Learn more abou key parties involved in the Treasury Management Product
Below is a list of all the key parties involved in OpenTrade Treasury Management Product and their roles and responsibilities in supporting OpenTrade.
You can learn more about the legal relationships between these entities here.
Open Trade Technology Ltd. ("Platform Provider")
London headquartered software firm responsible for developing & maintaining the OpenTrade Platform including the web app & blockchain protocol. Lead entity responsible for coordination across key parties.
OpenTrade SPC ( "Borrower")
A bankruptcy remote Cayman Segregated Portfolio Company (SPC) operated by an independent board of directors. OpenTrade SPC is currently the only Borrower approved for the Treasury Management Product. OpenTrade SPC is the financial counter-party for Lenders and broker/dealers, banks, and custodians.
OpenTrade Foundation is the sole shareholder of OpenTrade SPC. It serves to make OpenTrade SPC bankruptcy remote by ensuring that Five Sigma and Open Trade Technology Ltd have no ownership stake in OpenTrade SPC, meaning its assets would not form part of their bankruptcy estates in the event either party were to become insolvent. The OpenTrade Foundation's supervisor is Leeward Management, a leading corporate service provider in the Cayman Islands.
Five Sigma Finance Ltd. ("Investment Advisor")
Five Sigma Finance Ltd. ("Five Sigma") serves as the Investment Advisor. Five Sigma is a London-based, FCA regulated investment firm with over $800M AUMA. They are responsible for managing the day to day operations of OpenTrade SPC and its segregated portfolios, including its trading activity and the purchase and sale of loan collateral, managing the underlying portfolio of real world financial assets, maintaining cash flow models, and assisting in the processing of fund transfers, loan draws, and loan repayments. Five Sigma is an appointed representative of Capricorn Fund Managers, which is authorised and regulated by the Financial Conduct Authority (FCA).
Vantru serves as the Security Trustee, which holds a master security interest in the underlying loan collateral on behalf of Lenders. In the event of a default, Lenders can instruct the Security Trustee to take ownership of loan collateral to be liquidated or held to maturity so as to repay loans in default, pursuant to the Security Trust Deed executed between OpenTrade SPC and Vantru and as referenced in the Master Lending Agreement signed between OpenTrade SPC and Lenders.
Circle Internet Financial LLC ("Circle")
Circle is the issuer of USDC, the world's second largest stablecoin by market capitalisation. Circle serves as the custodian for USDC the Borrower receives from loans and provides the ability to always mint and redeem USDC 1:1 with USD. Circle is a regulated and licensed money transmitter in the US.
Cash Management Bank(s)
Regulated financial institutions that provide USD accounts, payments, and settlement for OpenTrade SPC. These USD bank accounts are used to mint and redeem USDC for USD and to settle the purchase and sale of loan collateral.
Broker / Dealer(s)
A network of regulated broker/dealers through which OpenTrade executes trades for the purchase and sale of loan collateral, such as US Treasury Bills.
All loan collateral is held in custody accounts with regulated custodians. Collateral is held in segregated accounts in the name of the Segregated Portfolio according to FCA client money and asset regulation (CASS).
Reed Smith LLP
Reed Smith LLP is a global law firm with more than 1,500 lawyers in 30 offices throughout the United States, Europe, the Middle East and Asia. Reed Smith is lead counsel to OpenTrade, responsible for developing and maintaining the legal and regulatory framework underpinning the Treasury Management Product.
Kroll is the leading independent provider of Financial and Risk Advisory services. It was established in 1932 and is headquartered in New York City. Kroll is the developer of OpenTrade's KYC/AML framework and provides outsourced due diligence and compliance services, ensuring that KYC/AML activities are performed to a high standard during onboarding and on a continuous basis.