Denode, Mongolia's regulated crypto exchange and digital asset tokenization platform, was officially registered as a Virtual Asset Service Provider by the Financial Regulatory Commission's Decree No. 653 on 25 November 2022, and launched operations in February 2023.
We present the 2023 annual report of AND Denode LLC in accordance with the "Regulations on Virtual Asset Service Provider Activities" approved by Resolution No. 175 of the Financial Regulatory Commission on 6 April 2022. This report showcases our achievements in cryptocurrency trading, blockchain technology implementation, and digital asset tokenization.
Summary of Denode's Virtual Asset and Cryptocurrency Services
AND Denode LLC, operating as Denode, is a foreign-invested limited liability company established as a subsidiary of AND Global Group in November 2021. As a regulated crypto exchange, Denode aims to bridge the gap between traditional finance and the world of digital assets, including cryptocurrencies like Bitcoin.
Denode has developed the Denode.io platform to provide various virtual asset and cryptocurrency services to customers in domestic and international markets. Our platform ensures safe, reliable, and legally compliant trading of digital assets, including Bitcoin and other cryptocurrencies.
Key achievements in 2023:
- February 2023: Launched international cryptocurrency trading, including Bitcoin, Ethereum, Solana, Dogecoin etc. on the Denode exchange.
- March 2023: Developed Denode Launchpad for tokenized assets and introduced Mongolia's first fixed-yield token, Digital Lending Token (DLT), as a private placement.
- September 2023: Pioneered tokenized stocks trading in Mongolia, offering tokenized equities of largest global companies such as Apple, Tesla, Amazon, NVIDIA etc., through our digital asset tokenization platform.
These innovations position Denode as a leader in bringing real-world assets (RWA) to the blockchain, enhancing liquidity and accessibility in the Mongolian market.
Products and Services on Denode's Regulated Crypto Exchange
The Denode.io platform offers the following virtual asset and cryptocurrency services in accordance with the Virtual Asset Service Provider law of Mongolia:
- Exchange between virtual assets and official currencies;
- Exchange between one or more types of virtual assets;
- Transfer virtual assets;
- Store and manage virtual assets and related instruments;
- Organize activities related to offering and selling virtual assets to the public, participate in financial activities, and provide services.
Our platform connects with top global cryptocurrency exchanges, allowing customers to trade Bitcoin and other cryptocurrencies at competitive prices with high liquidity.
The Denode Launchpad facilitates the tokenization of real-world assets (RWA), bringing traditional financial instruments onto the blockchain. Our successful launch of tokenized stocks demonstrates our commitment to bridging traditional finance with digital assets.
Summary of Company Operations and Financial Status
In 2023, AND Denode LLC expanded its range of products and services on the Denode exchange, adding new revenue streams.
As our innovative products and services are relatively new to the market, public recognition is still growing, which is the main factor affecting our current revenue. While sales revenue is currently insufficient to cover operating expenses, necessary funding has been provided by our parent company, AND Global Group, in the form of investment. As of the end of 2023, the company has no loans or external debt.
Moving forward, until the revenue from virtual asset services can fully finance the company's operating expenses, the necessary funding will be provided from the group company's investment sources, with the relevant budget already approved.
It's worth noting that as of the end of 2023, AND Denode LLC has not participated in any transactions involving conflicts of interest or significant transactions.
Commitment to Security and Compliance
In 2023, Denode conducted both internal and third-party certification audits for the Information Security Management System ISO/IEC 27001:2013 standard. We also had our 2023 financial statements audited by an approved audit company. These audits found no violations, affirming our status as a trusted, regulated crypto exchange.
Denode implements robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures using Elliptic's blockchain analytics solutions. This ensures the security and compliance of all cryptocurrency transactions on our platform.
Looking Forward
As we continue to expand our operations, Denode remains committed to providing reliable cryptocurrency and digital asset services that earn our customers' trust. We aim to further develop our digital asset tokenization capabilities, bringing more real-world assets (RWA) onto the blockchain and expanding our tokenized stocks offerings.
For more detailed information about our annual report and our services in cryptocurrency trading, blockchain technology, and digital asset tokenization, please see here.
Explore the world of digital assets, cryptocurrency, and blockchain with Denode - your trusted partner in the evolving landscape of finance and technology.
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