Blockchain
Banks embrace crypto-inspired blockchain revolution: The dawn of asset tokenisation
Cryptocurrencies were invented in the heat of the 2008-2009 financial crisis to provide an alternative to banks. The inventors of Bitcoin, who went by the pseudonym Satoshi Nakamoto, envisioned a financial system that didn’t depend on “trusted third parties” that they said couldn’t be trusted in the first place. Instead, it would use cryptography and a decentralized ledger called a blockchain to record transactions and provide irrefutable proof of ownership. Crypto evangelists said this would democratize finance and lower the cost of holding and using money.
Banks scoffed, calling crypto a cypherpunk pipe dream. But more than 15 years later, many banks and other financial institutions on Wall Street are not only in the cryptocurrency business (see ETFs, Bitcoin) but they’re also beginning to adopt the underlying blockchain technology. JPMorgan Chase & Co., Goldman Sachs Group Inc. and other banks are experimenting with or already offering private blockchain services, a concept that strikes many crypto lovers as oxymoronic. Banks are drawn to blockchain technology for its ability to “tokenize” traditional assets like stocks and Treasury bills, making trading them faster and cheaper. Critics say banks aren’t just adopting but co-opting the technology to generate fees, similar to how financial firms turned low-cost, low-touch exchange traded funds into a healthy business.
1. How are traditional assets turned into tokens?
“Real-world asset tokenization” is the process of representing real assets like bonds, stocks, art or even ownership shares in office buildings as digital tokens on a blockchain. Anyone who owns the token owns the asset, and ownership can be moved easily and almost instantly by simply moving the token from one wallet to another.
2. Why do that?
The tokenization process can eliminate settlement delays that come from having to clear transactions and record them across multiple record-keeping systems and from using a slew of intermediaries. Also, by placing contractual information such as the terms of ownership and conditions of transfer on a blockchain, assets can be bought and sold in pieces and traded outside of market hours. Tokens can also be programmed to automatically behave in certain ways: For example, to be released to a seller once goods are delivered to a buyer. Tokenized assets could attract young-adult customers who might not have a brokerage account but already trade crypto.
3. Are any financial companies on Wall Street doing this?
Yes. In March, BlackRock Inc., the world’s biggest asset manager, unveiled its first tokenized mutual fund, the BlackRock USD Institutional Digital Liquidity Fund. It holds assets in cash, US Treasury bills and repurchase agreements, which are a kind of short-term loan, and it keeps records on the public Ethereum blockchain. Investors can transfer their tokens 24/7 to other pre-approved investors. Also, in October, BlackRock used JPMorgan’s Tokenized Collateral Network to turn shares in one of its money markets funds into digital tokens, which were then transferred to Barclays Plc as collateral for an over-the-counter derivatives trade between the two institutions. Banks say this setup can allow customers to more easily use assets as collateral and even use assets that may have previously been unusable as collateral. Franklin Templeton already manages a tokenized mutual fund with more than $360 million in assets. JPMorgan is in the early stages of experimenting with deposit tokens, representing bank deposits.
4. What other kinds of assets could be tokenized?
Stocks, art, houses, golf courses, exclusive memberships — you name it. All assets under the sun could theoretically be tokenized, and many proponents believe they will be. Even sneakers from the likes of Nike are already being represented on blockchains to prove their authenticity when the physical pair is traded.
5. What do financial regulators have to say?
US banking regulators are yet to greenlight innovations such as deposit tokens. They have also expressed worry that instant settlement could intensify bank runs. That’s because customers would be able to use the programmable tokens to automatically withdraw funds from banks when bad news hits. But regulators in other parts of the world, such as Singapore, are already working with many financial institutions on tokenization pilots for, among other things, cross-border payments.
6. What are some concerns?
Tokenization could potentially disintermediate some companies, such as broker-dealers, which currently facilitate many financial transactions. The exact setup of a tokenization project matters as well: With blockchain, there’s only one record for each asset, and the holder of that asset owns it. So if a token is transferred to the wrong address or is stolen, it may be lost forever if a public blockchain is used, for example. That’s why many banks are developing or have developed their own private blockchains. Those blockchains will need to learn to talk to one another if the banks want to be able to handle any substantial interbank transactions. Given how much money and talent banks are pouring into the functionality, that’s probably a matter of when, not if.
Source: biznews.com
The post Banks embrace crypto-inspired blockchain revolution: The dawn of asset tokenisation appeared first on HIPTHER Alerts.
Blockchain
MicroStrategy boosts Bitcoin holdings to 214,400 BTC with $7.8m purchase
MicroStrategy has increased its Bitcoin holdings to 214,400 BTC with a recent purchase of $7.8 million worth of the cryptocurrency. This move further solidifies MicroStrategy’s position as a major institutional holder of Bitcoin and demonstrates its continued bullish outlook on the digital asset.
MicroStrategy, a publicly traded business intelligence firm, has been actively accumulating Bitcoin as part of its treasury strategy, viewing the cryptocurrency as a long-term store of value and hedge against inflation. The recent purchase of $7.8 million worth of Bitcoin adds to the company’s already substantial holdings, reaffirming its confidence in the future potential of the digital currency.
MicroStrategy’s ongoing accumulation of Bitcoin reflects a broader trend of institutional adoption and investment in the cryptocurrency space. As more companies recognize the value proposition of Bitcoin as a hedge against economic uncertainty and fiat currency devaluation, they are increasingly allocating funds to acquire and hold the digital asset.
Overall, MicroStrategy’s decision to boost its Bitcoin holdings with a $7.8 million purchase underscores the company’s conviction in the long-term viability and potential of Bitcoin as a strategic asset. This move is likely to further encourage other institutions to explore Bitcoin as a component of their investment portfolios, driving continued growth and adoption in the cryptocurrency market.
Source: crypto.news
The post MicroStrategy boosts Bitcoin holdings to 214,400 BTC with $7.8m purchase appeared first on HIPTHER Alerts.
Blockchain
Pollbits Redefines Crypto Trading Standards with Industry-Leading Features and Services
PollBits is redefining crypto trading standards with its industry-leading features and services. This platform is making waves in the cryptocurrency trading space by offering innovative solutions and setting new benchmarks for excellence.
PollBits stands out from other crypto trading platforms by introducing cutting-edge features and services that cater to the needs of traders and investors. By prioritizing user experience and functionality, PollBits is enhancing the trading experience and empowering users to make informed decisions in the dynamic cryptocurrency market.
PollBits’ commitment to excellence and innovation is driving its success and setting it apart as a leader in the industry. With its focus on providing industry-leading features and services, PollBits is positioning itself as a go-to platform for traders seeking a reliable and user-friendly trading experience.
Overall, PollBits’ redefinition of crypto trading standards underscores the rapid evolution and maturation of the cryptocurrency industry. As platforms like PollBits continue to push the boundaries of innovation, traders and investors can expect greater accessibility, transparency, and efficiency in cryptocurrency trading, ultimately contributing to the growth and adoption of digital assets worldwide.
Source: cryptonews.com
The post Pollbits Redefines Crypto Trading Standards with Industry-Leading Features and Services appeared first on HIPTHER Alerts.
Blockchain
Fantasy Metaverse Darklume – Presale is LIVE
The presale for Fantasy Metaverse Darklume is now live. This development marks a significant milestone for the project, signaling its progression towards launch and the realization of its vision for a fantasy-themed metaverse.
Fantasy Metaverse Darklume aims to create an immersive virtual world inspired by fantasy themes, offering users the opportunity to explore, interact, and engage with others in a digital environment. The presale phase represents an early opportunity for participants to acquire tokens associated with the project, potentially securing access to exclusive benefits or privileges within the metaverse once it is fully operational.
The launch of the presale underscores the growing interest in metaverse projects and their potential to redefine how people interact and socialize in virtual spaces. As the concept of the metaverse continues to gain traction, initiatives like Fantasy Metaverse Darklume are poised to play a significant role in shaping the future of digital experiences and entertainment.
The presale for Fantasy Metaverse Darklume represents an exciting opportunity for investors and enthusiasts to get involved in a promising project at an early stage. As development progresses and the metaverse evolves, participants can look forward to a new realm of immersive experiences and creative possibilities in the digital landscape.
Source: the-blockchain.com
The post Fantasy Metaverse Darklume – Presale is LIVE appeared first on HIPTHER Alerts.
-
Blockchain6 days ago
39% of Canada’s institutional investors have exposure to crypto: KPMG
-
Blockchain4 days ago
Existing Blockchains Can’t Adopt Post-Quantum Cryptography Without Significant User Impact, Says Johann Polecsak
-
Blockchain7 days ago
Global Payment Gateway Industry Report 2024: Seamless Integration with In-Game Virtual Currency Systems Enables Payment Gateways to Contribute to the Monetization Strategies of Game Developers
-
Blockchain6 days ago
BounceBit (BB) Megadrop Now Open: Participate by Subscribing to BNB Locked Products or Completing Web3 Quests
-
Blockchain2 days ago
RFK Jr.’s blockchain idea, Ethereum ETF approval in question, Bitcoin’s unlikely bull run | Weekly Recap
-
Blockchain4 days ago
FBI warning against crypto money transmitters ‘appears’ to be aimed at mixers
-
Blockchain6 days ago
FAIRWINDS Credit Union Joins Metal Blockchain’s Banking Innovation Program
-
Blockchain4 days ago
Ebang International Reports Financial Results for Fiscal Year 2023