In today’s interview, we sit down with Gediminas Butkus, CEO of Locked.Money, an asset management platform bridging the gap between traditional and decentralized finance (DeFi).
Gediminas has a background in legal consulting for crypto clients and deep roots in the crypto space dating back to Bitcoin’s early days when it traded at $200; he brings a wealth of knowledge and experience. In the interview, he shares insights on the evolution of cryptocurrency and the inspiration behind Locked.Money, and how his platform democratizes access to sophisticated financial tools.
Gediminas entry into Web3
Hello, Gediminas; please introduce yourself and tell us about your previous experiences in the space.
Thank you. I am an entrepreneur with a deep passion for innovation and freedom in life and business. My crypto journey began when Bitcoin was priced at $200. At the time, I was interested in using it as currency for transactions rather than holding it for investment. Over the years, however, I’ve closely followed the evolution of cryptocurrency and its surrounding ecosystem.
Previously, I founded and led a legal consulting firm where most clients operated in the crypto industry, such as exchanges, launchpads, and active traders. These interactions gave me invaluable insights into people’s unique challenges in bridging traditional finance and crypto, particularly when handling legal and taxation matters.
These experiences naturally motivated me to dive deeply into crypto. For the past few years, I’ve actively participated in DeFi communities, building my community where we collaborate, share insights, and grow together.
What inspired your move into Web3?
My natural transition into Web3 was driven by the promise of greater financial freedom and innovative ways to generate wealth. I’ve always been intrigued by human psychology, and the decentralized, community-driven ethos of DeFi resonates well with me. Web3 offers an environment where my entrepreneurial spirit thrives, a unique space to innovate and make a meaningful impact. The decentralized nature of Web3 offers countless opportunities to build solutions that traditional finance might find cumbersome or impossible to implement.
Democratizing services once reserved for the ultra-wealthy
What is Locked.Money?
Locked.Money is an asset management platform with a unique value proposition. It aims to address the challenges of bridging traditional finance and DeFi. As the crypto industry moves toward a more regulated market, Locked.Money is designed to help users navigate this shift with ease. We provide solutions that address changing regulatory demands and democratize access to sophisticated financial tools—tools that were once only accessible to the ultra-wealthy.
Locked.Money ‘provides access to sophisticated legal frameworks traditionally reserved for the ultra-wealthy.’ Why do you think these services have been a preserve of the ultra-wealthy?
The days when one could easily set up an offshore company to mitigate taxation with minimal scrutiny are long gone, especially after the Panama Papers. Today, achieving tax efficiency requires significant investment in money and time, making it a privilege largely reserved for the wealthy. Locked.Money aims to level the playing field by providing cost-effective legal frameworks that allow regular users to benefit from strategies previously exclusive to the elite.
You have previously founded and led a legal consulting firm. How are you leveraging that expertise into Locked? Money? Also, tell us a bit more about the ‘tax benefits.’
Absolutely! My legal advice company has been instrumental in shaping Locked.Money. We’ve developed cutting-edge frameworks that, in many jurisdictions, enable users to achieve tax efficiency by depositing their crypto assets into our platform, effectively making them co-owners of a legal entity. This structure allows users in certain countries to defer tax obligations, much like the benefits of traditional Foundations or Trusts. Our approach, tailored specifically for the crypto landscape, bridges legal compliance with the evolving needs of decentralized finance.
How does Locked.Money work?
Give us a technical overview of how that works.
We’ve engineered multi-signature vaults for asset security. After users pass our KYC process, they are paired with a professional asset manager who is a co-signer and executor for transactions. Crucially, the protocol does not have access to or control user assets, meaning users retain full control without needing to trust any third party. Leading firms have rigorously audited our smart contracts to ensure security and robustness.
Some believe that integrating legal frameworks with decentralized finance undermines the ethos of decentralization. How do you balance offering sophisticated legal structures while maintaining the decentralized nature of blockchain?
Our approach to decentralization is maintained through blockchain-based vaults, each linked to its legal unit. This integration of legal frameworks doesn’t centralize control. Instead, it enhances both tax effectiveness and asset protection. That way, we make the benefits of legal structures accessible to all while preserving the decentralized ethos of blockchain.
In light of increasing regulatory scrutiny on crypto assets and tax evasion, how do you ensure that Locked.Money services remain compliant without becoming a target for regulators?
To ensure our services remain compliant and avoid regulatory scrutiny, we invariably collaborate with tax and legal professionals worldwide. These experts continuously validate our business model, providing legal and tax opinions that align our platform with applicable laws while advocating for smart tax strategies rather than evasion.
How do you charge for the services?
Our service is subscription-based, starting with a Free tier that gives users access to our smart contract functionalities. Professional tiers offer a full suite of legal infrastructure benefits, including debit card services and on/off ramp solutions, all available for a transaction-based fee. With this flexible model, we ensure that users at every level can access the tools they need to manage their assets efficiently.
Partnerships and competition
Who are your competitors in the space?
While there are no direct equivalents to the services offered by Locked.Money, companies like Fireblocks and BitGo serve as indirect competitors, particularly as we look to expand our offerings to institutional clients.
What role have partnerships played in the project?
Partnerships are crucial for gaining visibility and credibility in the crypto space. One notable project we’ve partnered with is Tangem, which produced branded hardware wallets to bolster our security offerings. We plan to distribute these hardware wallets for free to our paid category users.
Looking ahead
You recently completed your first seed and private rounds. Do you have plans to launch your own token for a public sale?
Yes. We’ve raised over $1.3M through a token sale without paid outreach, demonstrating the strong market demand for our solution. We plan to have a public token sale towards the end of 2024. This will provide the next opportunity for the public to invest before the token hits the market.
Why should users be excited about the project?
We are revolutionizing financial interactions by providing accessible and innovative solutions that empower users to navigate the complexities of crypto and traditional finance. Locked.Money offers cost-effective legal frameworks that help everyone, not just the elite, simplify their crypto transactions and achieve greater freedom. For instance, during an AMA session with the Brazilian community, our debit card solution was warmly received as it solves persistent banking challenges and economic instability. We’re not just providing services; we aim to help people navigate and improve their financial circumstances.
