Southeast Asia’s Largest Bank, DBS Starts Offering Trust Services for Cryptocurrencies

Southeast Asia’s Largest Bank, DBS Starts Offering Trust Services for Cryptocurrencies

Meanwhile, the bank’s Digital Exchange did volume between $30 million to $40 million and held $80 million in assets under custody in Q1 2021.

Singapore-based DBS Bank said on Friday that its private banking arm is now officially offering wealth succession planning for cryptocurrencies.

This latest move by Southeast Asia’s largest bank follows the launch of its crypto exchange, DBS Digital Exchange, for institutional and accredited investors late last year. In Q1, the digital exchange held $80 million in assets under custody with trading volume up 10x to $30 million to $40 million.

DBS’s digital exchange has 120 clients and “a robust pipeline awaiting onboarding.” The bank said the exchange is working on conducting its first security token offering and expanding the operating hours from Asia time zones to round the clock to match the crypto sector.

Now, the bank is helping its rich clients, including the crypto asset class, in their succession plans.

DBS said its subsidiary is offering private banking client support for investing, custody, and managing crypto assets, including Bitcoin (BTC), Ethereum (ETH), Bitcoin cash (BCH), and XRP. BTC 0.35% Bitcoin / USD BTCUSD $ 49,855.49
$174.490.35%
Volume 55.74 b Change $174.49 Open $49,855.49 Circulating 18.71 m Market Cap 932.81 b
5 h City of Williston North Dakota Adopts Crypto Payments for Utility Services 6 h Diginex’s Crypto Custodial Arm Digivault Bags Approval From UK FCA 6 h Square CFO: “No Plans” to Buy More Bitcoin At This Time After Losing $20M Due to Price Drop
ETH 9.56% Ethereum / USD ETHUSD $ 4,075.95
$389.669.56%
Volume 48.17 b Change $389.66 Open $4,075.95 Circulating 115.88 m Market Cap 472.3 b
6 h Diginex’s Crypto Custodial Arm Digivault Bags Approval From UK FCA 6 h Square CFO: “No Plans” to Buy More Bitcoin At This Time After Losing $20M Due to Price Drop 8 h Ether Flippining Bitcoin a Real Possibility But What’s the Caveat
BCH 3.75% Bitcoin Cash / USD BCHUSD $ 1,298.66
$48.703.75%
Volume 5.51 b Change $48.70 Open $1,298.66 Circulating 18.74 m Market Cap 24.33 b
9 h Southeast Asia’s Largest Bank, DBS Starts Offering Trust Services for Cryptocurrencies 3 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report 1 w Ethereum Fork ETC Trading 12% Higher on Coinbase, CAKE Wicks Down Over 13.5% on Binance
XRP 2.81% XRP / USD XRPUSD $ 1.40
$0.042.81%
Volume 7.57 b Change $0.04 Open $1.40 Circulating 35.11 b Market Cap 49.21 b
9 h Southeast Asia’s Largest Bank, DBS Starts Offering Trust Services for Cryptocurrencies 1 d MoneyGram Teams Up With Coinme to Make It Easier to Buy Bitcoin and Cash Out In The US 3 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report
Lee Woon Shiu, regional head of family office, wealth planning, and insurance solutions at DBS Private Bank, said in a statement,

“International regulations and protocols are still nascent in the digital asset space, which could give rise to complications or unnecessary confusion if proper measures are not in place to prevent them.”

Read Original/a>
Author: AnTy

ING Report: How Blockchain & DeFi Will Change The Financial Landscape

ING Report: How Blockchain & DeFi Will Change The Financial Landscape

Multinational banking services provider ING bank has lent its voice in the ongoing debate surrounding decentralized (DeFi) and centralized finance (CeFi).

In a detailed whitepaper published on its website, the Amsterdam-based financial institution expounded on the pros and cons surrounding DeFi and how centralized finance could help institute a new economic system.

Collaboration Between DeFi and CeFi Beneficial For Global Finance

The paper titled “Lessons Learned from Decentralized Finance (DeFi)” opens by admitting the radical change decentralized finance (DeFi) has brought into the financial space.

Noting that DeFi aims to replace intermediaries with automated digital smart contracts, ING argues that negative opinions surrounding the emerging technology paint it as a foe rather than an ally.

In the 22-paged document, the European financial powerhouse noted that CeFi could help address DeFi’s area of weakness, pointing out know-your-customer (KYC) protocol.

It concluded by saying that if both entities collaborate, this could see the best of both worlds coming together to birth a new financial order.

Speaking on the document, ING’s blockchain lead Herve Francois argues that DeFi could substantially be more disruptive for the finance sector than Bitcoin has been.

Decentralized finance (DeFi) follows on the back of Bitcoin’s decentralization ethos of 2008. This nascent industry has grown exponentially in the last four years, with the largest DeFi facilitator Ethereum, boasting over $76 billion worth of assets under management (AUM) single-handedly.

The booming crypto market has seen other decentralized protocols springing up, with many providing legacy-backed services for a fraction of the cost.

Legacy Institutions Could Help DeFi

Pointing to some of the key takeaways from its study of the DeFi ecosystem, ING noted that counterparty risk is replaced with technical risk in the purely digital form of financial services.

The paper highlighted eight key features of the DeFi ecosystem that makes it rise above the current financial system naming composability, flexibility, decentralization, accessibility, innovation, and three other points.

The borderlessness that comes naturally to DeFi is a major plus, given that conventional financial institutions spend so much time and resources complying with local laws of countries they branch out to.

However, ignoring anti-money laundering (AML) and KYC requirements were the weak feet of DeFi, and this is an important area centralized finance could come in.

Using DeFi lender Aave as a case study, ING said that this disruptive technology had more accuracy, transparency, and speed than its centralized counterparts. However, it agreed that the novelty of the protocol came with inherent technical risks.

Read Original/a>
Author: Jimmy Aki

Fidelity Launches Digital Asset Analytics Tool For Institutional Investors

Financial services firm Fidelity investment has launched a digital assets analytics platform for institutional investors.

Fidelity’s Sherlock To Guide Institutional Investors

Fidelity named the platform Sherlock, which is a digital assets analysis tool that will provide fundamental and technical analysis for fund managers and investors.

According to the firm, Sherlock will collate valuable pieces of information on the blockchain, market, social sentiment analysis, as well as industry news into a single portal.

The platform will also research crypto-assets relying on quality institutional data providers coupled with the provision of unique analytics to guide investors.

Fidelity’s Sherlock is expected to provide much-needed competition against existing solutions produced by companies like Messari.

In 2018, Messari launched a data solution service and had gained valuable recognition worldwide by integrating with Kaiko’s Rest API.

Other giant forces to be reckoned with in the provision of data and analytics are Dune Analytics, Glassnode, Skew, Coin Metrics, and Santiment.

Speaking on the new development, Kevin Vora, Vice president, Product Management, Fidelity Center for Applied Technology (FCAT), said Sherlock would deliver comprehensive data and deep analytics as clients will no longer face numerous irrelevant resources.

Fidelity Dominating the Crypto Space

Besides developing Sherlock to help institutional investors, Fidelity investment has been making significant contributions to the crypto space.

Earlier, Fidelity Charitable, the charitable arm of the mutual fund giant, reportedly raised $28 million in cryptocurrency donations.

The acceptance of cryptocurrencies as part of donations for the non-profit was a welcome development in the crypto space.

More importantly, the investment firm plans to launch its bitcoin exchange-traded fund (ETF) for digital assets and virtual currency, per Form S-1 filed with the Securities and Exchange Commission.

While SEC is yet to approve any firm to date, Fidelity might be feeling lucky due to its track record in the traditional finance space.

Given the prevalence of existing data and analytics solutions for institutional investors, observers will be eager to see if the newly introduced Sherlock solution by Fidelity investment will also turn things around.

Read Original/a>
Author: Jimmy Aki

JPMorgan Piloting Blockchain-based Payment Solution in Asia

American investment bank and financial services provider JPMorgan, on Monday, April 12, launched ‘Confirm,’ a blockchain solution to reduce the number of rejected or returned payments.

‘Confirm’ Validates Transactions In ‘Near Real-time’

Following the launch, the US bank is now test-running the blockchain solution with 12 banks in Taiwan. The financial institutions include CTBC Bank, Taiwan Cooperative Bank, and First Commercial Bank.

As part of the test run, the banks were required to transfer money to Indonesia, using JPMorgan’s clearing solution – ‘PayDirect.’

Disclosing this development to the investing public, the banks which were used as case studies, according to JPMorgan, were able to request and receive confirmation of beneficiaries’ account information in ‘near-real-time.’

According to the US banking giant, there are numerous risks attached to transaction failures in the blockchain market, some of which are -a heightened risk of fraud, increment in cost from payment returns, and poor customer experience because of delays in processing payments.

Why this solution is timely for digital asset holders

In the blockchain industry, transactions are mostly seamless as cryptocurrency transactions are often done without problems. But there are instances where unsuccessful and failed transactions are recorded. In situations where failed transactions occur, one of the most common reasons is ‘fees.’

It is pertinent to note that the fees asset holders input in their transactions is collected by miners, who are shouldered with the responsibility of confirming transactions on the network.

These fees are used to determine the priority of each transaction as far as blockchain is concerned. Meaning that the higher the fee, the higher the level of importance placed on a transaction, and vice-versa. So, if the price an asset holder includes is too low, there are chances that miners will not consider such a transaction worthwhile to validate. And the most common consequence of this is rejection.

While no data is accessible at press time to confirm the rate at which traders experience failure in their transactions, there are indications most of the transactions that suffered rejection were because of the injected fee. More so, when a low price is used during the period that a network is experiencing congestion, there is a likelihood that it will not be successful. Due to how the blockchain is designed, miners are the only ones that determine every transaction’s status.

However, with ‘Confirm,’ JPMorgan brings a solution aiming to reduce failed transactions and increase successful ones.

Through a secure peer-to-peer network in the blockchain industry, trading entities can request an account’s validation before payment initiation. They can also respond to requests for account owner and status or participate as both a requestor and a responder.

Read Original/a>
Author: Jimmy Aki

UK Tax Authority HMRC Updates Guidance on Crypto Taxation

Meanwhile, Britain’s financial services minister said the focus is on regulating stablecoins, and intervention in the wider crypto markets is “less immediately pressing.”

HM Revenue and Customs (HMRC), UK tax authority, published fresh guidance on the taxations of crypto assets, an update to late 2019 issued guidance that aims to provide clarity on the taxation of cryptocurrency assets.

the update involves the trading of tokens, conversion to fiat currency, mining transactions, and staking for both individuals and corporations.

According to the guidance, If a company or business is carrying out activities that involve tokens, they are liable to pay tax on them whether buying and selling them, exchanging them for other assets, mining, or providing goods or services in return for tokens.

When it comes to mining transactions, it will be a taxable trade based on a range of factors such as degree of activity, organization, risk, and commerciality.

“Staking” has been addressed as a type of mining “which weights the entitlement to newly forged tokens.” Yet again, the taxability of them depends on several factors like mining.

The guidance says, if the mining activity of the business does not amount to a trade, the pound sterling value of any crypto assets awarded for successful mining will be taxable as miscellaneous income subtracting the expenses.

Profits will be “calculated according to the relevant tax rules” if the activity does amount to a trade.

When it comes to individuals, HMRC says that “only in exceptional circumstances” would it expect “individuals to buy and sell exchange tokens with such frequency, level of organization and sophistication that the activity amounts to a financial trade in itself.”

If the miner, either business or individual, keeps the awarded assets, they may have to pay Capital Gains Tax when they dispose of them later.

Not the Pressing Concern

On Tuesday, Britain’s financial services minister said they would first focus on regulating stablecoins than the broader crypto market.

“We need to manage risks to competition,” John Glen told a City & Financial conference.

“There is the potential for some firms to swiftly achieve dominance and crowd out other players, due to their ability to scale and plug into existing online services.”

According to him, the case for intervention in the wider crypto markets is “less immediately pressing” while saying it is a “once-in-a-generation opportunity” to make “vast strides in the efficiency of financial services.”

Separately, Britain’s financial watchdog said imposing existing electronic money rules that authorize cashless payments on stablecoins won’t be suitable.

“The e-money regime isn’t a perfect match for crypto,” said Alex Roy, head of consumer distribution policy at the Financial Conduct Authority, at the same conference.

In other news, this week, the Iowa House of Representatives also passed a bill to legally recognize smart contracts. Democratic Representative Steve Hansen suggested the bill’s implementation would lead to broader regulation of crypto.

Read Original/a>
Author: AnTy

NYDIG Files for a Bitcoin ETF with the SEC with Morgan Stanley as Authorized Participant

Bitcoin trading and custody services provider NYDIG has filed for a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).

Morgan Stanley will serve as the proposed authorized participant, as per the NYDIG’s S-1 filing published on Tuesday. Authorized Participants are expected to sell shares to the public at prices that reflect the value of the Trust’s assets, supply and demand for the shares, and market conditions at the time of a transaction reads the document.

If approved, it will trade on the NYSE Arca exchange.

The investment objective of the Trust is to “reflect the performance of the price of bitcoin less the expenses of the Trust’s operations,” but won’t seek to mirror the performance of any index, says the filing.

The subsidiaries – NYDIG Asset Management LLC is the sponsor of the trust, and NYDIG Trust Company LLC would be the custodian of the digital asset.

“Shareholders who decide to buy or sell Shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges. Such trades may occur at a premium or discount relative to the net asset value (“NAV”) of the Shares of the Trust.”

NYDIG is the latest in the line of firms filing for a Bitcoin ETF [Accelerate and VanEck], which many are expecting to be approved this year, while JPMorgan strategists believe a Bitcoin ETF approval would have negative implications for the price in the short-term by eroding Grayscale’s GBTC’s effective monopoly status and causing a cascade of GBTC outflows.

No Bitcoin ETF has been approved by the SEC to date.

Just last week, the first publicly traded Bitcoin ETF was approved in North America by Canada’s financial regulator, the Ontario Securities Commission (OSC).

Read Original/a>
Author: AnTy

SBI Holdings Acquires Crypto Trading Platform B2C2 After Taking Minority Stake in July

Japanese financial group SBI Holdings subsidiary SBI Financial Services has acquired the UK-based crypto trading firm B2C2.

The deal’s financial terms were not disclosed, but with this acquisition, which was announced by the companies on Tuesday, it will make SBI the first major financial group to run a digital asset dealing desk.

Founded in 2015, B2C2 helps exchanges, brokerages, and fund managers make large trades in digital assets.

SBI first acquired a minority stake in the crypto firm in July, and its clients have already been using the platform to trade crypto assets. With the latest deal, the companies want to help the mainstream financial firms invest in cryptocurrencies. Yoshitaka Kitao, president and CEO of SBI Holdings said,

“Their (B2C2’s) vision, expertise and offering complement SBI’s, and we look forward to working in partnership as we expand our footprint across the global markets.”

B2C2’s team in Japan will now move into the SBI’s offices as part of the acquisition. Max Boonen, the founder of B2C2, expects the team to grow from the current 50 to 70 people over the coming months.

This is no surprise for the crypto market; in 2020, everyone wants a piece of digital assets as Bitcoin soars to new all-time highs, breaking the crucial $20,000 price; Altcoins are rallying as well.

S&P Dow Jones Indices and Cboe Global Markets have announced the launch of their crypto index in 2021 while several mainstream financial and insurance firms, hedge fund managers, high net worth individuals have been investing in Bitcoin as a hedge against inflation and devaluing fiat currencies around the world.

“A lot of people have been dismissive for a long time,” Boonen said in an interview.

“Bitcoin’s price at an all-time high has put concerns to rest.”

Read Original/a>
Author: AnTy

Avalanche Blockchain Taps into the $10 Billion Market With An Initial Litigation Offering Token

In collaboration with Republic Advisory services and U.S-based law firm Roche Cyrulnik Freedman LLP, Ava Labs has announced the debut of Initial Litigation offering (ILO) using the Avalanche blockchain. This initiative will tap into the $10 billion litigation financing asset class to open up the market to more retail investors. Notably, the token is the first of its kind to be hosted within a blockchain ecosystem.

The initial ILO to be hosted on Avalanche blockchain will be a litigation financing towards an ongoing matter where the plaintiff Apothio LLC is accusing Kern County, California of unlawfully destroying 500 acres of Hemp; an estimated $1 billion according to market value. Apothio LLC, which specializes in the industrial research, development, and commercialization of cannabidiol oil (CBD), is expected to raise its ILO in Q1 2021.

Decentralized Litigation Funding

Litigation funding, which is also dubbed ‘legal financing,’ is an avenue for plaintiffs to raise resources to sustain their court matters to the end. Before the ILO token launch on Avalanche, this process was generally centralized and mainly attracted institutional players such as LexShares, a leading litigation fund.

Well, the field has now been leveled by Avalanche’s ILO; each token will represent a legal claim to a portion of the potential financial recovery. However, the funders will have to bear the full risk of capital erasure if claims that they choose to back are unsuccessful. Ava Labs’ Kevin Sekniqi commented on the value proposition of decentralizing litigation funding,

“ILOs are a breakthrough for both individuals lacking the resources to seek remediation, and for retail investors who are often locked out of the most highly-performant asset classes.”

“They are fundamentally unique from any other investments, and the creation of the ILO marks the first time blockchain technology will be used to democratize financial products at a multi-billion-dollar scale.”

Read Original/a>
Author: Edwin Munyui

Crypto.com to Debut in Australia Following the Acquisition of a Locally Licensed Entity

Crypto.com is set to roll out its services for the Australian market following the acquisition of a licensed entity dubbed ‘The Card Group Pty Ltd’; this automatically grants the crypto exchange and debit card provider an Australian Financial Service License (ASFL).

The acquisition of an ASFL license means that Crypto.com will offer its blockchain services, including a DeFi wallet and derivative products. Australia’s AML and Counter-Terrorism Financing Act 2006 requires particular financial services to acquire an ASFL license before kick-starting operations.

The Card Group Pty Ltd, which is the company that was acquired by Crypto.com, specializes in providing solutions to organizations that seek to grow engagement with cardholders. According to the background information on Crunchbase, some of its services include ‘prepaid cards, mobile, and wearable solutions.’

Crypto.com Expansion into Australia

This milestone by Crypto.com has given them the green light to debut their crypto services in Australia within the legalities provided. Consequently, the firm will expand its market share and stakeholder network within Australia’s financial services ecosystem. The firm had already started preparations, having recently enabled the transfer of Aussi dollars from bank accounts via BPAY; users can also opt for deposits via NPP (PayID).

Notably, Australia has been touted as one of the most legal certain jurisdictions by crypto stakeholders looking to debut their innovations or idea. The country began formulating its crypto oversight as early as 2014 before crypto got all the hype followed three years later. Crypto.com, which is domiciled in Hong Kong, also recently acquired a provisional license to operate in Malta, popularly referred to as the ‘blockchain island.’

Read Original/a>
Author: Edwin Munyui

Fireblocks Raises $30M to Expand Its Crypto Service Operations; Building a ‘Next-Gen Backend’

To extend its services for larger firms in the crypto sector, Fireblocks recently completed a Series B funding round of $30 million and has a $46 million total raised in cumulative fundraising.

The funding round led by Paradigm, along with several investors, Cedar Hill Capital, Cyberstarts, Swisscom, and Galaxy Digital, to name a few, will enable the firm to expand its global operations to meet the demands of the retail market and institutional traders in the crypto market, according to a press release from Fireblocks.

The firm says it will be offering tools for the transfer and secure storage of digital assets, either for traditional hedge funds or crypto exchanges.

Fireblocks plans to lure more institutional players.

Although Fireblocks will be very active in the crypto-native markets, the company says it still wants to take advantage of the crypto market’s positive regulatory momentum and go after institutional players. The firm also says that the simplistic nature of the Fireblocks platform makes it attractive to many users in the industry, leading to the rush of its integration. The company pointed out,

“Everyone from crypto-native funds to large tech companies and banks is integrating Fireblocks because it’s simple.”

The company is committed to maintaining its market position as the industry leader, supporting customers’ high demands as the mainstream sector enters into massive adoption of cryptocurrency.

In the third quarter of the year, Fireblock’s customer growth increased by 533%, and the company is growing at a similar pace this fourth quarter.

To improve the speed of crypto transactions, Fireblocks launched a program, with crypto derivatives exchange FTX being the first to join the program. Fireblocks wants to increase participation in the program by inviting more exchanges into the program next month.

Paradigm co-founder joins Fireblocks director board

As part of the deal, Fred Ehrsam, the managing partner and co-founder of Paradigm, joined the board of directors at Fireblocks.

Ehrsam is also the co-founder of Coinbase, and chief executive officer of Fireblocks Michael Shaulov has acknowledged his crypto space contribution. “One can say he almost built this space,” Shaulov said in the press release.

Fireblocks intends to double its workforce

Buoyed by the influx of funds, Fireblocks intends to scale its infrastructure and personnel, according to Shaulov. The company wants to hire personnel across the support, marketing, and staff sales department. It also has plans to double its engineering team within the next three months.

The anticipated recruitment will increase its workforce from its present number of 70 personnel to about 130 in the next three months.

Fireblocks wants to meet the increasing demands of customers and clients in the industry. Its main service is directed towards hedge funds, over-the-counter trading desks, exchanges, and institutional clients to transfer funds securely. According to reports, the company serves over 120 commercial clients presently.

With the added funds, it is believed that the number will increase within the next few months.

Read Original/a>
Author: Ali Raza