How Decentralized is the Bank of Hodlers?

Our business logic will be written on the Ethereum smart contract (and will be written on other smart contract platforms), and it’s using decentralized protocols in every place that we can. For every place that can’t, we have to be custodians because we're going after the entire market. We’re trying as hard to be decentralized and we are - in the avenues that are possible in the technology landscape.

What are we - Custodians or non-custodians?

Between being custodians and non-custodians, we’re a combination of both and we let you choose on the degree of the spectrum that you want to be on. If you don’t mind us being the custodians, you can earn interest and use payments instantly, etc. If you want to be the sole custodians, you can use the ease of use and last man partnerships that we’ve built, but you can’t earn interest.

Why are we partnering with firms with a banking license instead of acquiring our own license

If we want to do direct-to-account operations where we actually connect the crypto world with the fiat world, we have to be in compliance with the regulatory authorities that we and our users fall under. We, as a firm, have to be compliant with the Singapore laws. We have to be compliant with the American laws if our users are from the U.S. Similarly, if our users are from the EU, we have to be compliant with the EU laws. Not only do we have to comply with the Singapore laws, we have to be compliant with the users’ underlying jurisdiction laws.