Darius Site of QCP Capital, sponsor of the cryptographic trade industry in S’pore – Health Guild News

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People who don’t belong in the cryptocurrency and blockchain industry would find Darius Sit as an unknown face. However, within cryptographic circles, the 33-year-old is seen as the godfather of the cryptographic trade in Singapore.

Your company, QCP Capital, which was founded in 2017, is now one of the world’s largest cryptocurrency trading companies with deployed assets of more than US $ 1.5 billion.

In addition, QCP, through its QSN risk arm, is an early investor in many blockchain companies such as Axie Infinity, FTX, Synthetix, AAVE (ETHLend), YFI, Deribit, Avalanche, DYDX, Algorand, Tokocrypto and Nansen AI – all this has become world powers in the cryptographic industry.

The impressive part is the fact that the local company has achieved all this only with its initial start-up capital and without any external funding.

He graduated in business from the National University of Singapore and began a different career path than most of his colleagues. It is common for finance graduates to begin their careers at a bank to learn the ropes before going to a hedge fund, but Darius immediately started at Dymon Asia, one of the largest hedge funds of the time.

“It was extremely important to start with Dymon Asia. At a bank, I would have tied myself to a specific bargaining counter and made myself specialize, ”Darius told Vulcan Post, which recounted the early days of his career.

“While at Dymon, I had the opportunity to learn everything in general. I was at the execution desk and also managed a book, traded from currencies (FX), commodities, to interest rates and equities, and had very good training in terms of breadth of skills and exposure to different classes of financial assets. “.

Eventually, he left Dymon to join the international banking group BNP Paribas, which saw him move to New York to manage the FX Asia group. At the bank, Darius had more time at his disposal and that was when he came across cryptocurrencies and started trading them.

“My first foray into cryptography was the arbitrage trade. We were making 30 to 60 percent decent sized trees and I was making a lot more money than my actual job. So, in 2017, I decided to return to Singapore to start QCP Capital, ”he shared.

How QCP Capital started

Darius Sit, co-founder of QCP Capital / Image Credit: Darius Sit

QCP Capital started as a two-man trading store, where they trade cryptocurrencies with their own money instead of customers ’money. That way, they can get all the profits from their trade instead of just a commission to the customers.

As QCP Capital accumulated its asset base, the company quickly evolved into an over-the-counter (OTC) store, where it helped individuals with high net worth to trade cryptocurrencies.

QCP was the first local player to do OTC business in 2017 doing OTC business focusing on people with high net worth and we started participating in creating markets for projects and exchanges. We also started to specialize in Asia and manufacturing crypto spot markets in Singapore Dollars, Malaysian Ringgit, Indonesian Rupiah, Thai Baht and more.

– Darius Sit, founder of QCP Capital

What this meant was that traders would come directly to QCP Capital to exchange their real world currencies into cryptocurrencies.

QCP Capital’s specialization in Asia also meant they had deep connections and partnerships with exchanges across Asia. They are also one of the owners of Tokocrypto, Indonesia’s largest cryptocurrency exchange founded by Singapore partner Pang Xue Kai.

As spot trading became more competitive with the presence of more players in the space, Darius began to look for opportunities in other markets.

I am a derivatives trader, so when I looked at the business and thought about the future, I saw that no one was trading derivatives such as options and so on, as it was a very small part of the market. We decided to focus on this opportunity, because there was a significant need for options in the cryptographic space and the market would grow exponentially.

– Darius Sit, founder of QCP Capital

This decision proved to be the turning point in the growth of QCP Capital. Advanced to date, QCP Capital manages a US $ 2 billion book and is one of the world’s leading cryptocurrency trading companies.

“We are leaders of the market in this segment. People come to us for large sizes and we also offer prices on options and exotic altcoin. I am very proud of that: to be a Singapore company that has become a world leader in the space of cryptographic derivatives, ”Darius added.

“More recently, we have also been dominant in decentralized financing (DeFi) options. We provide most of the liquidity of all DeFi options and I think there is also a great future. ”

Paving the way for S’pore to become a cryptography center

While many companies focus on boosting their business agenda and profits, few actively drive the industry.

In 2019, Darius worked with Leng Hoe Lon, Simon Nursey and a few others, to launch a global crypto industry initiative called Crypto OTC Roundtable Asia (CORA). This was an attempt to bring together all the world’s institutional cryptographic players to discuss and reach an understanding. how cryptographic settlements can be made.

Crypto OTC Asia Round Table
Image credit: CORA

This is important because in traditional banking there are known liquidation mechanisms. For example, transactions are settled in a T + 2 time period for FX, but there is no such common standard for cryptography.

We brought together all the major players in the OTC space, such as Alameda (FTX), Galaxy, Genesis, DRW Cumberland, Three Arrows and OSL, and tried to establish some trading settlement guidelines. There were also subsequent meetings and CORA became a meeting point for the “institutional cryptographic industry”.

I am very proud because it was an effort led by Singapore and Singapore is now the leading cryptocurrency trading center in the world, where literally every trading store is established here.

– Darius Sit, founder of QCP Capital

MAS is on track to help regulate cryptography

For Singapore cryptography companies, most are familiar with the Payment Services Act (PSA) which regulates the cryptographic industry here.

Image credit: Sygna Bridge

Although the law was established in 2019, only a few licenses to operate legally in Singapore have recently been approved, which is why the Singapore Monetary Authority (MAS) has taken so long to develop an appropriate framework for which concerns the regulation of cryptocurrencies.

Commenting on MAS ’regulatory effort, Darius only had good things to say.

I think MAS knows exactly what they are doing and are doing a very good job contrary to what other people believe.

What people don’t really know is that Singapore has become the world capital of wealth cryptography. There is actually a large volume of cryptography flowing through Singapore. MAS has done so by balancing clarity and time, because the fact is that no one has a silver bullet for the regulation of cryptography; therefore, what MAS has successfully done is to provide clear guidance as the regulatory landscape develops.

– Darius Sit, founder of QCP Capital

Darius went on to make a comparison between regulation here in Singapore and Hong Kong: the key difference between the two is that MAS has been “providing clarity”.

“MAS has set guidelines on what you can do or not do, and in that sense, Singapore has the clearest regulation in the world, compared to Hong Kong, where they adopt a ‘opt in’ type of regulation. The results are very revealing. “All the major crypto players are meeting here in Singapore,” he said.

MAS’s effort to ensure that Singapore remains cryptocurrency has also generated great interest from Singapore’s local banks.

According to Darius, the banks have become kinder in recent years and the tone of the conversation is changing rapidly. Now, banks are approaching QCP Capital to see if they can partner to get liquidity or even to understand how things are running.

Building “Goldman Sachs” of the cryptographic industry

For Darius, QCP Capital has just started. What started as a two-man trade shop in Singapore has become a strong 70’s team.

Darius has also launched an asset management company called Phillip Street Partners, which houses the PSP Soteria Ventures (PSV) business arm.

Philip Street Partners: Willy Ballmann, Darius Sit, IZ Wong, Bobby Hiranandani

PSV invests in other cryptography and blockchain companies. Below are some of the most outstanding companies of which PSV has managed to be part:

  1. Axie Infinity: the highest-grossing NFT game with revenue of more than $ 1.2 billion this year
  2. FTX: the world’s top five cryptocurrency exchanges with more than US $ 7.5 billion in daily trading volume
  3. Synthetix: the largest derivative liquidity protocol in the world
  4. AAVE (ETHLend): the world’s largest decentralized financing protocol that allows people to lend and lend cryptography
  5. YFI: agricultural performance automation tool
  6. Derivative: exchange of options and most important bitcoin futures in the world
  7. Avalanche: new layer of blockchain that competes with the Ethereum network
  8. DYDX: the largest perpetual contract operator in the world
  9. Tokocrypto: the first two local cryptocurrency exchanges in Indonesia
  10. Nansen AI: The most important blockchain data analysis platform in the world
  11. Algorand: blockchain infrastructure

Ultimately, Darius envisions QCP Capital becoming a digital investment bank or Goldman Sachs in the crypto industry. While there are many skeptics, Darius sees many opportunities in space.

“As cryptography becomes more and more popular, we want them to know us as Singapore’s own brand for investments in cryptography,” Darius shared.


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Featured Image Credit: Darius Sit / QCP Capital





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