The secretive startup Cryex becomes a little less secretive. The company’s CEO now reveals her plan: To create a digital marketplace that will lower the cost of exchanging currency with up to 90 per cent.
On Thursday morning Breakit reported that two of the founders of Cryex have left the company. However, operations does not seem to be slowing down.
Cryex is an ambitious project, that raised $10 million from investors including Northzone last year. Management has, however, been very quiet about the company’s plans.
Now, CEO Lotta Eek, reveals a bit more.
“If you look at how the stock market has developed over the past 20 years, we see that the commission, the price of trading, has fallen drastically. With today’s modern systems you can buy shares for approximately 1 million SEK and pay 200 to 300 SEK in brokerage commissions. You can compare that with 1990. Back then, you had to pay a commission of 3000 SEK to buy Swedish shares and 6.500 SEK for foreign companies – for the same amount of shares. So, in equity trading this has changed a lot, but on the FX market it’s still very expensive”, says Lotta Eek.
Stocks are trading on an digital exchange, where buyers place orders that are matched against the seller automatically. With currency trading, it’s a different story.
“Even a medium sized company must pay as much as 1-1.5 per cent or more to exchange currency. Our goal is to reduce the costs by up to 90 percent. So the transformation that we are trying to create is quite dramatic”, says Lotta Eek.
Cryex business plan is to provide small and medium-sized enterprises faster and cheaper currency exchange with an automated process. The company is building a digital marketplace for currencies and a clearinghouse.
Before the platform can be launched, Cryex must wait for an approval from the Swedish regulator Finansinspektionen.
Cryex marketplace and clearing house is being built in cooperation with Cinnober, a Swedish a Swedish provider of trading platforms, which is listed on Nasdaq First North.
The company also has established a partnership with Barclays in London, to provide cash settlement.