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Formidium is looking to simplify crypto accounting for businesses and investors
May 17, 2024
The integration of cryptocurrencies into both personal and corporate financial systems is no longer a distant future but a pressing reality. In a recent discussion, Roundtable anchor Rob Nelson, alongside Shalin Madan, the co-founder and CGO at Formidium, and John Manley, Formidium’s chief marketing officer, explored how Formidium is addressing the complexities of crypto accounting and adoption.
Nelson began by emphasizing the growing recognition of cryptocurrency's role in diversified portfolios.
"A whole lot of people are realizing it makes sense to own a small percentage of your risk portfolio in some form of alternate cryptocurrency," he stated. This shift in perspective necessitates a seamless integration of digital assets into traditional financial systems.
Madan responded by introducing Formidium’s cutting-edge solution.
"Ironic, you mentioned the word 'seamless' because that is the name of our accounting system," Madan said.
This in-house developed system, tested across the institutional spectrum, facilitates the integration of digital assets granting access to the Web3 community.
Nelson then delved into the application of cryptocurrencies in business transactions.
"In the U.S., we don't have a ton of businesses taking cryptocurrency payments. Other countries will see more of that," he said.
Madan explained that Formidium’s accounting solutions are designed for both investment and corporate settings.
"A general ledger accounting system works in both an investment setting and a corporate setting," he noted, highlighting the versatility of the platform.
Manley expanded on this with insights into Formidium’s new tool, Finalytic, which enables stablecoin payments.
"We practice what we preach," Manley said. "We've actually just exceeded the million-dollar threshold in accepting stablecoin payments."
This tool streamlines transactions, offering a faster and more accountable alternative to traditional payment methods, showcasing the practical benefits of cryptocurrency as a currency.
Madan emphasized Formidium's pioneering role in the adoption of stablecoins.
"We are the quintessential example of a company that's accepting crypto," he asserted.
By addressing key pain points associated with crypto transactions, Formidium is driving the acceptance and utilization of digital currencies in everyday business operations.
Nelson highlighted the challenges that come with this innovation, mentioning a recent Deutsche Bank study that raised concerns about the stability of many stablecoins.
"Stablecoins are getting put under scrutiny," he noted, referencing issues with high-profile stablecoins like Tether and Terra Luna. This underscores the importance of reliable and robust crypto solutions.
The discussion wrapped up with a focus on the future of crypto payments.
"Crypto payments are faster and way more accountable, but we know there's a lot of adoption issues that are tied to the speed of processes," Nelson said.
Matching the efficiency of traditional financial systems remains a significant hurdle for broader cryptocurrency adoption.