Digital Asset Custodian Koine Awarded Electronic Money Institution (EMI) License By FCA

Financial Conduct Authority (FCA) has awarded and Electronic Money Institution (EMI) certificate to crypto assets custodian, Koine, Financial Magnates reports.

Koine announced on Thursday that it has secured a licence to issue electronic money from FCA. The licence means that Koine can now offer real time e-money payment services to their increasing institutional clientele. Koine also revealed that plans are underway to seek licensure in various financial services locations.

Koine’s chairman Hugh L. Hugh praised the authorization stating that the EMI license will help the firm to move with speed and invest in the necessary infrastructure that will enhance institutional participation within the digital assets market.

Commenting on the development, Hugh L. Hughes, chairman and CEO of Koine, said,

“Market reaction to Koine’s ultra-secure scalable institutional class solution for custody and settlement, has been immensely favorable, and with our EMI authorization now issued by the FCA, we are rapidly moving to implement the market infrastructure necessary to support institutional participation in the digital assets marketplace.”

Currently, Koine enjoys a wide clientele of more than 40 ranging from families to institutions as well as funds. The firm offers custodial as well as real time settlement services in fiat as well as digital assets.

The company has its headquarters in London but its crypto assets custody services are not covered by the UK regulation framework. In this regard, the new license is not authorization of the firm’s digital asset custody business.

He said,

“e-Money authorization should not be read as authorization of Koine’s transformative custody and settlement model for digital assets.”

Hughes explained that the recognition by the FCA of the control procedures that the firm has enacted, irrespective of their views regarding the crypto space, is a testament that London is still an attractive base for crypto-based firms alongside the conventional financial companies. He explained that all that is needed for the crypto-based firms is to explain the controls put in place to satisfy the regulator’s standards and guidelines.

Hughes commented further,

“The FCA’s recognition of the controls and processes that we have put in place for our EMI authorization, notwithstanding their concerns regarding the digital markets, shows that London can continue to attract financial institutions in the digital markets, alongside traditional capital markets, as long as those institutions can show that they have appropriate governance to address the regulator’s requirements.”

Started in 2017, Koine has continued to come up with unique solutions which makes it stand out among its rivals who offer hot wallet and cold storage services. The firm offers manual transfers, offering advanced security for clients’ assets and immediate settlement as well as withdrawals.

The company has been monitoring the best practices exercised by the conventional custodians and has been able to withstand the test of time and is now among one of the largest digital assets custodians.

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Author: Joseph Kibe

Nexo Crypto Lender Reduces its Rates on Immediate Credit Lines

The crypto lending institution recently announced that it has reduced interest rates on the prompt crypto credit lines.

Cheapest Rates on Blockchain Platform

On Oct. 22, a press release was published where Nexo announced they were reducing the interest rates on their credit line service. The reason why they came up with that objective is that the crypto lending company has secured cost-efficient and long-term financing. The immediate lending institution affirms that they are the only company that offers the lowest interest rates in blockchain’s ecosystem.

The crypto lines interest rates are reported to start at 5.9% and do not have any minimum repayment requirements. There are also no credit checks to go through. The loan coins and the service is available in over 200 jurisdictions.

Nexo enables digital asset holders to choose against a wide variety of digital coins like Ether, Bitcoin, Litecoin, Ripple, and other assets. The ownership of the borrowers’ assets does not change; they remain the sole owners.

Nexo reported in August that they had paid their users around $2,409,574.87 in dividends. That was an annual dividend yield of about 12.73%. The lending platform is estimated to have more than 250,000 users. Therefore, their dividend yield is reportedly higher than any other dividend-paying stock that is listed on the S&P 500 market index.

In August, Nexo unleashed a MasterCard that was branded cryptocurrency credit card. It is said that it is the first card on earth that allows crypto users to spend their cryptocurrency value without actually spending it.

Celsius Network: Biggest Competitor

According to Cointelegraph, a cryptocurrency borrowing and lending platform Celsius Network, Nexo’s chief rival, completed more than $2 billion in crypto loan origination. They have also received $300 million in deposits for the past 12 months.

Celsius has finalized more than 160,000 loan trades and has dispersed interest payments amounting to $3 million. According to the company, they are the number one growing lending institution in the world.

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Author: Daniel W

Sberbank Bank Buys $15M In Debt In Pilot From Trafigura Trading Giant Using Hyperledger’s Fabric

Sberbank, known as the largest banking institution in Russia, recently used blockchain technology to buy around $15 million USD worth of debt in accounts receivable from Trafigura, a commodity trader based in Singapore.

This transaction was made using the technology of Hyperledger Fabric platform. The announcement was made this week by the bank and a spokesperson confirmed that this tech provides several advantages for companies that want to trade internationally.

With the private collections feature of the technology, the company was able to keep a part of the data confidential between some of the participants. The system use smart contracts written with a Scala programming language and the Aurelia framework. SberCloud, the cloud solution of the bank, was also used at the time.

According to Alexander Vedyakhin, the deputy chairman of the Russian bank, the blockchain technology was very helpful in making the document flow considerably more efficient than it was before. Something that could take up to a day to do before is now done in an hour.

He also confirmed that the pilot project was very useful because all the steps were fully recorded, so the process could be followed and reviewed all along the way.

This is yet another example of how blockchain has been useful for the financial market. The spokesperson of the bank confirmed that this technology represents an ongoing evolution in the market and that more advanced solutions are set to be used soon.

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Author: Gabriel Machado

Largest Bank of Africa, Standard Bank, Becomes Newest Member of The Marco Polo Network

Standard Bank, known as the largest banking institution in the African continent, has recently decided to join forces with the Marco Polo Network, a blockchain-based financial company. Now, the bank will start to create financial solutions together with the blockchain company.

According to the press release, several other important institutions are also partners of Marco Polo such as the Dutch ING bank and the French BNP. Standard Bank was the first African bank ever to be a part of the group.

At the moment, the Marco Polo Network has companies from all over the world. Besides the companies cited to so far, there are the Danske Bank, Commerzbank, Bradesco, Anglo-Gulf Trade Bank, NatWest, Helaba, Alfa Bank, S-Servicepartner, RBI and Bayern LB. R3’s Corda blockchain is the underlying technology used by them.

The main goal of the network is the development of blockchain solutions that can be used in the banking sector. The group offers broker dealer solutions, multi-currency transactions and other financial services.

This does not mean that the Marco Polo Network has not suffered any with any issues. R3, especially, had several disagreements about how the group was using its technology. This caused a big delay in the project, according to sources. Some of the companies involved in the initiative are already doing transactions on the Marco Polo trading platform, however.

It looks like this partnership might affect the Standard Bank very positively and Africa may reap some of the benefits as well.

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Author: Gabriel Machado

Australia’s Largest Bank ‘CommBank’ To Use Blockchain-Based BioTokens To Help Environment

The Commonwealth Bank of Australia, known as the largest banking institution in the country, has been using the blockchain technology to tackle the issues of investing in sustainable development.

Today, the bank has announced that it is working on something that will be called “BioTokens”. These new crypto tokens, which are being developed in a partnership with BioDiversity Solutions Australia, a company focused on tech and sustainability, will be used as biodiversity credits.

Biodiversity credits were initially created by a government project back in 2017. The idea was to help companies that were engaged in sustainable development. When companies develop systems that help to protect the environment, they will receive rewards as BioTokens.

According to Rod Barnaby, from BioDiversity Solutions, the new tokens will be a part of a digital marketplace platform. This way, the tokens can be an alternative source of income for the companies, which will reward them for their efforts in being eco-friendly.

The head of experimentation at the Commonwealth Bank, Sophie Gilder, affirmed that the platform will work as a way to turn the project into something easily accessible and transparent. According to her, the BioTokens will be very complex assets, but they will provide a very streamlined experience for the users.

At the moment, the two institutions are seeking new partners for this project. With the help of these future partners, they hope to finally make the commercial launch of the platform and to create more use cases for it as well.

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Author: Gabriel Machado

New Zealand’s ABS Bank To Invest In Local TradeWindow Blockchain Platform

The ABS Bank, a banking institution from New Zealand that is owned by the Commonwealth Bank of Australia, has recently invested in a local company called TradeWindow. The company uses the blockchain technology and it is focused on creating solutions for supply chains.

TradeWindow’s CEO AJ Smith affirmed that this was one of the first times in which a bank has made a direct investment in this kind of company in the country. This, the CEO believes, will allow the company to get even more clients and offer better services.

A manager at ASB called Nigel Annett also commented on the situation, affirming that the blockchain company has potential and that it can transform how international trade happens. Annett said that TradeWindow will allow the bank to operate in a much more efficient way than it did before.

TradeWindows’s technology was created in order to enable companies to create a single trading window for transactions that can be accessed by everyone that is a part of it. This connects companies and decreases the risk of fraud exponentially.

Also, all major documentation that may be needed on the platform can be uploaded to this window and digitally exchanged. This can eliminate costs and save a lot of time, bring more efficiency to the clients of the company, especially if they constantly make international trades.

Recently, New Zealand is becoming more friendly to Bitcoin and the blockchain technology. Not only the country is set to change how crypto taxes work, but many companies are finally being able to finally get mainstream support.

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Author: Bitcoin Exchange Guide News Team