5 Years Ago

London Stock Exchange invests and joins the board of a FinTech firm tokenising equites and bonds

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Nivaura has secured $20m of fresh capital, with investors including The London Stock Exchange (LSE), Santander and the law firm Allen and Overy.

LSE will also have one of their staff joining the Nivaura board.
Nivaura was the first company in the world in 2017 to issue a bond for a client using a Blockchain while in the UK FCA Sandbox and they claim that the time needed to issue bonds could be reduced by 60% by using Blockchain technology. They have recently been followed by BVVA in Spain who issued a bond using Blockchain technology to raise $160m.
If it proves to be so much cheaper to access the debt markets using Blockchains then bonds could become an option for SMEs to raise capital, which in turn could be competition for the Peer 2 Peer lenders…

#FrontierInsights
Blockchain
Fintech
https://www.forbes.com/sites/michaeldelcastillo...3ca6596e46

New York bank to offer Crypto banking facilities in Bermuda

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Signature bank of New York has announced that it is now offering bank accounts for businesses based in Bermuda that deal in Digital Assets.

There are believed to be over 60 companies that initially this will be of great assistance to, as despite the Bermuda government changing it’s law no locally based bank offer accounts in the Crypto sector. However, Signature bank claims that they are signing up companies that are also not involved with Cryptos.

The lack of banking facilities is a major hurdle facing businesses that deal in Digital Assets globally as it is extremely difficult to get a bank account in many jurisdictions around the world.

In the UK Clearbank  which is the first bank in over 250 years to be granted clearing bank status, is one of the is one of the few banks to offer bank accounts to firms engaged in Digital Assets but the company needs to be FCA regulated or in the process of applying to the FCA to be accepted by Clearbank.

#FrontierInsights
Banking
Blockchain
Crypto
Digital Currency
https://coinfomania.com/signature-bank-services...n-bermuda/

EOS looks to target 300Million Taptalk users

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People question the scalability of Blockchains and different commercial uses cases.

Well, the announcement that EOS, the fourth biggest Cryptocurrency, is going to be used by Taptalk (a social messaging and chat App similar to Reddit) prove Blockchain is being used at scale to drive new business services. Taptalk is going to use the EOS Blockchain to offer rewards “Gold Points” although at this stage they have said they are not going to list the GoldPoints on an exchange.

Winter Wong, the CEO of Tapatalk, said in a press statement “ they were looking to promote microeconomics on forum platforms, calling blockchain integration a “natural step.” He added: “We see many exciting ways this technology will deliver valuable monetization and reward opportunities for forum communities. We are proud to support forum owners in growing prosperous microeconomies in a trusted environment.”

The use of tokens to attract attention and or reward loyalty is likely to be a substantial and growing market but will raise some interesting regulatory issues, as would they be subject to security regulations even if the tokens can be exchanged for goods and services? Currently, your Air Miles when you fly or your American Express loyalty points are not regulated by financial services agencies, but would these loyalty points become regulated if they were listed exchanges to allow greater interoperability?

#FrontierInsights
Blockchain
Cryptocurrency
https://zycrypto.com/tapatalk-takes-eos-to-the-...-currency/

Blockchain technology has the potential to WIPE Luxembourg off the map of the fund distribution and administration market

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This rather punchy heading was in a report from Deloitte when they analysed the potential impact Blockchain could have on the second largest mutual fund market in the world.

The ability for Blockchain’s to increase transparency reduce the number of intermediaries - transfer agencies, custodians, settlement agents, administrators, fund accounting etc to reduce the cost of managing your savings and pension funds.

It is rather ironic that regulators like SEC and governments have been very cautious about using Blockchain and Cryptocurrencies due to the risks that they may present. However, it could be compliance that drives greater adoption, as they realize the cost savings, improved resilience (as data is not held in one location), greater transparency and being able to treat customers fairly. Digital assets that are able to track who owns what in Real Time and to be able to the calculate dividends, interest payments and rental income entitlement based on the number of minutes one holds an investment, not to mention being able to trade 24/7 are all highly attractive advantages that Blockchain technology and Digital Assets offer the mutual fund industry.

Indeed one survey last year claimed costs savings could be $1.9Billion globally, having index funds that automatically adjust and manage themselves, having funds that manage themselves using Smart Contracts and funds that could be priced and traded continually are just some of the changes that are coming...

#FrontierInsights
Blockchain
Fund Market
https://www2.deloitte.com/content/dam/Deloitte/...bution.pdf

University of Michigan invests in Andreesen Horowitz Crypto fund

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Yet another university is investing capital into the Crypto sector as Michigan, as part of it’s $12Billion endowment fund decides to invest into the legendary Silicon Valley manager Andreesen Horowitiz.

Last autumn Harvard University disclosed it had invested  into a Cryptocurrency fund following Stanford and MIT.

The Horowitz fund targets Crypto related technology firms as opposed to just buying pure Crypto currency funds. With major highly respected universities such as these investing in Digital Asset this clearly demonstrates how traditional investors are increasingly looking at this new asset class.

#FrontierInsights
Cryptocurrency
Investing
https://www.financemagnates.com/cryptocurrency/...ypto-fund/

South America’s biggest bank issues a real Estate backed Digital Asset

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Banco BTG Pactual is to launch a Digital Asset linked to distressed Real Estate and aims to raise $15m.

BTG will pay investors a share of the rental income from the property and expects the returns to be approximately 15% p.a. BTG claim they decided to launch the token as Crypto investors are looking for high-risk investments. The bank is going to provide liquidity using their own capital and at $15m is a  sign this large Brazilian bank is just putting a toe in the water to test the appetite for this type of offer.

#FrontierInsights
Banking
Crypto
https://www.bloomberg.com/news/articles/2019-02...cked-token

Maltese Digital Asset trading platform reports 200% increase in volume

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OKEX, based in Malta, is seeing strong growth in Crypto derivate trades as they do more business with institutions.

OKEX offers risk management tools for those wish to trade the crypto market so one potentially can avoid losses as a result of extreme volatility of prices by taking positions in various crypto derivatives.

However, with Cryptos prices falling as well as rising at short notice coupled with up to 100x leverage these services surely are for organisations and traders who are fully aware of the risks and potential profits in this evolving asset class!

#FrontierInsights
Cryptocurrency
Risk Management
https://www.institutionalassetmanager.co.uk/201...two-months

Evolution of the Digital Asset Market

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People often are frustrated at the speed of developments in the Digital Asset sector with a thirst for more clarity from tax offices, governments and regulators.

However, the market has and continues to mature relatively quickly as ICOs are giving rise to STOs and exchanges and custody services are being created.

There are now an incredible 178 Crypto exchanges globally, so start looking out for consolidation and mergers of exchanges. Asia now dominates Crypto trading while Bitcoin volumes continue to rise despite the fall in its price. This review of Digital Assets from Anton who has a PHD in Blockchain from Berkeley in the USA is worth a read.

#FrontierInsights
Digital Asset
ICOs
STOs
https://blockchainatberkeley.blog/the-evolution...f4c5de176c

Blockchain regulatory 2019 trends in 12 jurisdictions

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Global Blockchain Business Council (GBBC), found 19% of the institutions they interviewed claim they will be investing in Digital Assets by 2021.

Sandra Ro, CEO of the GBBC, said that “by 2027, crypto and Digital Assets would consist of at least 10 percent of the global GDP”. Interestingly 40% of companies surveyed consider the invention of blockchain technology as the most important technological innovation since the invention of the internet. Although it also discovered over 63% of executives believe that a lack of understanding of what blockchain technology can offer is THE feature holding back wider adoption.

#FrontierInsights
Digital Assets
Technology
https://uploads-ssl.webflow.com/596d1089592fec0...%20(1).pdf

KPMG continues to embrace Blockchain

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KPMG has been active in the Blockchain sector for a while, recently publishing a report on the three big areas for institutions to explore blockchain and now have unveiled a tie-up with software security firm Guardtime.

The Blockchain platform that Guardtime have developed is currently being used by the Dutch government, the mobile telecom firm Virizon, China Food Cloud and other organisations around the world. The alliance will enable KPMG and Guardtime to help companies address some of the complex challenges in supply chain, data rights management, compliance procurement, finance, identity management, cloud audit, and security.

"Our alliance with Guardtime gives clients access to a secure digital platform," said Arun Ghosh, KPMG's National Blockchain leader. "KPMG's deep business and technical experience along with Guardtime's blockchain platform drives business transformation in areas that are encumbered with manual processes and where data accuracy, trust, and security are paramount."

So, KPMG is looking to offer in strategic advice on how Blockchain technology can be used to solve day to day challenges in a highly commercial manner so generating revenue for implementing Blockchain in what could be seen as a “plug and play solution”.

#FrontierInsights
Blockchain
Software Development
https://economia.icaew.com/news/february-2019/k...specialist

Texans to Pay for Electricity Using Cryptos

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Gridplus is going to enable people who live in Texas to be able to pay for their electricity in Crypto currencies which in itself it nothing remarkable.

What is interesting is that they are going to allow customers to benefit from buying electricity when it is cheap and provided you have the right tech you could turn off devices such are swimming pool pumps or air conditioning units when demand spikes and electricity prices are high. Customers will be able to pay in real time presumably using Smart Contracts.

Gridplus is a project backed by  ConsenSys, which was founded by Joseph Lubin who was one of the key figures behind Ethereum, so no doubt if this proves successful look out for more projects like this in the energy sector elsewhere!

#FrontierInsights
Cryptocurrency
Energy
https://blog.gridplus.io/gridplus-is-live-in-te...0c1c60e569

Elon Musk “Bitcoin is better than paper money whose days are numbered”

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Musk this week while being interviewed claimed “Bitcoin’s structure is quite brilliant, but it would not be a good use of Tesla resources to get involved in crypto”

Musk knows a thing or two about money transfers, having been a leading light at PayPal, so he is better placed than most to understand the costs and limitations that traditional payments systems face. Musk also said, “Paper money is going away and crypto is a much better value for a transfer of value than pieces of paper, but, it's very energy intensive to create bitcoin at this point."

Elon Musk, while controversial, has a keen eye for disrupting industries: look at what he has done with solar power, launching satellites and of course electric cars, so it is unlikely to ignore Blockchain technology...

#FrontierInsights
Bitcoin
Blockchain
Crypto
https://www.youtube.com/watch?v=fKeK68wK0UQ

Frontier News & Insights

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Staying on top of the world of blockchain, DLT and other frontier technologies is far from easy.

That's why we're delighted to be launching Frontier News & Insights, which will be available to full members - and to our entire network, for now.

We've made it really easy to join our network - you don't need a card and there's no cost to you - so if you haven't already, do join now so we can continue to bring you these valuable insights week on week. Click BECOME A MEMBER above.

For now, to see this weeks issue Frontier News & Insights click here.

Blockchain Regulatory 2019 Trends in 12 Jurisdictions

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Global Blockchain Business Council (GBBC), found 19% of the institutions they interviewed claim they will be investing in Digital Assets by 2021. 

Sandra Ro, CEO of the GBBC, said that “by 2027, crypto and Digital Assets would consist of at least 10 percent of the global GDP”. Interestingly 40% of companies surveyed consider the invention of blockchain technology as the most important technological innovation since the invention of the internet. Although it also discovered over 63% of executives believe that a lack of understanding of what blockchain technology can offer is THE feature holding back wider adoption.

#FrontierInsights
Blockchain
Regulatory
Digital Assets
https://uploads-ssl.webflow.com/596d1089592fec0...%20(1).pdf

The first Security Token in Germany is a Bond

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Momentum for the issuing of Security Tokens is gathering pace in Europe with a Blockchain powered company called Bitbond, announcing it now has regulatory approval from BaFin (German Federal Financial Supervisory Authority) to launch a bond to raise up to Euros 100million using the Stellar Blockchain.

In contrast to ICOs, the securities prospectus for token-based bonds gives investors transparency and comprehensively documents their rights and the terms of the offer. The bond is subject to BaFin’s regulatory control. Bitbond has been approved as an asset broker under the German Banking Act for its Blockchain-based lending business and is the first financial services institution of this type to be supervised by BaFin.

We have already seen BBVA the Spanish bank using Blockchain technology to issue a bond, as have NIVURA in London.

It is thought that issuing bonds on a Blockchain could reduce the issue costs by 50% to 70% so potentially small to medium size companies could start using the bonds to raise capital on Blockchains.

#FrontierInsights
Blockchain
ICO
Security Token
https://coingape.com/bitbond-becomes-first-regu...tification