KXCO began life as Knightsbridge, founded by our chairman with the aim of trading equities before moving on to foreign exchange (FX) markets
With the advent of cryptocurrency, Knightsbridge adapted to the markets, seeing opportunities in the trading, creating and listing of tokens. More recently through acquisitions and partnerships evolving into a Blockchain technology and solution provider for trading, financial markets and services.
The blockchains genesis with the bitcoin network has shown its inability to evolve to meet the needs, concerns and issues it is presented with. Energy consumption being the most recent, as users, businesses and governments become both more aware and more accountable for the environmental impact of the systems and technology they use. Ethereum has tried to address this with its recent merge, but it’s strength in decentralization has and will continue to be the noose around its neck, energy costs, computing power and even the very nature of having many stakeholders who vote to determine the fee structures represent barriers to entry and risk.
However the concept of the blockchain has wide reaching uses and benefits. It’s transparent, immutable record keeping creating a trustless system between machines, people, applications and entities. Decentralization has many advantages including ownership of user data, public accountability.
Decentralized finance has grown exponentially, promising to make millionaires overnight with very little regard for real world applications, functional business and honest, legitimate returns, it has shown it is prone to scams targeting users in an ever increasing sophistication. Just as with Ponzi, Madoff and Belfort – this new opportunity has created an opportunity for exploitation of unsuspecting investors looking to make a quick profit and through their own lack of knowledge, experience or investigation leaves them easy targets.
There are many areas where public record, verifiable transactions and fair distribution of data, rewards and proceeds that are all possible using the blockchain can be of use for the finance industry. Our goal is to provide tools, services, products and solutions that utilize all the benefits of Blockchain technology with as few of the risks, costs, weaknesses and liabilities as possible, evolving with and for our clients, users and stakeholders to offer relevant, affordable and reliable solutions.
Global financial markets power economic growth – be it through bonds, capital issuances or other financial mechanisms their impact and influence cannot be discounted. However the technology that powers these tools is slow to adapt and keep up with change. Fear of the unproven, lack of transparency or general lack of understanding means that access to and development of is limited.
This is where we believe the blockchain can be a major step improvement when applied to digitizing assets, bonds, equities and more.
In the U.S., capital markets fuel the economy, providing 75.4% of equity and debt financing for non-financial corporations. Capital markets enable debt issuance, a more efficient, stable, and less restrictive form of lending for corporations. Debt capital markets are more dominant in the U.S. at 77.5% of total financing, whereas bank lending is more dominant in other regions, at 25.5% on average.
By bringing these markets and products on to the blockchain will allow the following:
Increased speed to market – the ability to digitize instantly, allowing for creation, syndication and deployment theoretically within hours
Increased clarity and confidence – with the ability to attach critical documents and ensure transparency of contract and data
Increased security – Blockchain technology makes it more difficult for fraudulent activity and ensures that all parties are engaged in a trustless manner
In 2021, U.S. Treasury securities issuance reached $5.1 trillion, a 31.9% increase from the prior year. Long-term fixed income issuance rose 7.7% Y/Y to $13.4 trillion, while mortgage-backed securities (MBS) issuance increased 7.3% Y/Y to $4.6 trillion. However, corporate bonds fell 13.9% Y/Y to $2.0 trillion. U.S. long-term municipal bond issuance decreased 0.9% Y/Y to $480.4 billion, while federal agency securities decreased 44.6% Y/Y to $692.9 billion. Meanwhile, asset-backed securities issuance volume rose 91.2% Y/Y to $581.9 billion.