Even with frameworks worship MiCA, you proceed to need to narrate up with diversified areas, and we enact that. And it’s not straightforward. However right here’s the actuality, appropriate?
How Increasing Blockchain Guidelines are Shaping YouHodler’s Future and the Crypto Industry
In the morning, at the Symposium, I equipped one scamper with straightforward charts worship the complexity of regulations and their importance for the economy. And we look that international locations are attempting to come by their space there and looking out for to compete, compete with every diversified.
Let’s rob the US, as an example.
A year within the past, we saw an absolutively restrictive, crazy atmosphere, with plenty of complaints. However, the monetary sector, the monetary abilities sector, and the banking sector had been in any appreciate times a have to-bear to the US.
The Trump administration is making an strive to deregulate the industry to enhance the importance of the industry. However at the identical time, the European Union decided to rob a heavy methodology to law with MiCA.
So, I used to be asserting that diversified areas and diversified international locations are attempting to come by a technique to administer crypto. Some are attempting to deregulate and simplify in repeat to elongate price for the economy. Others are attempting to administer to defend end customers heavily.
We’re in Switzerland, and Switzerland is in any appreciate times natty in discovering a balance, and up to now, it’s balanced, and I hope this could moreover be balanced the identical procedure in some unspecified time in the future.
Unnecessary to suppose, per chance blockchain obtained’t return to the manner it used to be 10 years within the past, the Wild West days of entire freedom. However right here’s in any appreciate times how every industry evolves.
Especially when we focus on monetary markets. Are you able to name me any of the monetary products without law? No, and it used to be in any appreciate times worship that, worship credit rating playing cards.
You be wide awake earlier than, credit rating playing cards had been in accordance with paper slips. It used to be not essentially regulated, and that’s why they had been plenty of fraud, appropriate? Then law got right here in, fraud went down, and but we composed consume playing cards this day. It’s appropriate the pure evolution of any important monetary product. And that brings me support to my earlier point.
So when we focus on traditional customers, not inappropriate actors, right here’s lovely as soon as UI is simply appropriate, nonetheless UI is going to be impartial appropriate appropriate because we bear plenty of side instruments, even ChatGPT, we appropriate mentioned, appropriate? AI helps to simplify interfaces. AI helps to work alongside with diversified programs.
Plus, I agree with there’s one which can bear some digital identities. There’ll probably be no need to resubmit your KYC on every single platform. So, all once more, support to your search records from. Yes, this could not be the identical as earlier than, and not using a Wild West, nonetheless composed, this could moreover be quite lovely for the absolute majority of customers, and the companies will probably be focusing on the simplicity of UI.
Ilya Volkov Discusses How Crypto is Remodeling Aged Finance (TradFi) and What the Future Holds
As that it is probably you’ll moreover look, we bear already obtained plenty of extinct banks actively working within the crypto situation. I appropriate brought this case this day on stage. On the final year’s Symposium used to be an instance from one in every of the oldest instruct-owned Swiss banks, one in every of the Swiss Cantonal Banks, with around 200 years of historical past.
They’ve decided to introduce crypto because they bear got two groups of prospects, the smartly to establish extinct prospects and the young and adventurous prospects, they once in a while mentioned that smartly to establish extinct prospects bear already invested in every little thing.
So that they invested in gold, they invested in diversified sorts of commodities. They already sold Tesla stocks, Apple stocks, and Google stocks, all excessive-tech things, and now they’re tense crypto because it’s clear that it’s the subsequent step.
And the monetary institution told us that it used to be clear that had they not launched crypto, they’d bear lost the extinct viewers that had been banking with them for the final 200 years,
On the diversified side, young prospects.
They had been asserting that it’s clear that if they enact not supply their young prospects crypto, they’re going to merely not come. So right here’s essentially the most convenient explanation of why extinct establishments are becoming a member of the crypto situation.
One can insist that this could lengthen competitors for companies worship us, nonetheless I would insist no, because it brings extra opportunities for partnerships. FinTech companies are in any appreciate times one step forward, as we’re exploring some fresh horizons, and we are able to create one thing fresh that is in a while being adopted by extinct establishments. Such collaboration is completely lovely.
As I mentioned, blockchain could moreover not be the Wild Wild West anymore, nonetheless there will composed be one thing fresh because companies worship us are in any appreciate times working on pushing the boundaries. So, it’s a relentless evolution process.
