Building Bridges in Capital Markets Through Relationship-Core Strategy
A Profile of Absolute Collateral's CEO Steven Griffiths
Building Bridges in Capital Markets Through Relationship-Core Strategy
Absolute Collateral (AC) is emerging as a critical infrastructure player in the development of capital markets worldwide, driven by a commitment to expand trading relationships and foster cross-regional trading. Founded by Steven Griffiths, the company’s mission is to connect countries and regions by leveraging existing bond and equity markets and introducing new trading avenues across emerging and established ecosystems.
Relationships Over Pure Technology
Absolute Collateral focuses heavily on the human element, believing that while “anyone can build a trading platform,” the key difficulty lies in getting “Bank A to trade with Bank B.” This reliance on collaboration forms the company’s relationship-core strategy.
Absolute Collateral approaches market development by connecting current players in emerging regions, focusing first on MENA (Middle East and North Africa). The initial focus is on the MENA region, combining REPO (Repurchase Agreements), trading platforms, and human connections. Griffiths expressed his thoughts on the first regional strategy, “I thought they had a bond and equity market - let’s develop that and utilize what already exists. Expand on what already exists.”
Griffiths emphasizes “bringing in expertise from the capital markets side to technology development, rather than the reverse.” The Repo Trading Platform itself is sophisticated, though it was initially simplified to ensure ease of client onboarding.
Traction and The Events Engine
Absolute Collateral has built significant momentum through a dedicated focus on strategic traction and visibility, notably through events. The company has already participated in the central bank sandbox in Bahrain, which serves as a launching pad for the rest of the GCC (Gulf Cooperation Council). Traction includes securing numerous regional power clients and establishing new trading partners for them.
Rather than relying on private meetings, the founder uses events and roundtables to showcase the companies Absolute Collateral engages with and highlight the perks and value propositions of specific countries and regions. The goal is to add value to every person and entity in the ecosystem, while fostering new mutually beneficial trading avenues.
“The event strategy is crucial, acting as an anchor for traction,” says Griffiths, adding, “The whole idea of the event is to shine a light on companies, market innovators, and the people from that region.” Thinking of a fond moment from a recent event - he smiles and says, “Coffee tables can be more effective than a venue and a show!”
AC’s events have attracted significant attendance and participation from key institutions, including Sell-Side, Buy-Side, Financial Market Infrastructure Providers, Sovereign Wealth Funds (SWFs), Central Banks, and Stock Exchanges.
Recent events illustrate the company’s global reach:
MENA: Manama, Dubai, Abu Dhabi, Riyadh, and Doha
EMEA: London & Frankfurt
North America: New York, Boston & Toronto
APAC: Singapore, Hong Kong, and Kuala Lumpur
Overall, the company has hosted over 12 events in the last few months, covering 4 MENA, 3 Asia, 2 EU, and 3 American locations, involving approximately 150 institutions, including Market Infrastructure firms, Digital initiatives, and Islamic, global, and conventional banks. Griffiths notes that if AC can create network momentum, trading trust, and infrastructure, progress in the regions’ capital markets will accelerate.
The Founder’s Vision and Origin Story
Steven Griffiths’ journey to founding Absolute Collateral was rooted in his experience working at a top-tier bank, where he observed that client relationships, networks, and reputation were invaluable to market liquidity. Steven Griffiths applied this concept to new markets, utilizing his energy and desire to build trading platforms and new connections.
This observation also sparked the goal of increasing client trading connectivity, which would naturally lead to lower charges for the client. Creating an opportunity to lean on his love of creating new connections, trading routes, and platforms. Steven Griffiths applied this concept to new markets, utilizing his energy and desire to build trading platforms and new connections.
The core focus of this work is relationship-core, emphasizing that while anyone can build a trading platform, the true differentiator is the ability to get “Bank A to trade with Bank B.”
Griffiths holds a Maths with Economics honors degree from the University of London and a Master’s from Imperial College / Business School, and he started his career in Investment Banking. In his early career, Griffiths was determined to pursue an internship at a Tier 1 Bank in America. By applying to only three internships at Tier 1 banks, he secured an offer from Merrill Lynch in Boston. During his internship, his determination was on full display as he had to take out a £5,000 loan to cover expenses, which included £4,500 for three months’ rent and only £500 for food, resulting in a diet often restricted to one ramen meal a day! While reflecting on the time, he says, “I always had the belief it’s not a hard thing to do - how hard can it be?”
Following this, he interviewed at GS in London, maintaining an approach described as “uncompromising on the vision but flexible on how it happened.” His professional experience includes working at Commerzbank, Citigroup, and MUFG, where he built trading platforms and clearing portals covering various international locations such as Singapore, Hong Kong, Australia, New York, and London.
For the founder, the core challenge was never perceived as a problem that had to be solved, but rather an opportunity to expand on existing infrastructure. He applied the idea that growing a new market should start with the repo (repurchase agreement) market, referencing findings from a World Bank report. This focus is essential, as Griffiths believes that cash and collateral movement must precede the development and acceleration of primary issuances, secondaries, derivatives, and ultimately placing the capital market onto the blockchain.
Funding and Future Direction
Absolute Collateral’s initial investors include friends and family, providing access to markets that might otherwise be closed to non-capital-market participants. Strategic investors include High Net Worth (HNW) investors, individual investors, ex-bankers, and Portfolio Managers (PMs) of Family Offices (FOs).
The company is positioning itself to make future funding rounds (Series A, B, and C) more streamlined, with the Series A targeting the tight network of capital markets-focused people. The goal is to replicate the current success in Bahrain and Qatar across the rest of the GCC, involving both traditional banks and corporates.