YouHodler CEO Sees Future in Blockchain, Traditional Finance Integration

Ilya Volkov, CEO and co-founder of YouHodler, a Swiss and EU-based Crypto FinTech company, shared his vision for the future of blockchain and crypto’s role in traditional financial systems during an interview at the Web3 Banking Symposium in Lugano. Volkov emphasized the importance of a lean, self-sustaining approach in building YouHodler, focusing on efficiency and customer satisfaction. He highlighted the contrast between YouHodler’s approach and that of many companies that raised large sums through ICOs, often misusing funds on marketing rather than product development.

Volkov discussed the challenges of integrating decentralized finance (DeFi) with legacy banking structures, noting that many companies that raised significant funds were not focused on product development. He also mentioned the benefits of having external support, such as access to real expertise from top-tier VCs, but cautioned about the potential loss of freedom. YouHodler, now more than scaled up, is open to working with smart, strategic investors while maintaining its focus on product quality and customer value.

YouHodler’s strategic focus includes investments in trading, payments, and stores of value. The company lists all valuable coins and tokens for buying, selling, lending/borrowing, and trading, with a market department that keeps up with market trends. Volkov mentioned the recent addition of the TRUMP coin, which was released within 24 hours of the announcement, highlighting the company’s agility and responsiveness to market demands. YouHodler also plans to add traditional assets to its platform in the mid-term future through partnerships with other financial institutions.

In the payments sector, YouHodler invests heavily in wallet and payment infrastructure, allowing users to open dedicated bank accounts, link cards, and easily top up and withdraw funds. The company is also developing its own branded card to simplify the user experience further. Additionally, YouHodler is investing in new features, such as the Universal Money Address (UMA) network built on Lightspark, which allows for simple, human-readable addresses connected to any form of money, enabling instant cross-border payments.

Volkov also discussed the role of Ripple in cross-border payments, noting that while Ripple aimed to challenge SWIFT, it has not yet succeeded. He emphasized the importance of partnerships and collaboration in the industry, mentioning that three years ago, the idea of connecting banks and crypto companies was considered crazy. However, it is now becoming a reality, with traditional institutions actively working in the crypto space.

Regarding the integration of Web3 anonymity with traditional financial regulations, Volkov noted that KYC and AML practices are not a problem for common people with good UI solutions. However, bad actors pose a challenge, and the complexity of KYC must be balanced with the value of protection from fraud. Volkov also discussed the importance of self-custody, noting that while some users prefer to manage their own keys, others rely on trustworthy service providers. YouHodler is integrating Web3 connectors and wallet connects to cater to both groups of users.

Volkov highlighted the increasing complexity of regulations in the crypto industry, noting that different regions are trying to find their place and compete with each other. He mentioned the example of the US, which initially had a restrictive environment but is now trying to deregulate the industry to support its importance. In contrast, the European Union is taking a heavy approach to regulation with MiCA. Volkov emphasized the importance of staying compliant with all regulations and investing in compliance efforts.

Volkov also discussed the future of crypto and traditional finance, noting that traditional banks are actively working in the crypto space to cater to both wealthy traditional customers and young, adventurous customers. He emphasized the importance of partnerships and collaboration between FinTech companies and traditional institutions, noting that companies like YouHodler are always working on pushing the boundaries and creating new opportunities.