Otonomos is a blockchain startup that helps entrepreneurs incorporate their businesses on digital distributed ledgers, allowing massive disintermediation in traditional processes.
Otonomos is an online service that allows users to form, fund and govern their companies on the blockchain, a disruptive technology that has the potential to allow massive disintermediation and reduce friction, according to Han Verstraete, a former Goldman Sachs banker, now co-founder at Otonomos.
„Your incorporation, your funding, your governance, will become so much more frictionless than before,“ Vestraete said in a video interview.
This new method of incorporating and governing companies will fundamentally change everything, he argued. „We are using blockchain technology to bring to digital what has been done in an analogue way for so long.“
According to Vestraete, blockchain technology has the potential to disruptive many, if not all, business models, notably by dematerializing a company’s shares certificates, making them digital.
Going into the details, Otonomos provides a platform where users can transfer equity peer-to-peer, remunerate collaborators, invite new private investors, and get funding from the crowd at large. The platform also allows users to automate governance of their companies using self-enforceable smart contracts.
„So for example if we are going to help a company raise funds by an equity crowdfunding proposition we will be disintermediated heavily an expensive process. If we are going to allow people to incorporate on the blockchain in the same way that you create your bitcoin wallet you will hold your shares of the company; we are eliminating an army of lawyers and compliance people who are in a way a drag and a fixed cost to many organizations. If we are going to automate the governance of a company, we are again heavily disintermediating. So it’s a disintermediation story.“
Not only should this new method eliminate the need of an army of lawyers and compliance experts, it should also heavily disintermediate many of the areas from which banks are traditionally extracting huge rents from end users by intermediating transactions, Vestraete said.
Headquartered in Singapore, Otonomos is an alumni of Startupbootcamp Fintech Singapore 2015, a program backed by the city-state’s central bank, the Monetary Authority of Singapore.
Speaking about his decision to integrate the prestigious program, Vestraete said that apart from the money, Otonomos is interested in meeting with new potential partners and people who might be interested in being involved with the company.
Additionally, he highlighted that Singapore has a vibrant startup ecosystem and is located in a strategic location. Vestraete added:
„[In Singapore] you have the incredible feeling of being in a place where it happens, where it’s happening, where more and more people are also looking to fund companies, but [also] where you have the demographics and place. You have a certain energy on the startup scene combined with what is a huge market; [that being] Singapore, India, China, Indonesia, Malaysia. So that’s the main reason we are here.“
Watch the full video presentation:
[…] Otonomos allows users to form, fund and govern their companies on the blockchain, a digital distributed ledger. By using blockchain technology, Otonomos provides a new way of incorporating and governing companies, moving towards the digital era. […]
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[…] Otonomos is a blockchain startup that helps entrepreneurs incorporate their businesses on digital distributed ledgers, allowing massive disintermediation in traditional processes. […]