Exciting news! Episode 136 of the Public Key podcast has dropped, featuring a crucial discussion on how crypto accounting firms can effectively manage back office operations. The pressing question remains: how can these firms handle such operations without possessing comprehensive visibility over all assets? The definitive answer is they cannot. This week’s episode showcases an innovative solution presented by Tal Zackon, the visionary CEO and Co-founder of TRES Finance. Tal may just have cracked the code on this predicament, transforming the landscape of data management for digital assets. TRES Finance promises to deliver a complete 100% coverage across numerous blockchains and plans to extend this capability to traditional financial assets such as derivatives and bonds in the near future.
Public Key Episode 136: The Crypto Treasury Solution: Navigating Financial Data Complexity
“We don’t identify as just a compliance, audit, or accounting company. Our primary identity is that of a data company. Without a comprehensive 100% view coverage of your assets, analyzing data for back office operations is fundamentally impossible,” emphasizes Tal Zackon.
In this enlightening episode, Ian Andrews, the CMO of Chainalysis, engages in a deep conversation with Tal Zackon. They delve into the intricate world of treasury management, accounting, and back office operations within the crypto space, revealing the significant challenges involved.
Tal elucidates how TRES Finance is setting new industry standards in data management for digital assets, guaranteeing absolute coverage across a vast number of blockchains. They are ambitiously exploring ways to extend their services to encompass traditional financial assets, including derivatives and bonds.
Moreover, he discusses their pioneering Proof of Funds feature, designed to enhance transparency across crypto exchanges. The strategic implementation of AI not only streamlines operations but also strengthens their collaborations with major industry players like Fireblocks. Additionally, Tal elaborates on how they are adeptly navigating an evolving regulatory landscape.
Quote of the episode
“We fundamentally view TRES Finance not merely as a compliance company but as a data company first. Analyzing data for back office operations requires a complete 100% view coverage of all your assets, maintained to a high integrity level,” – Tal Zackon (CEO & Co-founder, TRES Finance)
Minute-by-minute episode breakdown
2 | Tal discusses his transition from a venture capitalist to conquering the realms of crypto and NFTs.
7 | Insights on strategic fundraising during periods of uncertainty in the crypto market.
13 | Strategies for overcoming data challenges inherent to blockchain technology.
18 | Collaborating with Fireblocks to enable seamless financial data integration for their clients.
24 | How TRES Finance is setting a new benchmark of transparency in the crypto exchange space with their Proof of Funds solution.
29 | Navigating through complex regulatory compliance challenges in digital asset accounting.
34 | Exploring future innovative solutions for enhancing digital asset accounting and compliance.
Related resources
Explore additional resources shared by Chainalysis that perfectly complement the insights gained from this captivating Public Key episode.
Speakers on today’s episode
- Ian Andrews *Host* (Chief Marketing Officer, Chainalysis)
- Tal Zackon (CEO & Co-founder, TRES Finance)
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Transcript
Ian:
Hello everyone, and welcome to another enlightening episode of Public Key. I am your host, Ian Andrews. Today, we have the privilege of hosting Tal Zackon, the Co-Founder and CEO of the dynamic finance firm, TRES Finance. Tal, it’s a pleasure to have you on the show.
Tal:
Thank you! I appreciate being here.
Ian:
TRES Finance seems to be at the forefront of discussions in the crypto space. For our audience who might not be familiar with TRES yet, could you provide a brief overview of what your company embodies?
Tal:
Absolutely. We provide firms that engage with digital assets the tools needed for comprehensive financial data management. Our range of services includes accounting, reconciliation, auditing, and financial operations. Importantly, our services extend to new offerings like proof of funds and compliance for staking data. Companies engaging with digital assets will eventually need to align their financial reporting with both regulatory and internal requirements.
At first glance, managing this data appears simple because everything is on the blockchain. However, the complexity increases with factors such as multi-chain operations, on-chain and off-chain transactions, and diverse custody solutions, turning it into a significant data problem that we are equipped to solve.
Ian:
It’s indeed a complex problem. Here at Chainalysis, we specialize in bringing clarity to anonymous transactions. It seems you’re pursuing a similar path, although focusing specifically on accounting and audits. I’d love to hear more about your journey into the crypto space.
Tal:
Great question! My first encounter with digital assets occurred around 2017 when a fellow student prompted me to buy Bitcoin. Initially, I hesitated because I wasn’t financially investing at the time. I managed to find a way and pursued my interest in crypto.
Upon returning from that experience, I joined a venture capital firm. I became engrossed in blockchain technologies after being introduced to a startup focused on it, and I found myself captivated by the industry. Initially, we weren’t investing in crypto because the venture capital community was skeptical. However, as the sector began to evolve, particularly during the rise of Web3 and the NFT boom in 2020 and 2021, I knew it was time to immerse myself fully.
As I ventured into trading and exploring NFTs, the next logical step was to ensure that we were building a financial solution that resonated with the needs of cryptocurrency businesses.
Ian:
What was your first significant step in establishing TRES Finance?
Tal:
Our first step was understanding the needs of the market. As I was examining how startups handled data acquisition in crypto, I identified frequent problems such as inadequate data management with various exchanges. This was particularly important because investors began questioning the sustainability and transparency of these operations.
We initiated a partnership with a seed investor who believed in our vision and proposed to connect us with potential customers. This immediate feedback loop was crucial as we built our platform.
Ian:
That’s a powerful strategy. How did raising funds impact your growth, particularly given the timing around the market downturn?
Tal:
Having a solid investment round at that moment was essential, as it set the groundwork for our operations. Once the market experienced a downturn, we saw an increased demand for our services, particularly from firms needing comprehensive financial management for compliance and auditing during that chaotic period.
At that time of uncertainty, it became evident that businesses required robust infrastructure and technology to optimize their financial records effectively.
Ian:
What distinguishes TRES Finance in terms of its technological capabilities?
Tal:
Our main differentiator lies in our data-driven approach. Rather than merely focusing on applications for traditional accounting or audits, we see ourselves primarily as a data company. Our goal is to ensure clients can access complete visibility over their assets, ensuring accurate financial operations and compliance.
Our success has been rooted in building a sophisticated data architecture that allows us to integrate seamlessly with diverse blockchain ecosystems and quickly adapt to emerging technologies and new compliance requirements.
Ian:
Tell us about your collaboration with Fireblocks.
Tal:
Our partnership with Fireblocks has been transformative. As a leading player in secure digital asset management, their collaboration has opened up new distribution channels for our services. By effectively addressing gaps in their offerings, we’re able to deliver enhanced data solutions while reinforcing the security framework of their platform.
This collaborative approach enhances both our service capabilities while also enabling deeper connections with clients.
Ian:
Lastly, can you speak about the innovative Proof of Funds feature you’ve developed?
Tal:
Proof of Funds is addressing critical gaps in the current landscape created by current market practices. While traditional proof of reserves reflected assets held, we believe it’s equally important to identify ownership and manage clear accountability over these assets. So, our product reconciles on-chain data with internal control systems to provide reliable oversight.
It’s a new perspective on validating asset existence, and we are excited to educate the market on its importance.
Ian:
Thank you, Tal, for sharing your insights and expertise. It’s exciting to see how TRES Finance is driving innovation in the crypto space!
Tal:
Thank you, Ian! It’s been a pleasure discussing our vision and journey.
Mprehensive, accurate data across various assets, which is critical for making informed financial decisions. By employing advanced data analytics and machine learning techniques, we can help businesses integrate their financial operations with ease and clarity, regardless of the complexity involved in the blockchain ecosystem.
Ian:
That sounds incredibly beneficial, especially as companies deal with increasing amounts of data from multiple sources. Can you elaborate on your partnership with Fireblocks and how it contributes to your mission?
Tal:
Absolutely! Collaborating with Fireblocks has allowed us to streamline the integration of financial data for clients. Their security protocols are top-notch, ensuring that as clients manage their digital assets, they can also maintain necessary financial safeguards. This partnership helps in building trust among our users, as they know their data is secure while we provide them the tools for better data management and transparency.
Ian:
Transparency has become a hot topic in the crypto industry, especially with the incidents in recent years. How does your Proof of Funds solution play a role in promoting transparency?
Tal:
Our Proof of Funds solution is designed to build trust among users on exchanges. It allows them to verify their assets without having to reveal all sensitive information, thereby maintaining their privacy while ensuring transparency in the ecosystem. This feature is essential for helping to restore confidence in digital asset markets, especially after significant events that have shaken investor trust.
Ian:
It’s exciting to see how innovation can respond to past challenges. As we move forward, what other innovative solutions is TRES Finance exploring in the realm of digital asset accounting and compliance?
Tal:
We’re continuously exploring ways to enhance our platform by integrating AI-driven insights and improving automation in reporting and compliance processes. Our aim is to simplify the interface for users while providing robust back-end support that can seamlessly handle traditional financial assets alongside digital ones. This enables our clients to maintain a holistic view of their finances, which is increasingly vital as more traditional assets enter the digital sphere.
Ian:
This has been a fantastic conversation, Tal. Thank you for sharing your insights into TRES Finance and the evolving landscape of crypto and financial data management.
Tal:
Thank you for having me, Ian! I appreciate the opportunity to discuss these important topics with you.
Ian:
And thank you to our listeners for tuning into another episode of Public Key. Be sure to check out more resources from Chainalysis to further explore these critical issues in the crypto world. Until next time!