Hong Yea is the Co-Founder and CEO of GRVT. After a decade as a trader at Credit Suisse and Goldman Sachs, he co-founded GRVT in May 2022. GRVT aims to transform financial markets by integrating blockchain technology and self-custody solutions, with a focus on blockchain settlement and trustless risk management. Hong’s international upbringing and business studies at Yonsei University shape his strategic vision for GRVT’s mission.
What inspired you to transition from a decade-long career in traditional finance to co-founding GRVT just before the 2022 crypto crash, and how did your experience shape your vision?
I saw the wider financial industry inevitably adopting blockchain technology. It’s like a smarter internet, not just for reading and writing data, but for storing immutable logic. This has obvious use cases in finance, starting with eliminating the need for counterparty trust—a major risk in both crypto and traditional finance.
I’d long considered the problems with traditional finance: it’s difficult for most people to access financial products, professional trading environments, and financial knowledge. These barriers make it hard for the general public to make money. I had always dreamed of starting my own business, though nothing had convinced me to fully commit until 2022. At a crypto conference in Barcelona, I met industry experts and noticed a gap in the market where traditional finance expertise was lacking. It was the perfect opportunity to step in.
How did the collapse of FTX influence GRVT’s development, and how does GRVT address the vulnerabilities that contributed to the downfall of other exchanges?
FTX’s collapse revealed three major risks: centralised exchange (CEX) default risks, decentralised exchange (DEX) hacking risks, and regulatory risks. We aimed to create an exchange that merges the best of blockchain and traditional security practices to mitigate these risks.
First, blockchain settlement and margin management eliminate default risk, allowing users to retain control of their funds. We also implement traditional security measures such as passwords, two-factor authentication, and whitelisting to reduce vulnerabilities. Building GRVT on a private chain lowers the risks associated with smart contracts on public chains.
For regulatory risks, we ensure compliance to protect users from bad actors and to operate legally without the risk of government shutdowns. With clearer regulatory frameworks emerging, we proactively sought licences from the outset. Beyond addressing specific risks, the broader issue is how to rebuild trust in the industry, especially among non-crypto users. While crypto is gaining mainstream recognition, it’s still often associated with scams. At GRVT, our long-term goal is to restore trust through blockchain transparency and security.
We’ve also implemented additional measures to enhance asset safety, such as self-custody solutions (GRVT Wallet), partnerships with compliance firms like Elliptic, and on-chain settlements for greater transparency. We collaborate with ComplyCube for enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) measures.
How do you simplify the complexities of blockchain technology to create an intuitive platform for both novice and experienced traders?
Blockchain’s complexity often leads to a steep learning curve, especially for decentralised exchanges. For example, spot trading volumes on DEXs are still only around 10% of CEX volumes. To simplify things for users, we identified three key areas for improvement: deposits (bridging), wallet creation, and gas tokens.
Bridging—moving funds across wallets—requires multiple steps and gas fees, which can be daunting for newcomers. Similarly, wallet creation can be confusing for those unfamiliar with blockchain. Additionally, users need gas tokens for any blockchain transaction, further complicating things.
At GRVT, we address these issues by creating a user experience that mirrors traditional financial platforms. Users don’t need to hold gas tokens or learn how to bridge funds, and deposits from other centralised exchanges follow a familiar process. Our web-based GRVT wallet lowers the barrier for new traders, removing the need for external wallets like MetaMask.
Our ultimate goal is to eliminate any learning curve, much like how Apple made smartphones accessible to everyone. We will continue to improve the platform based on user feedback.
How does GRVT navigate the evolving regulatory landscape, and what role do you see regulation playing in the future of hybrid exchanges?
Regulation is inevitable for CEXs, DEXs, and hybrid exchanges alike, and regulators are already moving to regulate platforms like UniSwap. As the regulatory landscape evolves, we remain agile to ensure compliance.
We intend to use blockchain technology beyond crypto, seeking licences for broader capital markets to offer a wider range of financial products and reach a broader clientele.
If we take a step back, regulation is the “rule of the game” enforced by governments, and failing to follow these rules risks expulsion from the market. However, even strict rules don’t guarantee compliance—bad actors exist in traditional finance too. This is why we believe in the power of blockchain. The immutable logic of code can enforce rules more reliably than regulations alone.