Aplo Case Study - Deutsche Digital Assets
Deutsche Digital Assets (DDA) had an OTC setup before joining Aplo, but it no longer suited them due to high spreads on altcoin trades, a lack of transparency, and the need for a complex governance structure. Aplo provided a comprehensive solution that included aggregated liquidity, efficient algorithms, monthly rebalancing, transparent reporting, a complex governance structure, and excellent customer service. As a result, DDA experienced a 50% reduction in price slippage and a 70% reduction in operational overheads.
The Story Of Deutsche Digital Assets
Deutsche Digital Assets (DDA) is a Frankfurt-based Crypto Native Asset Manager, which was founded in 2017under the name “Iconic Holding” by Patrick Lowry, Maximilian Lautenschlaeger & Lukasz Musialski.
DDA began as a crypto-focused venture capital firm, gradually evolving into a fully-fledged asset management group with regulated index funds, ETP’s and quantitative strategies for crypto assets in the EU. DDA is currently actively seeking a German asset manager license in order to add advisory and portfolio management for financial instruments to its wide product suite. The process is subject to approval with the German regulator BaFin and would best enable DDA to focus on scaling up its core asset management business in Europe.
The Challenge Faced By DDA
Prior to becoming an Aplo customer in January 2022, DDA faced a number of issues that their current OTC desk setup could not solve. First, they were paying a significant premium on altcoins trades, because of high spreads on execution. Second, the lack of transparency and reporting capabilities was also a major issue, particularly for a regulated asset manager like DDA. Finally, the need for a complex governance structure with multiple levels of validation would have been difficult to achieve with the OTC desk's workflow.
Aplo was able to address all of these concerns and provide a comprehensive solution that met their needs.
Why DDA Chose Aplo
DDA was introduced to Aplo through a mutual acquaintance of Aplo's CEO. Aplo was able to provide a comprehensive solution for DDA's needs, including:
- An aggregated source of liquidity with efficient algorithms (VWAP, TWAP, inline...)
- A tool to facilitate monthly rebalancing
- Transparent reporting, with read-only access for fund admins and auditors
- The ability to set up a complex governance structure with multiple validation layers (on orders' placements, address whitelisting and withdrawal initiation)
- A reliable and responsive support team, which can be crucial when working with complex financial technologies
Being regulated in France was also one of the key decision factors. Aplo is a versatile platform under a strong EU regulatory umbrella that can support a range of functions for different types of customers.
The Results
Using Aplo has been a valuable solution for DDA, helping them to reduce price slippage by 50% and operations overheads by 70%.
The fact that the business relationship has strengthened over time proves that Aplo has been responsive to DDA's needs and has delivered on its promises. The transparency and automation provided by Aplo, as well as the willingness to incorporate customer feedback, were key factors in this success. It's worth noting that the fact that DDA responded "nothing" when asked what they were missing to achieve success proves that Aplo has been meeting all of DDA's needs and has become an integral part of the business.
To experience the success that Aplo brought to DDA, please feel free to connect with our sales team at contact@aplo.io.
