Tag Archives: blockchain

SEC to Make a Move to Sue Ripple over XRP

SEC to Make a Move to Sue Ripple over XRP

SEC to Make a Move to Sue Ripple over XRP

Sharing two articles how the SEC is making a move to sue Ripple over its XRP cryptocurrency, by Blockchain.news and The Daily Hodl.

 

Blockchain.news

SEC to Make a Move on Suing Ripple over XRP Cryptocurrency as Christmas Holidays Kick In:

By Shine Li

Ripple CEO Brad Garlinghouse revealed that a lawsuit may be in the works against his fintech company for the XRP cryptocurrency sooner than later.

It may not be such a Merry Christmas for Ripple after all. According to Fortune, the United States Exchange and Commission (SEC) may soon be filing a lawsuit against Ripple, just before the holidays. Ripple’s CEO has argued that this was “preposterous” and criticized the SEC to be “wrong in a matter of law and fact.”

The SEC’s plan to regulate the XRP token comes at a time when the SEC chairman, Jay Clayton, has announced that he will be resigning at the end of the year. Should a lawsuit be filed against Ripple, the legal decisive work will fall on the next administration, under Biden’s presidential rule. Garlinghouse has criticized that as well as the SEC’s decision to sue right before the holidays kick in. He said:

“It’s not just Grinch-worthy, it’s shocking. It’s an attack on the entire crypto industry and American innovation.”

Why Ripple is being sued by the US SEC

XRP cryptocurrency has long been caught in the crosshairs of the SEC and Ripple over how it should be classified. Unlike its counterparts Bitcoin and Ethereum, XRP has been heavily scrutinized by the US government, on the grounds that it is a security and should therefore be filed as one. Unlike Bitcoin and Ethereum, which are exempt from securities laws as they are decentralized cryptocurrencies with no central governance, XRP is released from escrow on a monthly basis from Ripple’s treasury reserves, something that many have viewed as evidence that XRP is similar to shares owned by a company.

Although Ripple has attempted to make a name for itself and disassociated from its native XRP cryptocurrency, putting it into the hands of an open-source network, the fact that many of its owners and co-founders still hold XRP and can sell it on demand has been questioned as well. Most of the cryptocurrency’s units are still owned by Ripple, as the bulk of XRP cryptocurrencies are yet to be distributed. Currently, 45 billion XRP has been distributed since their inception in 2012.

 

Ripple bites back, says XRP is not a security

The fintech firm has fought back and has reiterated that the company is not allowed to tap into its XRP reserve funds as it wishes, under the notion that the virtual currency is increasingly used by banks and merchants now for secure cross-border transactions. Additionally, XRP is released from escrow on a carefully scheduled plan. Garlinghouse has reiterated that it was hard to view XRP as a security and previously has pinpointed that the US may be the only G20 member that views XRP as they do.

As reported by Blockchain.news, he previously said: “IF XRP were deemed a security here in the United States, we have other G20 markets that have taken a different view. I’m not aware of any market globally that thinks that XRP is a security.”

The constant legal pressure exerted on XRP by the SEC has caused Ripple to look into placing its headquarters elsewhere this year, although it has reiterated time and again that it is a proud US-based firm.

Article produced by Shine Li:

https://blockchain.news/news/sec-make-move-suing-ripple-xrp-cryptocurrency-christmas-holidays-kick-in

 

 

The Daily Hodl

XRP Price Plunges After Ripple Says Company Will Be Sued by SEC

By Daily Hodl Staff

The price of XRP is down 16% after Ripple CEO Brad Garlinghouse said the company will be sued by the U.S. Securities and Exchange Commission (SEC).

The payments startup, which owns more than half of the total supply of XRP, is gearing up to fight accusations that the company has illegally sold the digital asset as an unregistered security, reports the Wall Street Journal.

Garlinghouse calls the move an attack on the entire industry.

“Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH.

We know crypto and blockchain technologies aren’t going anywhere. Ripple has and will continue to use XRP because it is the best digital asset for payments – speed, cost, scalability and energy efficiency. It’s traded on 200+ exchanges globally and will continue to thrive.

The SEC – out of step with other G20 countries and the rest of the US government – should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China). Make no mistake, we are ready to fight and win – this battle is just beginning.”

Ripple placed the majority of its XRP holdings in escrow back in 2017 and has routinely sold portions of its holdings to institutional investors and on crypto exchanges.

It also uses the digital asset to power one of its remittance platforms, called On-Demand Liquidity.

Ripple, which is also facing a class-action lawsuit on the status of XRP, has long argued that the cryptocurrency is not a security.

The company says XRP exists independently of Ripple and cannot be a security because investors in the digital asset are not shareholders of Ripple in any way.

Article produced by Daily Hodl Staff

https://dailyhodl.com/2020/12/21/xrp-price-plunges-after-ripple-says-company-will-be-sued-by-sec/

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Crypto banks are the sector’s game-changers

Crypto banks are the sector’s game-changers

Crypto banks are the sector's game-changers

By DARIUS MOUKHTARZADEH

Crypto banks offer an integrated solution that is connected to the traditional financial world — which, most importantly, is compliant with regulations.

The crypto space has come a long way since its inception in 2008. Many areas have improved over the last 12 years, such as custody and exchange solutions. If you ask the early adopters of crypto, they can tell you stories about how hard it was to set up a wallet or how cumbersome it was to go to a meetup and exchange Bitcoin without being scammed.

Since then, things have changed for the better when it comes to user experience and user interface. Nowadays, creating a cryptocurrency wallet is as easy as setting up an email address. The same goes with purchasing crypto — hundreds of reliable exchanges have emerged in recent years, enabling the simple and secure purchase and sale of cryptocurrencies.

While I could mention many more examples in the crypto space that have improved over the last decade, there is still a major problem with most products and services in the crypto space: they are not in a fully integrated setup. This is where crypto banks come in and will be game-changers for the crypto space.

When I use the word integrated, I refer to two areas: the first is in regards to the crypto ecosystem, which offers a great number of interesting and promising applications and services that are distributed over several platforms and service providers; the second area is in the context of the financial services industry, where crypto banks offer an integrated solution due to being a gateway between the crypto space and the traditional finance space. I will cover both areas, as they are equally important to understand the revolutionary aspect of crypto banks.

 

One-stop-shop

Crypto banks allow you to have your crypto assets and your traditional assets — such as fiat currencies, securities and more — in one account. Most people who are into crypto must deal with multiple third parties. You probably have some crypto assets on multiple exchanges, hardware wallets, on services providing non-bank lenders, and maybe you’ve already interacted with popular decentralized financial applications. Of course, we should also not forget about your fiat bank account, which you need in order to send funds to another party to purchase crypto assets and send your revenues back when selling crypto.

Ultimately, you have your data and assets all over the place, thus dealing with multiple counterparty risks.

Crypto banks provide that you have all your various crypto holdings, fiat currencies and services in one convenient bank account and are dealing with one service provider. While distributed ledgers are good, distributed control is bad. Crypto banks allow you to have centralized control over your decentralized assets. This eliminates the current risks many crypto investors have when dealing with a large number of different providers in different jurisdictions. With a crypto bank, you have one specialized gateway to multiple services and products.

 

A bridge to the old world

Even though the benefits of crypto assets are obvious, the number of traditional players such as pension funds, traditional hedge funds or family offices that go into crypto is surprisingly small. While recent announcements such as PayPal’s new crypto offering also show a trend of institutions entering the space, the large majority is not yet doing so. The reason for this is the lack of regulations and trusted partners to work with.

Crypto banks are the perfect partner to help institutional players enter the crypto space, make investments into the world of digital assets, and securely store assets with a full, banking-grade service offering.

Often, institutions want to invest in crypto, but their investors or board of directors are afraid of the risk involved in dealing with crypto assets. However, if a fund can partner up with a regulated bank that specializes in crypto, this can change the opinion of important stakeholders. This could increase the adoption of crypto immensely, as the mass market often follows the big players. Getting more and more institutional players into crypto will benefit the whole space.

Crypto banks work as the bridge between the crypto world and the traditional financial services world. By having a banking license, a crypto bank fulfils the requirements and standards of the traditional financial services world while offering services and products in the crypto space. Creating a seamless connection between these two worlds will be game-changing.

 

Being regulated is the key for the future

Beforehand, the crypto space used to be mostly unregulated. Similar to custody and exchange solutions, this has changed greatly, benefiting investors in particular. Most jurisdictions have created laws and regulations around crypto assets and are further designing new laws to integrate them into the regulated financial services world such as in Switzerland.

A crypto bank is, by design, compliant with regulations. In order to receive a banking license, a project needs to fulfil all regulatory requirements stated and examined by the regulator. This gives crypto investors the security that there will be no crackdowns on such service providers. If we look at the current situations of several exchanges dealing with regulators for not being compliant, one can understand the benefit of working with a regulated partner.

Globally, the trend is heading toward more regulation. I believe that in the future, offering crypto services without some sort of license will be forbidden. Crypto banks are perfectly positioned, as they have been compliant from the start. This is a major issue for players in the crypto space that have been around since before increased regulations emerged for crypto.

 

Irony of fate

Although Satoshi Nakomoto's original idea was to get rid of centralized intermediaries and one of the old mantras of Bitcoin was to “be your own bank,” crypto banks will ironically be the game-changer for crypto assets by offering all services and products in a compliant, one-stop-shop solution.

Currently, Switzerland and the United States are leading when it comes to granting banking licenses for crypto projects, but it can be expected that the number of specialized banks will increase globally over the next few years as their value proposition becomes evident.

The views, thoughts and opinions expressed here are the author’s alone.

Article produced by DARIUS MOUKHTARZADEH

https://cointelegraph.com/news/crypto-banks-are-the-sector-s-game-changers

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Is Bitcoin Having A Bigger Impact On PayPal Than We Think?

Is Bitcoin Having A Bigger Impact On PayPal Than We Think?

Is Bitcoin Having A Bigger Impact On PayPal Than We Think?

By Adrian Barkley

  • At the start of this week, stocks for PayPal reached record highs which ended a long period of outperformance in relation to the NASDAQ and overall United States stock market.
  • Earlier this year, the company revealed that it would be getting heavily involved with crypto assets and is even set to release its crypto services in the coming year.

At the start of this week, stocks for PayPal reached record highs which ended a long period of outperformance in relation to the NASDAQ and overall United States stock market.

Earlier this year, the company revealed that it would be getting heavily involved with crypto assets and is even set to release its own crypto services in the coming year.

As the company has been very open about its entrance into the crypto space, it has more than likely had an impact on its positive performance but it won’t be the only reason.

Some enthusiasts and analysts have predicted that the bitcoin price could have had a big impact on the prospects for PayPal.

Interestingly, some have even given the idea that PayPal is having an impact directly on the price of bitcoin according to recent data. The data specifically says that PayPal could have gotten to the position of up to 70% of the newly mined bitcoins in the weeks prior to the platform doing live in the US.

If these analysts are to be believed, then the world of crypto could have a much more significant impact on the business of PayPal than previously believed. A good example is the Square cash app that saw its revenue spike massively ever since it enabled bitcoin purchases. 80% of the applications third-quarter revenue came from the leading cryptocurrency.

Article produced by Adrian Barkley

https://cryptodaily.co.uk/2020/12/is-bitcoin-having-a-bigger-impact-on-paypal-than-we-think

 

ecosystem for entrepreneurs

Heiko Closhen, Entrepreneur

Top 5 Blockchain Megatrends to Watch

Top 5 Blockchain Megatrends to Watch

Top 5 Blockchain Megatrends to Watch

By CoinPayments

Blockchain has grown far beyond its hype. The introduction of Self-sovereign identity, Central Bank Digital Currencies, Trade Finance with Blockchain, and several other use cases have left the world ablaze. 

However, these use cases do not even come close to showcasing the true potential of blockchain technology. Its true potential can be explored by considering the latest developments in the world of blockchain or, as we like to say, Blockchain Megatrends

These megatrends are the epitome of the countless possibilities of blockchain inclusion and its influence on today’s data-centric world. In a way, they provide an answer as to why “blockchain” is such a buzzword. 

Here are the five megatrends every blockchain enthusiast should have on their radars.

 

1. BCoT

We’ve all heard of “blockchain” and “Internet of Things,” but not many have heard these two buzzwords used together. 

Introducing “Blockchain Of Things,” which fuses the two concepts and is a trend that we are monitoring closely. As our devices become more interconnected, it is only natural these emerging technologies have synergized the way they have.

By incorporating blockchain within IoT systems, personal privacy can be further strengthened across all of an end user’s devices — a crucial requirement in our growingly connected world. You can buy an IoT- and AI-powered driverless car, but if your movements are being tracked by anyone with decent hacking skills, what good are such innovations? 

Many companies offer their own IoT platforms that exist without standard rules, but they remain difficult to communicate across IoT networks. Unless of course, they combine them with blockchain technology.  

The inclusion of blockchain or the implementation of BCoT is what industries (and end-users) need. Some forward-thinking industries are already implementing the idea, for example in end-to-end supply chain solutions. IoT devices are now being connected to a Blockchain network so that real-time data such as weather conditions, location, pressure, among other factors are uploaded without the possibility of being tampered with. This data can then be made available to other entities like research institutes, insurance agencies, retailers, and consumers, if needed. 

 

2. Token Economy

A token economy is an ecosystem where utility tokens are used to perform different activities and to provide incentives to end-users, among other functionalities. It is a system governed not by a central authority, but by the people who form part of it. Even before the advent of blockchain, tokens were used extensively but the lack of a robust governance model restricted its widespread implementation. 

But, with blockchain now on the scene, the token economy can come out of the shadows. 

We can now represent assets as tokens on top of a blockchain platform. These tokens can be traded with more ease and provide unmatched liquidity. This has also enabled us to monetize assets that were difficult to monetize before the advent of blockchain technology. 

For instance, introducing the concept of non-fungible tokens (NFTs) in the gaming industry allows us to monetize in-game assets. If you have developed significant skills in a game, you can now monetize those skills and trade across other games, which leads us to the next megatrend in focus. 

 

3. Blockchain Interoperability

Blockchain has seen massive adoption in the past few years and this adoption has accelerated the development of new blockchain platforms. As a result, the ecosystem now includes different blockchain applications that work in silos. 

The ability to connect these siloed blockchain networks is known as blockchain interoperability, and it is the biggest megatrend at the moment. 

The ability of these blockchains to freely share information without the need for intermediaries has become imperative for the future. Even if different blockchains are built with different standards, blockchain interoperability through cross-chain platforms enables them to communicate seamlessly. 

There are many ways the industry is trying to address interoperability concerns, by building scalable, secure and interoperable network protocols that allow data and token sharing across public, private, permissionless and permissioned blockchain networks. More so, we are seeing tremendous potential of this interoperability as independent blockchains join an interoperable network, now coined the “Internet of Blockchains.” 

 

4. BaaS

The architecture of blockchain-based applications can be too complex and often requires an in-depth knowledge of several infrastructural protocols involved in building and hosting of such applications. 

This is where Blockchain-as-a-Service (BaaS) steps in to provide a third-party cloud-based solution to entities that want to benefit from blockchain technology but do not have the resources to implement it themselves. 

BaaS is available to businesses looking to build, manage, and host their blockchain-based solutions and smart contracts. Popular BaaS platforms include the IBM Blockchain Platform, Azure Blockchain products, Amazon Managed Blockchain, Corda, and the Oracle Blockchain Cloud Service.

 

5. Post-quantum Blockchain

Quantum computing has brought with it a slew of innovation but, as a powerful processing tool, it has also given rise to the risk of hacking systems that were previously deemed unhackable. 

That said, quantum computers possess enough power to break into any secured system whether it is banking, critical communication, or even blockchain-based solutions. This realisation is what has led to the development of post-quantum — or quantum-proof — cryptography techniques.

There are different possible approaches to address this security risk including Lamport signatures, Merkle signature scheme, as well as Code-based and Lattice-based techniques. 

Quantum-resistant solutions already exist and organisations are already building stronger security protocols that will further complement blockchain networks. Befitting examples include the Winternitz One Time Signature (WOTS) scheme used by IOTA blockchain and Microsoft’s family of post-quantum digital signature schemes known as qTesla. 

But, without getting too technical, just note that these cryptographic techniques are in the works and worth learning more about if you want to dive deep into the world of blockchain, quantum computing, and security.

 

There is no question that the blockchain revolution has begun. 

The aforementioned trends, along with other applications of the technology, are still in a nascent state. With rapid innovation continuously on the brink, the future remains uncertain. But, in the midst of this uncertainty, the inclusion of blockchain in every vertical, either directly or indirectly, is absolute. 

Article produced by CoinPayments

https://blog.coinpayments.net/off-the-ledger/top-5-blockchain-megatrends-to-watch

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

New partnership turns up the volume in crowded blockchain-backed music space

New partnership turns up the volume in crowded blockchain-backed music space

New partnership turns up the volume in crowded blockchain-backed music space

By ANDREW THURMAN

A collaboration between the Utopia Genesis Foundation and STOKR will enable new revenue streams for artists and investment tools for listeners.

Today, a freshly-announced partnership between the music-focused blockchain protocol Utopia Genesis Foundation and digital securities issuance platform STOKR makes it clear that the two companies are looking to heat up competition in the increasingly crowded blockchain-backed music space.

In a press release from Utopia Genesis, the company laid out a series of ways that the collaboration would help artists tokenize and securitize their work, as well as allow listeners access to unique investment vehicles.

The release says that Utopia Genesis’ partnership with STOKR “will allow artists and owners of the music to tokenize assets and create equity or debt instruments for crowdfunding the launch of albums, collectibles, merchandise and more,” as well as enable artists and music owners “to sell fractional ownership of their work’s revenue stream with the community.”

In an interview with Cointelegraph, Daniele Sestagalli, Chief Strategy Officer at Utopia Genesis noted that the long-term vision for the collaboration is to take “the first step toward building a decentralized stock market for music,” one which will benefit both artists and fans.

“Artists can get crowdfunded by fans instead of record labels who give the artists shady deals, so the artists can be more open in what they are doing […] For the fans side they can finally be apart from their favorite artists music and hopefully in the near future get revenue from their investments,” Sestagalli said.

“With this partnership, we are bringing open transparency into the music industry and setting the tone for how tech can help solve many of the industry’s challenges.”

Sestagalli also noted that demand for such a service appears to be picking up, as major music names such as Bob Dylan, Stevie Nicks, and Imagine Dragons have publicly explored selling some of their catalogue rights.

The Utopia Genesis/STOKR partnership is just one of many efforts aimed at leveraging blockchain technology to disrupt the music industry. In October, Audius — a blockchain music streaming service looking to compete with Spotify — made headlines for airdropping $8 million worth of tokens to loyal listeners and artists.

Article produced by ANDREW THURMAN

https://cointelegraph.com/news/new-partnership-turns-up-the-volume-in-crowded-blockchain-backed-music-space

 

ecosystem for entrepreneurs

Heiko Closhen, Entrepreneur

Sweden is studying a potential transition to the e-krona CBDC

Sweden is studying a potential transition to the e-krona CBDC

Sweden is studying a potential transition to the e-krona CBDC

By HELEN PARTZ

The Swedish government is progressing with its central bank digital currency, or CBDC, by launching a formal review of a potential transition to the digital currency.

According to a Dec. 11 Bloomberg report, the review will explore the feasibility of moving the country's payments infrastructure to a digital currency. The country features one of the most cashless economies in the world.

Per Bolund, Sweden’s financial markets minister, reportedly said that the government expects to complete the digital currency review by the end of November 2022. Anna Kinberg Batra, a former chairwoman at the finance committee Sweden’s central bank Riksbank, would lead the initiative.

Bolund emphasized that it is crucial to ensure that the digital payment system in the country the functions in a safe way, and is “available to everybody.” “Depending on how a digital currency is designed and which technologies are used, it can have large consequences for the entire financial system,” the minister said.

Sweden has emerged as one of the major CBDC technology pioneers, announcing a pilot platform for a digital currency known as e-krona in late 2019. In order to build the platform, Sweden’s central bank partnered with Irish professional services company Accenture. The Riksbank launched its first e-krona pilots in February 2020, claiming that the testing will be in operation until February 2021.

In October 2020, Riksbank Governor Stefan expressed confidence that an e-krona should be issued by the central bank and recognized as legal tender. Last year, Stefan said that Sweden’s central bank cannot be the only institution to decide on the future of an e-krona implementation:

“Considering how economically important the issue is, the Riksbank cannot take the decision on its own as to whether an e-krona should be introduced and, if so, in what form. It is a decision that must have substantial political support […]”

Article produced by HELEN PARTZ

https://cointelegraph.com/news/sweden-is-studying-a-potential-transition-to-the-e-krona-cbdc

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Gold Backed Tokens: What They Are And How To Use Them

Gold Backed Tokens: What They Are And How To Use Them

Gold Backed Tokens: What They Are And How To Use Them

By Adrian Barkley

Due to the short supply of physical gold, in combination with rampant demand for alternative stores of value, gold-backed tokens have become a go-to hedge for those looking to move their money into an uncorrelated asset class without needing to deal with the hassles of storing or insuring physical gold. 

As a result of this surge in demand, a variety of prominent gold-backed tokens have been launched in recent months, and Uniswap is quickly being positioned as the battleground for gold-backed token dominance. 

 

What Is A Gold-Backed Token?

The term gold-backed tokens is used to describe the rapidly growing segment of cryptocurrencies that are backed by physical gold. 

Depending on the specific gold-backed token, each unit will generally either be backed with either 1g or 1oz of investment-grade gold. Each CACHE Gold token, for example, represents 1g of pure gold, while each Tether Gold is backed by 1 troy oz of the precious metal. 

Being backed by physical gold, these tokens tend to have a market value closely related to the spot price of gold. Since they can generally be freely redeemed for the underlying gold, it makes sense that holders would be unwilling to sell their tokens at too far below gold spot rates, since they could always just redeem their tokens and get 100% of the spot price. 

Perhaps unsurprisingly, with governments amount the world taking on record debts, and faith in traditional money faltering, most gold-backed tokens have witnessed a striking increase in value in recent months, since gold itself recently touched its highest ever value. 

As a result, all popular gold-backed tokens are now up close to 20% since the start of the year and all are more valuable now than they were when first launched. The most popular have also seen their trading volume skyrocket.

 

But They’re Not All Equal 

With gold-backed tokens now more popular than ever, demand for gold-backed tokens on exchanges has reached record heights sending transaction volumes soaring — with CACHE Gold and PAX Gold currently leading the way by a country mile. 

But although Bittrex and Binance are among the most dominant exchanges for trading gold-backed tokens, the convenience of Uniswap and its permissionless nature has begun to see it emerge as an incredibly liquid alternative to centralized platforms. 

CACHE Gold currently holds the position of the most liquid token on the platform — with more buy and sell-side liquidity than all other gold-backed tokens combined. 

With such a large amount of liquidity, CGT can be traded with minimal slippage on Uniswap, whereas other gold-backed tokens may suffer from potentially significant slippage. As of writing, the expected slippage for a $10,000 order on Uniswap is just 0.23% for CACHE Gold, 0.59% for PAX Gold, and a whopping 6.72% on Tether Gold.

 

Why The Discrepancy?

With all gold-backed tokens essentially offering the same major characteristics, e.g. decentralization, backed by gold, ease of use, etc., why is it that CACHE Gold (CGT) and PAX Gold (PAXG) have seen far better uptake than other tokens?

Arguably the main reason is the transparency of these two platforms. CACHE Gold (CGT) is one of the few gold-backed tokens that has had its smart contract audited by a third-party security firm — with ZeroTrust finding no critical or major vulnerabilities in its code. Beyond this, CGT is the only gold-backed token with a publicly accessible gold explorer, providing real-time information about the amount of gold stored in its vaults, and even its history and current location — ensuring users can always be sure CGT is 100% backed by gold.

PAX Gold, on the other hand, offers a simple gold lookup tool, which allows users to easily look up the gold that is allocated to each PAXG token, help to easily provide it is 100% solvent. 

Beyond this, CGT and PAXG have by far the most transparent redemption processes — ensuring users are fully aware of the process involved in actually redeeming their tokens for physical gold should the need arise. While CACHE Gold also boasts the lowest minimum redemption amount, at just 100 tokens (100 grams), compared to 430 ounces for most other gold-backed tokens (PAXG included). 

Article produced by Adrian Barkley

https://cryptodaily.co.uk/2020/12/gold-backed-tokens-what-they-are-and-how-to-use-them

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Coinbase-Backed Bitso Raises 62M to Expand Crypto Footprint in Brazil

Coinbase-Backed Bitso Raises $62M to Expand Crypto Footprint in Brazil

Coinbase-Backed Bitso Raises $62M to Expand Crypto Footprint in Brazil

By Coindesk

Latin American crypto exchange Bitso has raised a whopping $62 million funding round, the largest in the region for a digital asset firm.

Announced Wednesday, Mexico City-based Bitso’s Series B also heralded the first investment in crypto by renowned fintech VC firms QED Investors and Kaszek Ventures, which led the fundraise. Also involved in the round were existing shareholders Coinbase and Pantera Capital.

Nigel Morris, co-founder and managing partner of QED Investors, and Nicolas Szekasy, co-founder and managing partner at Kaszek Ventures, are joining the board of Bitso.

“We have been talking to QED and Kaszek for a really long time and they have been interested in crypto but hadn’t pulled the trigger until now,” said Daniel Vogel, CEO and co-founder of Bitso.

“I think the conviction from them is because we are really focused on making this technology accessible to the people of Latin America.”

The spectre of deflationary currencies has driven Bitso user numbers to over a million, and a crypto market share of 97% in Mexico and 77% in Argentina, Vogel said. 

A steady expansion of real-world use cases is behind the VC interest, he said, such as remittances, where crypto enjoys a share of the $36-billion-a-year U.S.-Mexico corridor.

“In the case of the U.S.-Mexico remittances, Bitso has processed over a billion dollars worth,” said Vogel. “That’s exciting because it’s the technology being put to use for the benefit of the consumers, more than just speculation.”

Bitso raised a (previously undisclosed) $15 million Series A round in October 2019, Vogel said, and currently employs about 200 staff.

The firm will use a portion of the latest fundraise to build out a Brazil-based operation, which was given a toe-hold launch earlier this year.

“Brazil is probably the most exciting place to be building out how we envision crypto-powered financial products for the end customer,” Vogel said. “So there’s going to be a very strong commitment from Bitso in Brazil where we aim to triple the size the team over the next 12 months.”

Article produced by Coindesk

https://businessblockchainhq.com/business-blockchain-news/coinbase-backed-bitso-raises-62m-to-expand-crypto-footprint-in-brazil/

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Pro-Blockchain Congressmen Ask SEC for Clarity on Crypto Custody

Pro-Blockchain Congressmen Ask SEC for Clarity on Crypto Custody

Pro-Blockchain Congressmen Ask SEC for Clarity on Crypto Custody

By Will Gottsegen

A bipartisan group of representatives has written a letter to the SEC emphasizing “the need for regulated safekeeping services for cryptographic assets.”

In brief

  • Nine members of the House of Representatives have signed a letter to SEC Chairman Jay Clayton.
  • According to the letter, a lack of guidance from the SEC has left would-be crypto broker-dealers in a state of limbo.
  • It asks for clarity around broker-dealer applications to FINRA.

A group of nine congressmen has signed a letter addressed to SEC Chairman Jay Clayton, asking for more clarity around broker-dealer applications for companies in the crypto space.

The signatories include Tom Emmer (R-MN-6), Bill Foster (D-IL-11), David Schweikert (R-AZ-6), and Darren Soto (D-FL-9), who co-chair the Congressional Blockchain Caucus, along with Warren Davidson (R-OH-8), Ted Budd (R-NC-13), Ralph Norman (R-SC-5), and Ro Khanna (D-CA-17), who are members. Dan Crenshaw (R-TX-2) was the only non-member to sign the letter.

According to a press release from Tom Emmer's office, the congressmen request three things:

"First, issue a formal clarification that banks may act as good control locations for the custody of digital securities. Second, advise FINRA on the specific criteria that must be met for broker-dealers to custody digital securities for their customers and for their own account. Third, instruct FINRA to approve broker-dealer applications that meet those requirements."

In order for a company to issue securities aimed at US investors, either conventional (like stocks) or digital (like blockchain-based tokens offered via an ICO), it has to register with the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization authorized by the government to grant official broker-dealer status.

Once a company becomes a broker-dealer in the eyes of FINRA, it can begin buying and selling securities for clients and/or itself, as well as hold digital securities.

@BrianBrooksOCC and the @USOCC have provided clarity for banks to custody crypto – now it’s @SEC_News’ turn. Today, I led a letter with 8 of my colleagues urging the SEC and @FINRA to issue guidance and approve broker-dealer applications to custody digital securities. pic.twitter.com/ZTb4UI13L3

— Tom Emmer (@RepTomEmmer) December 9, 2020

But FINRA may be unsure what to do with cryptocurrency firms.

The letter to Clayton asserts that “in the absence of guidance from the SEC, FINRA has not outright denied any broker-dealer applications that involve the custody of digital securities, which would render the applications eligible for appeal.” Instead, the representatives claim, those applications have been in a state of limbo.

As evidence, they point out that the SEC and FINRA issued a joint statement in July 2019 acknowledging that more and more companies were looking to hold digital securities, but that neither organization has done much about it in the way of providing guidance.

The congressmen are asking that the SEC help FINRA guide qualifying companies toward becoming approved broker-dealers and that the SEC explicitly confirm that banks can hold digital securities—something the Office of the Comptroller of the Currency, an office of the US Treasury that’s currently being run by former Coinbase executive Brian Brooks, has already suggested.

Article produced by Will Gottsegen

https://decrypt.co/50966/sec-letter-broker-dealer

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

Ripple Ink Yet Another Partnership With Novatti To Expand Growth In Southeast Asia

Ripple Ink Yet Another Partnership With Novatti To Expand Growth In Southeast Asia

Ripple Ink Yet Another Partnership With Novatti To Expand Growth In Southeast Asia

By Adrian Barkley

  • Over the years, the San Francisco-based blockchain company ripple has made several partnerships with many different companies from all over the world.
  • This week, the company started yet another partnership with the leading digital banking and payments company Novatti.

 

Over the years, the San Francisco-based blockchain company ripple has made several partnerships with many different companies from all over the world.

This week, the company started yet another partnership with the leading digital banking and payments company Novatti. The reason for this collaboration is to track growth in Southeast Asia.

According to the announcement, this partnership will help customers of Novatti to access the services that Ripple provides.

When it comes to the remittance industry, ripple is 100% the leader of the sector. By using distributed ledger technology, cheap, fast and easy payments can be made and are being utilised by more than 300 financial service companies globally.

At first, this new collaboration will help with facilitating cross-border payments from Australia to Southeast Asia. 

As the top digital payments business in Australia, Novatti provides numerous services including fintech and automated billing. Through the services, companies are allowed to have fast and secure payment processing.

At some time in the future, Novatti could be processing cross-border payments from other regions into Australia as well. Peter Crook, managing director of Novatti has commented on the new partnership saying:

“Novatti is incredibly excited to partner with Ripple, who are rapidly disrupting the global payments industry.

This partnership will further increase Novatti’s competitiveness and provide our customers with access to new, innovative payment solutions.

In particular, we look forward to working with Ripple to provide our customers with access to their exciting alternative financing solutions, so that our customers can free-up capital to focus on growing their businesses.” 

Article produced by Adrian Barkley

https://cryptodaily.co.uk/2020/12/ripple-ink-yet-another-partnership-with-novatti-to-expand-growth-in-southeast

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur