The Big Whale: Cometh has just obtained enhanced PSAN (Service Provider on Digital Assets) registration and is launching into cash flow optimisation for businesses. What is the logic behind this move, given that you were originally a Web3 onboarding specialist?
Jérôme de Tychey: Cometh originally positioned itself as a Web3 onboarding expert, simplifying the integration of users into blockchain technologies. We quickly saw growing demand from Web2 companies wanting to experiment with Web3, as well as Web3 start-ups looking to expand their audience to Web2 users.
This dual dynamic led us to work with iconic companies like LVMH or innovative players such as Gnosis and Worldcoin. But a common need emerged: understanding and complying with regulations, particularly the European MiCA (Markets in Crypto-Assets) regulation, to avoid any legal risk.
This observation was the catalyst for our move to become PSAN. The initial objective was to reassure our existing and future customers that our solutions were compliant. But it also enabled us to think about new opportunities. For example, we realised that the efforts devoted to making user onboarding more intuitive could be applied to services dedicated to businesses, particularly in the management and optimisation of their cash flow using blockchain.
Just how does your cash flow optimisation service differ from traditional banking solutions?
Traditional banking solutions mainly offer two options: term deposits and savings accounts. Term deposits allow you to lock in funds for a set period of time with slightly enhanced returns, but significant penalties for early withdrawal.
Savings accounts, on the other hand, offer very low rates, often below inflation. These products lack flexibility, which can be a problem for businesses needing quickly accessible cash.
Our solution is based on the use of stablecoins, digital assets backed by currencies such as the euro or the dollar. We offer a seamless process for converting euros into stablecoins via partners like Monerium. Once these stablecoins have been obtained, they can be placed on DeFi protocols such as Aave, offering much higher returns than banks, often with no penalties or minimum terms. By cutting out the middleman, we maximise returns for our customers while retaining total flexibility.
Many companies offer returns from cryptos. How do you differ?
First of all, we have built an infrastructure native to the blockchain, based on "smart accounts". This allows each user to have a dedicated on-chain account, unlike more traditional solutions where funds are often pooled in a centralised wallet. This architecture provides greater transparency, better security and, above all, the ability for users to regain full control of their assets if they wish.
Following on from this, our model focuses on a simplified experience and optimised operational costs thanks to Account Abstraction (read our analysis) . This allows us to reduce the costs associated with managing and deploying funds, resulting in more competitive net returns for our clients.
Where many companies operate more as a centralised exchange offering DeFi products through a centralised interface, we provide a technical solution directly connected to the DeFi ecosystem. This direct connection eliminates certain intermediaries, reduces friction and improves companies' flexibility in managing their digital assets.
What is your main target audience for this service?
Our initial target audience includes small and medium-sized businesses, often looking for modern and efficient solutions to better manage their cash. These organisations often have temporary liquid assets - such as project advances or funds waiting to be invested - which they would like to make profitable without taking on too much risk. For them, our solution is a simple way of maximising their returns while accessing blockchain finance without complexity.
We are also seeing growing interest from large companies, particularly those that have already explored cryptocurrencies for experimental purposes. These often more mature players are now considering investing significant amounts in stablecoins to diversify their cash management strategies. With finance directors increasingly aware of the benefits of DeFi, we are well positioned to meet this demand.
And what is your business model for this service?
We have opted for a model based on a commission deducted from the returns generated by users. In practical terms, if a protocol like Aave offers a gross return of 8%, we retain a small proportion of this, generally around 0.3 to 0.4%. This model ensures that we only get paid if our customers actually benefit from returns, which aligns our interests with theirs.
In return, we manage the entire technical infrastructure, including on-chain transactions, to provide as seamless an experience as possible. Thanks to our optimised architecture, we can also maintain very competitive execution costs, even for companies new to blockchain. This model allows us to be accessible to a wide range of customers, while guaranteeing a high quality of service.
Your product is based on custodial wallets, unlike your usual solutions, which are non-custodial. Why this choice?
We made this choice to meet the specific needs of businesses, which often prefer to delegate the technical management and security of their assets to a trusted third party. In this context, we act as the primary signatory for transactions. This enables simplified management while offering a high level of security through the use of dedicated smart accounts, managed via multisignature solutions.
However, we retain significant flexibility: if a company wishes to regain control of its assets, we can transfer all the keys and management rights to it. This hybrid model allows us to combine the advantages of custodial management for businesses with the non-custodial philosophy that remains at the heart of our DNA.
You offer returns "up to five times higher than banks". What DeFi protocols underpin these performances, and how do you guarantee their reliability?
Currently, we rely mainly on Aave, a well-established DeFi protocol recognised for its transparency and security. Aave is widely used in the ecosystem, which gives us great confidence in its robustness and ability to offer competitive returns. Interest rates on stablecoins on Aave typically range between 5% and 10%, well above what traditional banking solutions such as savings accounts or term deposits offer.
To ensure reliability, we combine the use of these proven protocols with a secure asset management architecture. All funds are held in multi-signature smart accounts, a solution recognised by the AMF as compliant for holding digital assets. We also have rigorous internal processes to continuously audit and monitor the protocols we use. This allows us to provide our customers with the highest level of security while maximising the returns they can achieve.
>> Stani Kulechov (Aave): "Traditional financial institutions will continue to flock to DeFi"
Could you offer returns based on Morpho vaults, which today offer annual returns sometimes in excess of 30%?
Vaults like those offered by Morpho are very attractive indeed. They represent an interesting opportunity for companies ready to explore more sophisticated return strategies. However, integrating them into our offering would require in-depth analysis. We need to ensure that these strategies meet the standards of security and transparency that we have defined, while remaining compliant with the expectations of regulators such as the AMF.
Proposing such high returns also means better informing users about the potential risks. Unlike the more moderate returns of a protocol like Aave, complex vaults can incorporate more volatile elements or depend on multiple market factors. If we decide to include this type of solution, it would be within a well-defined framework, with educational tools so that companies understand the underlying mechanisms and risks.
>> Read also - Aave vs Morpho: the great lending match
Which service providers will be responsible for converting companies' euros into cryptos?
Today, we are mainly talking to Icelandic start-up Monerium (which issues the regulated stablecoin EURE). However, this choice is not exclusive, and we are looking at other providers to identify those that offer the best solutions in terms of ease of onboarding, liquidity and smooth processes.
>> Lire aussi - Thanks to Forex, Monerium is set to revolutionise the stablecoin market
Your strengthened PSAN gives you the opportunity to quickly transform this licence into MiCA approval, which is mandatory to operate in Europe from 2025. What is the timetable?
As soon as we obtained our enhanced PSAN, we began the conversion to MiCA authorisation. Unlike a traditional PSAN registration, our enhanced status already attests to our compliance with the main MiCA requirements. This puts us in an advantageous position, as we have anticipated the most stringent criteria of this new European regulation.
The MiCA window, managed by ESMA (the European Securities and Markets Authority), will officially open in January 2025, and we are ready to submit our file from that date. In theory, the process of converting to MiCA authorisation can be completed in 60 days. Our application is already robust: we just need to make some minor adjustments, such as certain administrative formalities relating to our structure. We hope to obtain approval quickly and thus confirm our role as a pioneer in a clear and harmonised regulatory framework.
>> Crypto regulation: how to choose the right regime in Europe?
Where do you see Cometh in five years?
Over the next five years, our ambition is to become a leader in wallet infrastructures for businesses. With the arrival of Account Abstraction on Ethereum, smart accounts will revolutionise access to the blockchain by simplifying the user experience. We want to be at the forefront of this evolution by providing scalable and intuitive solutions for businesses of all sizes.
Our vision is to enable every business to benefit from the advantages of blockchain without having to master the complex technical aspects. By positioning ourselves as a key player in this transition, we hope to contribute to the mass adoption and seamless integration of Web3 technologies into the traditional economy.
Cometh raised €10 million in 2022, could you again seek investors to fund your development?
It is indeed conceivable, although we are not in an emergency situation. Since we raised our capital, we've strengthened our market position and developed products that are attracting interest. Today, we are receiving expressions of interest from partners and investors who are following our trajectory closely, which is enabling us to think strategically about the opportunity to accelerate further.
If we decide to raise funds, it will be with specific objectives in mind: to develop our international presence, particularly in the United States, and to strengthen our technological capabilities to meet growing demand. We remain open to foreign investors, provided they share our long-term vision. Our priority is to maintain a balance between rapid growth and consolidating our foundations, while remaining true to our mission of simplifying access to blockchain for businesses.
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