The DeFi Download

Kinto: Is a KYC L2 the way that institutional capital gets brought on chain?

February 16, 2024 Radix DLT
The DeFi Download
Kinto: Is a KYC L2 the way that institutional capital gets brought on chain?
Show Notes

In this episode of the DeFi Download, Piers Ridyard speaks with Ramon Recuero, Co-Founder and CEO of Mamori Labs, which is developing Kinto. Tune in to learn how Kinto bridges TradFi to DeFi and paves the way for institutional adoption by introducing the first Layer 2 solution with chain-level KYC and addressing concerns about scams, hacks, and traditional financial institutions' perception of cryptocurrency as the "Wild West. 

Summary

Join Piers Ridyard and Ramon Recuero as they explore the inner workings of Kinto, a groundbreaking platform that seeks to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi). Kinto's innovative approach addresses the longstanding issue of security in the crypto space by introducing the first Layer 2 (L2) solution with KYC at the chain level, revolutionizing user protection and trust within the ecosystem. Kinto's native account abstraction enhances security by requiring users to utilize account-abstracted wallets, preventing common scams seen on other chains.

Ramon recounts his journey from the gaming industry to crypto and from the traditional finance sector to the realm of DeFi, fuelled by the realization of the disruptive potential of crypto. From his involvement in ventures like OpenSea, to founding Babylon Finance and recently Mamori Labs and Kinto, Ramon's experiences underscore the critical need for trust, security, and regulatory compliance in the crypto space.

Discover why Kinto is gaining traction among major financial institutions like Franklin Templeton and BlackRock, indicating a significant shift towards institutional adoption. With a focus on crypto-native RWA protocols and diverse capital inflows from traditional funds like Skybridge and networks like Solana, Kinto is poised to revolutionize the DeFi landscape, catering to both seasoned investors and newcomers with enhanced asset accessibility and streamlined user experiences. 

Key takeaways

  • Systemic Insurance Integration: Learn how Kinto integrates insurance directly into its system to address vulnerabilities highlighted by past hacks.
  • Revolutionary KYC Approach: Explore Kinto's innovative permissionless KYC system.
  • Chain-Level KYC Enhances Composability: Understand how implementing KYC at the chain level simplifies composability.
  • Increased Institutional Confidence: Discover why institutions find it more secure to deploy capital within a chain-level-KYC Layer 2 like Kinto.

Chapters

  • 00:00 — Introduction to Ramon Recuero
  • 01:06 — Ramon's journey to creating Kinto
  • 07:17 — From game developer to crypto enthusiast
  • 09:31 — Why Ramon built Babylon Finance
  • 12:47 — Kinto's systemic insurance
  • 17:48 — Revolutionary Ethereum L2 with on-chain KYC
  • 20:42 — Why KYC at the chain level
  • 22:28 — Kinto's strategy for institutional adoption
  • 23:51 — Addressing regulatory issues & RWA Liquidity 
  • 24:57 — Kinto's advantages over existing providers
  • 26:16 — Kinto's capital inflow source
  • 27:47 — Natively-built account abstraction
  • 28:58 — Institutional adoption possibilities
  • 30:22 — Kinto's KYC: Threat to digital commons?
  • 34:19 — Dealing with KYC & AML complexities
  • 38:20 — Counterparty guarantees in tokenized assets
  • 40:12 — Kinto's NFT and proof interoperability
  • 41:28 — Kinto's unique edge
  • 42:57 — How to get involved with Kinto

Further resources