from the Hard Rock Hotel in Las Vegas it's the cube covering no joke on 2018 brought to you by osho everyone welcome back to our live coverage here in Las Vegas for Osho Khan's first industry security conference dedicated to security in the blockchain it's presented by ho show and also the industry it's an industry conference it's not necessarily a host show cause I'm John Ford's the cue for our coverage our next guest is Kenzie Crone and vice president of business development prime trust welcome to the cube thanks for joining us thanks for having me here so crowdsourcing and crowdfunding all this has been a big part of it I mean terrorists are funding through Bitcoin you've got all kinds of things going on in entrepreneurial spaces so it's clearly the money's flowing with with with crypto what do you guys do if we're getting into some of the things that we want to talk about what is prime trust to take a minute to explain your business business model value proposition absolutely so prime trust is a trust company so it's a regulated financial institution that holds funds between transactions between businesses you could also use prime trust to created a trust account for an individual as well so what our value is in this industry is that we hold crypto assets which very few qualified custodians like us exist to do that so that's a really important part of bringing in institutional funding because institutions are looking for qualified custodians as a regulated place to keep funds and they want to get into crypto so it's a it's a very important part of the puzzle so custody and custodial service has been a big topic here at O joke on controversial on the keynotes as well because you know the purists will say hey like Andreas why don't we need custody if it's working it's just it's the same old guard with new faces new business cards it's not really revolutionary and that's on one answer on the other inspection is there's so much growth in activity we've got a trusted partners to actually help us manage the risk and do these things so you have again two spectrums what's the story what should people understand about these two dynamics well what I think yeah what I think the key note you're talking about the the idea is we are just trading one type of banker for another type of banker right that's happening anyway so you are you're trading one type of financial system for another type of financial system the question is what does that look like and how can we be secure and safe in that space right personally I'm a big fan of anything that requires some kind of a license right and it's not because I think it's really fun to go through the bureaucratic process of getting a license or filling out paperwork but it's really because that once you have a license that license can be taken away from you if you misbehave right and that's really important so if you're following the laws that are set forth that are designed to protect people and then you break those laws then you're not you're not allowed to do that anymore right so that's what you get out of having regulation involved in this space is its protection and it's making sure that they're really by the way the regulation is happening anyway so that's another the regulation is happening anyway and that's why these very smart people who are managing billions of dollars are looking for that they're not saying oh cool you have a website that with technology that I don't understand you're telling me that you can safely hold something but there's no other protection there there's no liability you could just mount GOx me right and so there's got to be a way to get some sort of some sort of regulation in there and I know there's a lot of opinions in the space and obviously I'm very much on the side of regulation yeah and it also made some balance within the day those are polarized positions but I think the industry recognizes growth by recognizing the domicile problem of companies and governments so the question is you know really than a licenses legitimacy is people want legitimacy trust and growth yes at the same time but the other side says is hey you know who are those people making the laws so who's taking what away so again this is the ecosystem will solve these problems in my opinion and I believe that you know as much as I love the purist view and I think this architectural technical things that make that happen the end of the day is the self-governance of the community really is is what me happen here and so that's where the growth comes in because if real money is coming in to the sector you got to have parties that are trusted it's my opinion all right so what do you think about the conference here what's your take away so far I'll see its kind of diverse background you got you know people walking around with colorful costumes too you know buttoned up bankers and FBI agents and NSA agency folks yes we're in a really funny time in this space I think because you still have yet the Bitcoin garb and the like you know the flashing glasses and and then you've got people who spent 20 years on Wall Street and now they're in the space so I've seen that actually a lot lately in the last year at these conferences and it's very interesting I love when both sides can come in with an open mind to the other because you think there's something to be learned on both sides absolutely it's so for the people who have been in the traditional regulated space they are getting all this inspiration and the possibility of doing things differently the system that the financial system that we have now is one it's essentially you know a very old house that's just been added on to and built and there's corridors going into stairways that you know don't go anywhere right and that's that's something that needs to be fixed and and it is being fixed well Security's a driver in all this and I think one of the things I've observed you'd love to get your reaction to is you have the crypto world that's certainly changing a lot of in dynamics on the global scale you have a cyber security and then you have fin tech so you guys this is where everything I think is a melting pot which is interesting you have all these things happening but at the center of all this is security absolutely it's almost like we're all swimming out to the to the raft and whoever gets there first and wins a security model wins at all well I thought I think well I think this the conversations all threads through security so the cyber conversations we've had are like okay Cyrus security for individuals and nation-states crypto currency for protection and freedom and and you know in immutability Ledger's almost great supply-chain aspects and then you get the FinTech which is like hey people want to do business so you have the entire changeover on the financial services side all kind of happening yeah yeah I think that they're all gonna be contributing to a solution it's it's each one is going to learn we're really open-minded at prime trust we want to build and grow we know that this we're in the most embryonic stage of this and so we don't know exactly what's gonna come next or what's going to be down the road and we want to be informed by everybody that's around us at a place that makes sense do you have to work with with the industries so take me through I want to ask you a question about your job so we'll take me through the day in the life of what's going on in prime chess what are some of the things that you guys do customers and what are they asking for what's like what's the some of the issues you guys are solving what did some of the dynamics can you share some color around that sure so our main services are so we are a trust company so we do escrow services and we do compliance on all of the escrow that comes through our ICS and stos that come through so that's a ml and kyc that's really important what distinguishes us I think is a real a real game changer for our customers is that we're really a technology company and we have API stocks that allow for companies to build their businesses on top of integration so that they have customers coming in and making accounts on their their their website their dashboard their platform and that's all feeding directly and they're actually making an account so you're building your you're targeting folks saying hey we'll take care of the heavy lifting on kyc ma ml and all the stuff that needs to happens that's heavy lifting that's around DoDEA services custodial service all comes through you yes so it comes in we can hold it we can review it you're not having asset managers also holding funds which is a problem so you're not needing to touch the funds at all you can just you can just do you at you're trying to do in this space and we'll take care of that aspect that's entrepreneurial side that's the stos and the IC knows what's the alternative for the your customer build their own go with unknown shop of their other so what so if I if it's a great service sounds like a great service and takes a lot of pressure off the build out of a opportunity what's the alternative if someone doesn't go with you well there's a few I mean it's to hold your own funds right figure that out on your own in the case of many different types of funds and businesses their boards are not okay with that because it's it's too much risk and liability so in many cases the alternative is don't do it yet just keep watching and waiting and wanting to be in crypto but you can't yet so and when we're seeing that a lot that there's like a sigh of relief when we finally have this conversation and it turns out it's extremely easy to make an account with us and suddenly that major roadblock is just gone so that's what that's the career opportunity takes the risk off the table little bit and accelerates the opportunity when the sec bomb decrypt yesterday was reporting that the sec in the united states is actually going into IC OS and having them return their money because of of course they are like well of course they are that makes sense that's they were always going to do that just because they make a statement and slowly decide how to act because look last july is when they said we're going to do this and most of the crypto community said you can't because we really don't want you to and we are gonna tell ourselves all these excuses for why it's not possible for the US government to actually pursue this and why they won't really do it because they're dinosaurs and that's just not how the government works so the way the government does work is that they everything takes a long time and it's all thought through and there are a million different approval processes within the system and they don't tell you anything until they're really ready to stand by whatever same and they make so they leave you in the dark for eight months a year whatever well you guys have a good opportunity so I had to ask the question what's the business model how does someone engage with you guys sounds likely to go in and create an account is there a fee involved what's the fee can you share the engagement that somewhere would would engage with you young sure so they can visit our website which is prime trust com they can email me at Kinsey at prime trust pretty easy and we have different pricing for escort services versus custodial services and we actually pay interest on any Fiat that we held in custody and we charge a monthly basis point fee based on how much is in in custody with us and where's you guys located was the company located headquarters this here in Nevada in Las Vegas I'm based out of Los Angeles we've got some team members in San Francisco in New York as well that's awesome so it's a question how did you get into the space what's your story I got into the space I started out an equity crowdfunding so I was working with companies that were raising capital under A+ reg D and reg CF and I was in the trenches with them figuring out from like the very earliest days how what the laws were gonna look like you know launching companies the day the regulations came out barking into effect and then sort of working through that so it's been an adventure on that side and then my first experience in crypto was at an at a meet up in Santa Monica where companies were talking about raising 40 million dollars in ten seconds and that and they were also pitching in methods like I knew were not legal so it was it's kind of just dropping to me well one was how did you manage to get that many people to want to invest in you so quickly because it's a struggle for for many companies and then so that's amazing I want to learn more about that and then also did you know that there's a more legal way to do this and that you're putting yourself at a lot of risk so that made me really want to jump in and figure this out so you got totally intoxicated by the Wild West yeah there's a problem they gotta be solved in there it's kind of fun at the same time because you know all those those days are over thankfully so because you know it should be it should be more legitimize and it is getting there I think security tokens are a good sign that people are moving border security tokens at least in the u.s. the legal firms the service providers are starting to get hold up on some of the new things and that's good still expensive to run the run the process it's like own public almost as a start-up it's almost ridiculous and I kinda had the same view we're the gaps in your opinion so you now look at the crowdfunding which has been great you see all that stuff happening as essentially as a decentralized you know efficiency around disrupting venture capital and other fundraising which is great where are the gaps in your mind from a service provider standpoint from an ecosystem where's the to-do items what needs to get done faster where are the gaps I think everybody's building out their technology to make everything easier currently there's a lot that's done manually or just to manually and needs to be more automated and then I think there's also a lot of education on both sides that needs to be done that's that's I think a huge gap there's a tendency to create echo chambers and so you end up talking with people who just won't even consider the other side of it with the possibility for change in whichever area they're in and that is I think we are gonna see that come together but that tends to hold people back because you thanks for coming on and sharing your insights great to have you on the cube and good luck with prime trust thank you okay this is a cube live coverage here at hosts show con I'm John furrow your stay with us more live coverage after the short break