www.efinancialcareers.com Open in urlscan Pro
2600:9000:2156:1400:19:b8d1:c000:93a1  Public Scan

URL: https://www.efinancialcareers.com/news/2022/06/cloudwall-capital?utm_campaign=CL_GLOBAL_CLIENT_NEWSLETTER&utm_source=AMS_US_ENG&ut...
Submission: On June 08 via api from CH — Scanned from DE

Form analysis 3 forms found in the DOM

POST https://email-verification.efinancialcareers.com/v1/newsletters/subscription

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    <p class="font-headline newsletter-content">Get the latest career advice and insight from eFinancialCareers straight to your inbox</p>
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EX-MORGAN STANLEY MD'S CRYPTO MILLIONS SHOW IT'S NOT OVER

by Sarah Butcher 7 days ago


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Kyle Downey has had a busy year. After 17 years at Morgan Stanley, where he was
latterly in the automated risk trading department, he quit last October to found
Cloudwall Capital, a digital assets/crypto risk management platform for
institutional clients. He's since made a raft of ex-banking hires and has just
raised $6.3m in seed funding to develop the platform. 

"We are plowing the full amount into R&D headcount, quants and developers," says
Downey. Many of those hires have been made already, however. By the end of
August, Cloudwall will have 15 employees, including Singapore-based CTO Makas
Tzvaellas (ex-OCBC and Morgan Stanley) and its most recent addition, Kevin
Givens, a former quant researcher from Bank of America. 



"The majority of the hiring we did was people coming out of traditional finance
firms," says Downey. "We're building an institutional product to support
investment in Web 3. What we care about is knowledge of quant finance and risk
systems, and you get that in traditional finance."

Following Tether's collapse and the 29% drop in Bitcoin vs. the US$ since March,
it might be presumed that Downey's former banking colleagues are less interested
in moving into the crypto space than before, but he says this isn't so. Senior
people who want to move into crypto still come to him, and tradfi people
regularly enquire about making a move. If interest in working in the space has
cooled off, Downey says it's too early to tell. 

He sides with Julius Baer CEO Philipp Rickenbacher, who said last week that the
latest crypto crash could transform the sector in much the same way as the
bursting of the dot com bubble transformed the technology sector 20 years ago.
"The wreckage of the dotcom boom fed Web 2 - a lot of people scooped up cheap
equipment that enabled the next phase." The current "crypto winter" is different
to its predecessor in 2018, Downey adds: "Then everyone was like, 'Is it really
going to come back?' This time, they're saying that it definitely will." 

Downey says the longevity of the crypto sector is illustrated by last week's
announcement that VC firm Andreessen Horowitz is launching a $4.5bn crypto fund.
Today, Fidelity said it plans to add 110 technology workers (including engineers
and developers with blockchain expertise) by the end of the year as it branches
out beyond beyond bitcoin. 

"The market will mature, you will see growing institutional adoption and
eventually I really do believe that crypto will take over big chunks of
traditional finance," predicts Downey.

This enthusiasm helps explain why ex-bank professionals have been joining
Cloudwall. It probably helps too that the firm offers an employee stock option
plan that could become quite lucrative as it grows. 

Click here to create a profile on eFinancialCareers. Make yourself visible to
recruiters hiring for top jobs in technology and finance. 

Have a confidential story, tip, or comment you’d like to share?
Contact: sbutcher@efinancialcareers.com in the first instance.
Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)

Bear with us if you leave a comment at the bottom of this article: all our
comments are moderated by human beings. Sometimes these humans might be asleep,
or away from their desks, so it may take a while for your comment to appear.
Eventually it will – unless it’s offensive or libelous (in which case it won’t.)


Follow @MadameButcher



RELATED ARTICLES

 * WHAT IT'S REALLY LIKE TO WORK IN CRYPTO MARKET MAKING



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