The Zodiac Family Office is run by a family of financially sophisticated entrepreneurs and forward-thinking tech investors. The family office wanted to add liquid Digital Assets to its portfolio mix without building out extensive internal infrastructure. The client’s ambition was to:
- Allocate towards and manage a professional portfolio of direct crypto holdings in a safe and regulated manner
- Invest / stake assets in various DeFi platforms to generate attractive yields
- Dynamically adjust exposure and asset allocation
- Have a consistent overview of portfolios, DeFi markets, risks and generate regular reports including compliant tax reports at the end of the year
The Family Office is managed by investment professionals well versed in crypto-related matters. However, finding an efficient combination of sophisticated investment tools and offerings that would fulfill institutional-level criteria proved to be a challenge. Especially when considering the high maintenance and slow adaptability of best-of-breed approaches.
The key challenges faced by Zodiac / Kupke:
- Given the sophistication and experience of the family, they needed a solution that matches the professional standards they are used to from non-digital assets investment management processes.
- The infrastructure and technology required to dynamically manage crypto portfolios are vast. They require the interaction with multiple components and counterparties which would have to be centrally managed by the Family Office.
- Investing in various Digital Assets across DeFi protocols requires knowing the options available based on each asset and then deploying them through various platforms as well as managing exposuresand yield claims.
- Finally, producing compliant crypto tax reports would require additional tools.
The client was looking for a comprehensive platform with the infrastructure that would give them the required flexibility to add crypto to their asset mix, but also ensure they are doing so in the safest and most robust way possible. The solution should provide the ability to onboard existing crypto holdings and allow new fiat to be allocated over time. Finally, the solution should enable them to navigate the DeFi space in an intuitive way to minimize operational risk but also provide the flexibility required to benefit from the most attractive market opportunities.
After conducting extensive provider research, the client turned to Alloy to power their Digital Asset operations. Alloy enables Zodiac to operate out of a safe, regulated and transparent platform covering every aspect of their Digital Asset investment process. The result highlighted various crucial benefits of using Alloy:
- Enabling a seamless allocation towards Digital Assets in line with their existing processes.
- With Alloy’s proprietary Strategy Builder, constructing and maintaining cross-protocol strategies is intuitive and effortless.
- Clients can have full transparency on their accounts and their on-chain transactions.
- Data can be automatically pulled from Alloy and fed into the Family Office’s wealth management and client reporting solution to ensure a coherent portfolio view across asset classes.
- Worldwide locally compliant tax reports can be produced at the push of a button and ensure compliant crypto reports at any time.