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Kotova as an Investment

Kotova is building a regulated, non-custodial crypto swap infrastructure for the European market. This page provides institutional and retail investors with transparent information about our business model, regulatory positioning, technology, and risk factors.

Last updated: January 24, 2026

Vision & Strategic Rationale

The crypto industry faces a fundamental trust problem. Most instant swap providers operate from offshore jurisdictions with minimal regulatory oversight, creating barriers for institutional adoption and exposing users to counterparty risk.

Our Thesis

We believe there is significant market opportunity for a regulated, EU-compliant crypto swap platform that combines the speed and convenience of instant swaps with the credibility and legal certainty that institutional investors and businesses require.

Strategic Positioning

Kotova is positioning itself at the intersection of regulatory compliance and operational efficiency. By building within the German and EU regulatory framework from day one, we aim to establish a competitive moat that offshore competitors cannot easily replicate.

Key Strategic Pillars

  • Regulatory-first approach to crypto infrastructure
  • Non-custodial architecture minimizing regulatory burden
  • B2B and API-first strategy for scalable growth
  • European market focus with expansion potential

Product Portfolio

Our product roadmap is designed to build a comprehensive crypto financial services ecosystem, starting with our core swap infrastructure and expanding into complementary services.

Crypto Swap Platform (Kotova X)

Instant crypto-to-crypto exchange without traditional exchange accounts. Non-custodial architecture with funds held only during swap execution. Aggregates liquidity from DEXs and CEXs for optimal pricing. Supports BTC, ETH, major stablecoins (USDT, USDC), and utility tokens.

  • No sign-up required for basic swaps
  • API integrations for businesses
  • Transparent fee structure

Crypto Escrow Service

Automated crypto escrow for P2P, B2B, and marketplace transactions. Features blind escrow with AI-assisted dispute resolution. Designed for high-value transactions requiring trusted intermediation without custody.

  • Multi-signature security
  • Programmable release conditions
  • Dispute resolution framework

Pay Your Bills

Crypto-to-SEPA payment solution allowing users and businesses to pay invoices using cryptocurrency. Backend handles conversion to stable assets or fiat equivalents, reducing volatility exposure for merchants. Positioned for EU-compliant payment processing.

  • SEPA integration
  • Real-time conversion
  • Invoice management

Market Opportunity

The Problem

The instant crypto swap market is dominated by offshore, unregulated providers. While convenient, these platforms pose significant risks for institutional users and businesses that require regulatory compliance, audit trails, and legal recourse.

Market Gap

There is a clear gap between fully regulated exchanges (high friction, custody-based) and instant swap providers (low friction, unregulated). Kotova is positioned to fill this gap with a compliant, non-custodial solution.

Target Segments

  • Retail crypto users seeking trusted swap services
  • High-net-worth individuals requiring compliance
  • Businesses with crypto payment exposure
  • Payment processors and fintechs (B2B/API)
  • Web shop operators seeking crypto functionality

Competitive Landscape

Offshore Swap Providers: Fast and convenient but unregulated. Unable to serve institutional clients or operate openly in regulated markets.

Major Exchanges: Regulated but custody-based, requiring full onboarding, account management, and exposure to exchange counterparty risk.

DEX Aggregators: Non-custodial but complex for average users and lacking fiat on/off ramps or regulatory clarity.

Our Advantage

By combining non-custodial architecture with EU regulatory compliance, we offer the convenience of instant swaps with the credibility and legal protection that institutional users require. This positioning is difficult for offshore competitors to replicate.

Business Model & Revenue Streams

Swap Fees

Primary revenue from spread-based fees on crypto-to-crypto swaps. Competitive pricing enabled by liquidity aggregation across multiple sources.

API & B2B Services

Revenue from API access for businesses, payment processors, and fintechs. Volume-based pricing with enterprise tiers for high-volume integrators.

Escrow Fees

Transaction-based fees for escrow services. Premium pricing for complex dispute resolution and high-value transaction support.

Payment Processing

Future revenue from crypto-to-SEPA payment processing. Service fees for invoice payments and merchant integrations.

Regulatory & Legal Framework

Kotova is designed from the ground up to operate within the German and EU regulatory framework. Regulatory compliance is a core competitive advantage, not an afterthought.

Jurisdiction

Germany / European Union. Our legal structure and operations are designed to meet German and EU regulatory requirements from inception.

Key Regulations

  • MiCA – Markets in Crypto-Assets Regulation
  • KWG – German Banking Act
  • CASP – Crypto-Asset Service Provider regime
  • GwG / AML – Anti-Money Laundering (FATF standards)
  • GDPR – Data protection compliance
  • PSD2 – Potential relevance for payment services

Regulatory Strategy

Our non-custodial architecture is specifically designed to minimize regulatory burden while maintaining full compliance. Funds are held only during swap execution, avoiding classic custody requirements where possible.

Compliance Measures

  • CASP license evaluation and application
  • Transaction monitoring (KYT) integration
  • Data protection by design (GDPR)
  • Secure infrastructure and key management
  • Regular compliance audits
MiCA Ready GDPR Compliant CASP Licence KYT Monitoring

Technology & Security

Architecture

  • Modern web frontend with responsive design
  • Secure backend with separated public/private services
  • Dedicated swap engine for transaction processing
  • API-based liquidity sourcing from multiple providers
  • Active-active infrastructure for high availability

Scalability

  • Designed for high-volume swap processing
  • Layer-2 blockchain support (Arbitrum, Polygon, etc.)
  • B2B and B2B2C ready architecture
  • Horizontal scaling capabilities

Security Measures

  • No long-term hot wallet balances
  • Temporary escrow logic only during swaps
  • HSM/KMS key management
  • Risk scoring and fraud detection
  • Defense against hacks, key compromise, API abuse
  • Regular security audits

Infrastructure Security

  • Enterprise-grade cloud infrastructure
  • DDoS protection and rate limiting
  • Encryption at rest and in transit
  • Comprehensive logging and monitoring

Risk Factors

Investing in early-stage fintech companies involves significant risks. Prospective investors should carefully consider the following risk factors before making an investment decision.

Regulatory Uncertainty: Evolving MiCA and German regulations may impact business model or require licensing adjustments.
Licensing Timelines: Regulatory approval processes may take longer than anticipated, delaying market entry.
Compliance Costs: AML/KYC infrastructure and ongoing compliance may be more costly than projected.
Cybersecurity Threats: Despite security measures, crypto platforms remain targets for sophisticated attacks.
Liquidity Dependency: Platform operations depend on external liquidity providers and market conditions.
Market Volatility: Crypto market conditions may impact user activity, revenue, and business viability.
Competitive Pressure: Large exchanges may enter the compliant instant swap market with greater resources.
Legal Interpretation Risk: Novel regulatory frameworks may be interpreted differently than anticipated.

Growth Opportunities

First-Mover Advantage: Early positioning in the regulated EU instant swap market before major competitors.
Institutional Adoption: Access to institutional clients that cannot use unregulated offshore providers.
API-Driven Growth: B2B integrations enabling scalable, recurring revenue from enterprise clients.
Product Expansion: Clear roadmap for escrow and payment services with existing infrastructure.
European Trust Advantage: German regulatory positioning provides credibility in risk-averse markets.
MiCA Clarity: Standardized EU regulation may accelerate adoption and simplify expansion.

Growth Strategy & Outlook

Current

Phase 1: Foundation

  • Core platform development
  • Licencing Framework establishment
  • Initial liquidity partnerships
  • Beta testing with select users
Q3 2026

Phase 2: Market Entry

  • Public platform launch
  • CASP licensing completion
  • B2C user acquisition
  • Marketing and brand building
Q4 2026

Phase 3: B2B Expansion

  • API product launch
  • Enterprise partnerships
  • Payment processor integrations
  • Volume-based growth
2027

Phase 4: Diversification

  • Escrow service launch
  • Pay Your Bills product
  • Additional jurisdiction expansion
  • Strategic acquisitions

Investor Inquiries

We welcome inquiries from qualified investors and institutional partners interested in learning more about investment opportunities at Kotova.

Contact Our Investor Relations Team

For detailed investment information, due diligence materials, or to schedule a presentation, please contact us through the channels below.

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Hamburg, Germany
@kotova_io

Important Disclaimer

This page is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any investment in Kotova involves significant risks, including the potential loss of the entire investment. Past performance is not indicative of future results.

The information contained herein is subject to change without notice. Kotova makes no representations or warranties, express or implied, regarding the accuracy, completeness, or reliability of the information provided. Prospective investors should conduct their own due diligence and consult with qualified legal, financial, and tax advisors before making any investment decisions.

Crypto assets are highly volatile and speculative investments. Regulatory frameworks for crypto assets are evolving and may impact the company's ability to operate or the value of any investment. This information is not intended for distribution in jurisdictions where such distribution would be contrary to law.