On Monday

Specialist financial instruments exchange, Drive, has announced they are now offering institutional clients access to spot prices, CFDs and Futures in a selection of Cryptocurrencies.

This ought to help provide greater liquidity and acceptance among institutional investors as it enables them to easily go long or short of a variety of Cryptocurrencies via a platform that they are already using, so gain exposure to Digital Assets by osmosis.

The pronouncement from SEC Chair Clayton has confirmed that certain cryptocurrencies, like Ethereum and Bitcoin, are not securities and has provided the clarity many have been seeking. Which ought to assist lawyers, insurance underwriters and compliance departments at asset management firms as to where and how these Digital Assets can be used.

Meanwhile, back in main street in the US, or as some would say in the UK for ‘Joe Public’, of those that own Digital Assets like Bitcoin less than 40% said they were happy to use Cryptos for payments. So while adoption of Digital Assets is increasing there is still a long way to go before we see cryptos replacing cash…

Financial Services
Digital Assets

Last Wednesday

BlockFi, who raised over $54million last year has launched a high-interest account paying 6% p.a. if they hold your Bitcoin or Ethereum assets.

The reason they can pay such high-interest rates is because they lend out your Crypto to other institutions but more importantly, your Digital Assets are held by a custodian independent of BlockFi called Gemini Trust Company. Gemini was co-founded by Cameron and Tyler Winklevoss and is regulated by the New York Department of Financial Services.

This new way to hold Cryptocurrencies is another example of how the traditional and the Digital worlds are converging, as BlockFi are offering in effect an instant-access, high-interest account to depositors while providing institutional asset lending facilities. Because the transactions are stored on a Blockchain there are fewer intermediaries involved, it is secured using military-grade security and not reliant on one company’s server/computer as the records will be distributed thus reducing concerns over disaster recovery.

Financial Services