Richard Olsen is years past many of his crypto colleagues in age and experience, but the Lykke founder still wants to reinvent finance. He tells finews.asia how, after a landmark deal.
Sporting a bicycle, wool pullover, rimless glasses, and shaggy hair, Richard Olsen seems more at home in academics than in the slick banking scene.
But theory isn't what the 65-year-old Olsen is pursuing: «Reinvent finance, please,» is his demand. His crypto start-up Lykke aims to do exactly that. With enthusiasm nearing that of a fresh lottery millionaire, he tells finews.asia how he parlayed a 2015 white paper into a 100-strong company that has raised $15 to $20 million.
Younger Colleagues
Swiss-based Lykke isn't Olsen's first attempt: more than 20 years ago, he co-founded Oanda, a global currency trading platform that was sold to a private equity firm this spring.
«I'm the great-grandfather», Olsen said of his expertise and experience versus other crypto founders. «I learned so much out of my earlier projects. That might be something I have a leg up on with my younger colleagues.»
Scrubbed With Toothbrush
He has infected Tamedia, a Swiss publishing house, with his enthusiasm. The media firm bought Lykke coins, or LKKs, and holds them in a so-called mobile wallet, according to the crypto firm's founder.
«It was as though they scrubbed the whole firm with a toothbrush – that's how closely they looked,» Olsen said of the due diligence done by the acquirer before the deal. «That's a good exercise for us in professionalizing ourselves.»
Anything is Tradable
LKK is a security token, which means the bearer has the right to stock which is traded in token form. Nevertheless, it is unconventional for a traditional firm to directly invest in a crypto provider.
In addition, Lykke has limited its ability to raise funds – security tokens cannot be sold in many countries. Instead, providers frequently issue utility tokens, which fall into a regulatory gray area. Their legality is dependent on whether they can be used to purchase a product or a service.
Global Electronic Trading Platform
With its purchase of an undisclosed amount of LKKs, Tamedia hasn't just taken another fintech stake. Olsen wants to build a «global electronic trading platform,» where «anything for everything» can change hands.
He has no preference regarding the underlying technology: «We're like Java, which is agnostic to hardware,» Olsen compared. «We have to be like that, too. Simply agnostic to blockchain.» His goal isn't to replace ethereum or the tezzie.
Regulatory Blessing
Instead, financial engineering should become Lykke's distinguishing characteristic. Olsen dreams of algorithm-supported cryptocurrency derivatives, which will help guarantee the platform's liquidity.
Lykke has already applied to Swiss regulator Finma for the securities dealing license it needs to realize its plans, as well as comparable regulatory proceedings in Europe. While Olsen was coy on the timing of licenses coming through, the Lykke CEO said the signals are «extremely positive».
Undermining Investment Banks
«They are open for true financial market innovation,» Olsen said of Switzerland's finance regulator. «We didn't just apply for a securities dealer license, we also discussed topics which are important afterwards in order to design the new market in an optimal way.»
Once Lykke has clinched its license, the company wants to start undermining investment banks. «We have no ticket costs,» Olsen said. Thus, the company can carry out major transactions down to ones worth just a few dollars. The company plans to generate revenue by selling financial products which benefit from the liquidity of the free trading.
Open Doors Abroad
Lykke is still taking money from local investors. In order to expand internationally, Olsen wants to bring larger, foreign investors on board to open doors abroad.
