Welcome back to Talking Success, one of the Best FinTech podcasts globally! In this episode, Darren chats with Maxim Galash, CEO at Coinchange. Max’s venture has seen significant transformations since its inception, evolving from a retail-focused DeFi platform to providing sophisticated enterprise solutions. He shares his journey, lessons and insights. Coinchange is a Canadian fintech company founded in 2018 with the mission to enable access to a fair, innovative, and inclusive financial future for all.
Max and his business partner Surge launched their venture in 2020, initially targeting the retail market with a DeFi platform. The platform aimed to provide high-yield, low-risk investment opportunities to individual investors through advanced algorithms. Their innovative approach, dubbed “Wall Street to Main Street,” garnered significant attention, amassing 150,000 retail customers and raising $10 million in funding.
However, the crypto market’s volatility, particularly the major bankruptcies in 2022, necessitated a strategic pivot. Max and Surge decided to transition from a retail focus to serving enterprise and B2B clients.
Pivot to Enterprise and B2B Solutions
The shift towards enterprise solutions involved developing services for crypto exchanges and wallets globally. Max’s company now offers several key products:
These products cater to a diverse range of clients, including crypto exchanges and payment providers in emerging markets such as Argentina, Poland, Serbia, and India.
For those unfamiliar with the crypto space, Max explained that DeFi (Decentralized Finance) refers to financial applications built on blockchain technology. These applications facilitate various activities such as trading, lending, and payments without the need for a centralised intermediary. Earnings in DeFi come from participating in these activities, often through a process called staking or yield farming.
Enterprise clients are drawn to Max’s solutions for various reasons. In emerging markets, the need for stablecoins and yield generation drives demand. These markets often experience high inflation, making stablecoins a preferred store of value. Max’s offerings help exchanges and payment providers compete with larger players like Binance by providing advanced financial products without the need for extensive technical and financial resources.
In more developed markets, the products serve as retention tools, helping companies keep customers within their ecosystem by offering attractive earning opportunities and practical off-ramp solutions like gift cards.
Regulatory Challenges and Adaptation
Navigating the complex regulatory landscape is a significant challenge for any crypto business. Max’s startup works closely with its partners to ensure compliance in various jurisdictions. While the company provides the technical infrastructure and management services, it relies on its partners to handle the regulatory aspects, such as marketing the products and managing customer funds.
Looking ahead, Max revealed exciting plans to launch non-custodial versions of their existing products. These solutions would allow clients to manage their assets directly on-chain without a centralised counterparty. This move aims to cater to privacy-conscious users and platforms that prefer not to custody client assets, such as MPC wallets like Ledger and MetaMask.
The journey of Max Galash and his crypto startup exemplifies the dynamic nature of the industry. From a retail-focused DeFi platform to a provider of sophisticated enterprise solutions, the company has continually adapted to market demands and regulatory changes. As they venture into non-custodial offerings, Max remains committed to delivering innovative, revenue-generating solutions to clients worldwide. This true partnership model ensures that integrating these products not only enhances the client’s platform but also opens new revenue streams, making it a win-win situation for all involved.
Coinchange recognises that the world of crypto and DeFi can be complex and intimidating for newcomers. To address this, they place a strong emphasis on education and support. The company offers comprehensive resources and guides to help clients understand the intricacies of DeFi, from basic concepts to advanced strategies. By empowering clients with knowledge, Coinchange ensures that they can make informed decisions and maximise the benefits of their services.
As Coinchange continues to grow, expanding its global reach is a key priority. By targeting emerging markets, the company taps into regions with high potential for crypto adoption. These markets often face challenges such as unstable local currencies and limited access to traditional financial services. Coinchange’s solutions provide a valuable alternative, enabling individuals and businesses in these regions to access stablecoins, earn yields, and engage in the global financial ecosystem.
Innovation lies at the heart of Coinchange’s mission. The company’s dedication to developing new products and improving existing ones ensures that they stay ahead of the curve in the rapidly evolving crypto landscape. By continuously exploring new technologies and methodologies, Coinchange aims to offer cutting-edge solutions that meet the diverse needs of their clients. This commitment to innovation positions Coinchange as a leader in the DeFi space, driving the future of finance.
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates independently of a central authority, such as a government or financial institution.
Cryptocurrencies use blockchain technology, a decentralised ledger that records all transactions across a network of computers. This ensures transparency and security.
Coinchange is a digital asset management platform that offers innovative financial services, including high-yield savings accounts, automated trading, and investment strategies for cryptocurrencies.
Coinchange supports a range of popular cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), USDC, and various other stablecoins and altcoins. The list of supported assets is regularly updated to include new opportunities.
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