Market Maker Flowdesk Doubled Down on the U.S. as Things Looked Bleak. Now That Bet Is Paying Off

As a seasoned crypto investor and observer of the industry, I have learned that taking calculated risks and making contrarian bets is key to success in this volatile market. A year ago, when most were hunkering down during the crypto winter, Flowdesk, led by its courageous CEO Guilhem Chaumont, made a bold move to expand their U.S. presence.

Guilhem Chaumont, the CEO of market maker Flowdesk, remains steadfast in his beliefs and is willing to go against the prevailing viewpoint.

In 2023, just prior to the SEC’s aggressive legal actions against Binance and several protocols, Chaumont announced his intentions to expand the Paris-based market maker’s New York office. He acknowledged that navigating the complexities of the U.S. regulatory environment was a significant challenge but believed the potential rewards of engaging with its advanced capital markets were commensurate with the effort.

During that period, going against the prevailing narrative was an unconventional choice. A few months prior, CoinDesk published an op-ed expressing concerns that U.S. government efforts to stifle cryptocurrency didn’t appear far-fetched. The op-ed posited that regulatory crackdowns and unwillingness to establish clear guidelines were deliberate attempts to hinder industry growth.

“Chaumont expressed this week that our company’s core beliefs have remained constant. We harbor strong convictions regarding market trends. In the realm of cryptocurrency, taking opposing positions and identifying hidden opportunities is essential for growth. Short-term economic shifts seldom sway us. Consequently, we continue to be ardent advocates for the U.S.’s role in crypto innovation due to its reputation as a hotbed for groundbreaking ideas and an expansive market.”

After Chaumont’s remarks at Consensus 2023, the price of bitcoin has surged approximately 150% based on CoinDesk Indices figures. Moreover, the regulatory landscape in the U.S. has become more favorable, with the SEC giving the green light to bitcoin ETFs and reportedly preparing to approve ether ETFs as well.

First mover advantage

In 2023, as the U.S. job market appeared discouraging, Flowdesk managed to increase its workforce. This proactive hiring strategy gave Flowdesk a competitive edge once the market recovered.

As a crypto investor, I’m thrilled to share that our company is currently seizing sizeable market shares, and our business conditions have never been stronger. We’re profitable now, with volumes and revenues experiencing substantial growth. The approval of our ETF earlier this year has brought a wave of encouraging news, making us believe that our investment in crypto was a wise decision.

Despite significant progress, there is still some ground to cover as the Financial Innovation and Technology for the 21st Century Act (FIT21), hailed by certain industry players as a positive move, heads to the Senate with broad bipartisan approval.

As a market analyst, I would put it this way: I’ve observed that Flowdesk currently lags behind its American competitors in terms of market readiness. Some operational challenges persist in the market that hinder Flowdesk from matching the level of service and efficiency provided by U.S. counterparts.

One challenge we face is the complex issue of custody regulation. According to Chaumont’s perspective, if the United States could establish a streamlined and internationally aligned regulatory system for custody, it would open up vast opportunities for business growth.

Harmonization could potentially resolve numerous issues, as demonstrated by the European Union’s MiCA regulations. According to Chaumont, this EU framework effectively eliminates the requirement for separate licenses from individual member states. Unfortunately, this is still a prevalent situation in the United States.

In Europe, registration in one country is sufficient for you to conduct business throughout the region.

In the past year, the United States has experienced significant changes, and it’s possible that harmonization could be a topic of discussion during Consensus 2025.

“According to Chaumont, if it weren’t for these obstacles and uncertainty, our growth rate would have been tripled, similar to what we achieved in France.”