Unlocking the Power of Defi for Investment Advisers
Financial planners are used to dealing with change. To begin the week with new regulations, changes to the tax code and a stock market bouncing around like a pinata is not uncommon.
And then a client calls and needs 50k for a new boat. Yesterday.
Financial professionals are not required to adapt to change; we all know many who don’t. But while the good advisors adapt to change reluctantly, the great ones do so eagerly. These fiduciary financial planners wade into unchartered territory because, on the other side, they may find a better deal for their clients.
Good advisors adapt to change reluctantly, great ones do so eagerly
Disrupting a hundred trillion-dollar investment industry isn’t easy. It requires patience, persistence, and a conviction that your clients are worth fighting for. Financial planners battle for every last penny of yield, every day they can retire a client early and every basis point cut from their investment expenses.
And now the battle has gone digital. Fiduciary financial planners see the potential that blockchain technology and crypto bring to financial services. They see that regulatory and technological hurdles that stand in our way will be overcome, and the clients they have committed their lives to serve will be the primary beneficiaries.
Defi Steward is here to support this group of financial advisors. We may be early, but we are also right. Defi Steward is developing solutions to help advisors capitalize on the advantages the Web3 economy will bring to their clients.
If there is one thing the financial services industry is good at, it’s blurring lines. We call salespeople “fiduciaries,” investments pegged to the stock market “insurance,” and Montecarlo retirement simulations “relevant.”
Wall Street is already manipulating Defi in the same way. Celsius, Three Arrows Capital, and now the FTX debacle brought the industry a black eye that many think exposed the flaws of Defi. This couldn’t be farther from the truth.
In reality, it revealed the glaringly obvious landmines present in our everyday financial system. If your financial product looks like the steps below, you aren’t Defi:
1. Deposit Money
3. Profit 80%
Financial planners understand that magic 80% returns (let alone 800%) aren’t real. These aren’t real in traditional or decentralized finance. Only returns where the rules are clear, all intermediaries have been identified, and compensation disclosed to the end user are relevant.
When clients earn money utilizing the benefits of Defi, they must keep it. This is why Defi Steward is building solutions on top of non-custodial wallets.
A non-custodial wallet allows the client to maintain complete control of their money. It’s censorship resistant from the government, big tech, and any threat-de-jour that may come along. And it can all be done safely.
When properly implemented, the client is not at risk of losing their assets, being scammed, or forgetting their private keys. We can bring these solutions to clients securely.
Let that sink in. For the first time, clients do not have to give up control of their funds to participate in the financial system.
Defi Steward OS
To safely guide clients away from the gatekeepers of traditional finance and into a world where they control their own money, advisors will need better solutions. Defi Steward is building a system compliant with Registered Investment Adviser (RIA) regulations that help advisors grow their firms.
First and foremost, Defi Steward is compliant. Our digital asset management system is built on the best legal research produced for the RIA industry. Investment Advisers can initiate trades, avoid custody, and access any data regulators want to examine.
Second, Defi Steward is scalable. Advisors are continually trying to balance treating their investments like a one-size-fits-all product while remaining efficient and growing their practice. Defi Steward achieves this critical balance by allowing you to customize each portfolio of digital assets while monitoring your entire book of business from one dashboard.
And lastly, Defi Steward is like the Blockchain itself: never finished. The digital asset space is evolving and will continue to provide advisors with unexpected twists and turns. This is why Defi Steward isn’t just a piece of software; it’s an operating system to navigate the innovation crypto is sure to offer us.
We will evolve alongside this exciting space and give advisors the tools they need to do their job.
Steward may not be the sexiest word, but it’s one of the most important. A Steward takes on the responsibility of navigating others through fear, uncertainty, and doubt. They boldly advocate for the good of their client, often putting them at odds with traditional finance and the regulators.
Defi Steward is here to support fiduciaries by providing advisors access to compliant, secure, and insured digital asset solutions. While advisors are fighting for their client's digital rights, Defi Steward is fighting for independent advisors everywhere.
If you are a fiduciary defending your clients’ economic freedom, we’ll see you on the battlefield.