Pressure on the U.S. banking system is questioning whether the Fed can push ahead with such an aggressive tightening cycle, analysts at ING said.
US bank woes? Silicon Valley Bank stocks plunge 1 day after Silvergate downfall
Concerns have been raised around the financial health of the tech-focused bank, which services the likes of crypto-friendly VCs such as Sequoia and a16z.
‘Do not delay’ — ASIC warns Aussies to look for 10 signs of a crypto scam
The list comes out as part of Australia’s 2022 Scams Awareness Week.
Bosnian court sides with Bitcoin miner in frozen bank account case
The second-largest Italian bank would have to pay $144 million in compensation to the mining farm, the judge rules.
Clear regulations will accelerate crypto adoption, says SEBA Bank exec
“In the medium-long term, I expect engagement with crypto to accelerate prompted by a clearer regulatory environment,” SEBA Bank’s Christian Borel told Cointelegraph.
BitMEX execs reveal EU expansion with German bank acquisition
Founded by BitMEX execs, the BXM Operations plans to expand operations in Europe through the acquisition of the German bank Bankhaus von der Heydt.
70% of Jamaica population to adopt CBDC in 5 years, prime minister says
The Caribbean country expects a nationwide CBDC rollout by the end of the first quarter of 2022.
Swiss central bank tests wholesale CBDC with commercial partners
The Swiss National Bank integrated wholesale CBDC in banking systems with five commercial banks as part of the second phase of Project Helvetia.
Axis Bank issues financial contract on state-backed blockchain platform
India’s Ministry of Commerce & Industry developed the SLDE platform for transferring documents using blockchain-based security protocols.
Industry experts reveal a possible method for Bank of Russia to block crypto
Bank of Russia’s crypto restrictions through MCC would unlikely affect exchanges that have been operating illegally so far.
China’s central bank proposes to monitor metaverse and NFTs
The metaverse and NFTs are in the crosshairs of the People’s Bank of China, which wants to track the with Anti-Money Laundering tools.
EU central banks work on DLT-based asset settlement
Banca d’Italia and Deutsche Bundesbank shared experiences on distributed ledger technology-based settlements in a workshop.
Search for fiat alternative ‘perfectly reasonable,’ says StanChart CEO
The CEO of the British bank believes stablecoins, CBDCs and even NFTs will likely outgrow cryptocurrencies.
El Salvador’s largest bank partners with Flexa for Bitcoin payments
Bancoagrícola will work with Flexa to accept Bitcoin across the bank’s network for payments like loans and credit cards.
Crypto is an ‘untested asset category,’ says UBS CEO Ralph Hamers
The UBS chief said the bank continues to urge caution when it comes to crypto exposure for its clients.
China’s central bank says crypto gave impetus to the creation of its CBDC
A working paper released in English by the People’s Bank of China cites cryptocurrencies as an important context for the digital yuan’s development and reveals that the digital currency will use smart contracts to allow for programmability.
Fidelity Digital Is Expanding Workforce By 70% Due To Crypto Demand
The institutional buy-in through major banks and adjacent firms continues this week. Fidelity Digital is the company’s enterprise-grade solution for digital assets. In a recent story first broken by Bloomberg this week, crypto demand is leading the Fidelity division to expand staffing by roughly 70%.
Fidelity Digital: Doubling Down
The report cites an interview with Fidelity Digital Assets president Tom Jessop, who specifically called out Ether as a high-interest product in particular.
Jessop noted that 2020 was “a real breakthrough year for the space, given the interest in Bitcoin when the pandemic started.” He added that the firm has seen “more interest in Ether, so we want to be ahead of that demand.”
In present day, the digital division currently only offers custody, trading, and select services for Bitcoin; however, the asset list seems likely to expand, and Jessop also cited the firm’s desire to offer crypto trading “full-time for most of the week.”
Fidelity Investments is a Boston-based firm that oversees over $10T in assets under management. The expansion for the Fidelity Digital team is likely to result in hiring as many as 100 employees throughout Boston, Salt Lake City, and Dublin. The hiring spree will come on the heels of a November expansion late last year that brought in more than twenty engineers for development of the division’s trading and custody services.
In the first half of this year alone, Fidelity has filed for a Bitcoin ETF and announced Sherlock, an analytics tool for institutional investors in digital assets. The powerhouse investment firm also has a partnership with BlockFi, which enables institutional customers to leverage Bitcoin as collateral against cash loans. Fidelity has also made investments in firms such as Circle, the USDC stablecoin issuer. Circle is on the cusp of going public in a SPAC deal valuing the firm around $4.5B.
Meanwhile, outside of the US, the firm has also partnered with UK-based broker TP ICAP and Zodia Custody to launch a crypto trading platform.
Related Reading | Central Bank Of Portugal Approves Licenses For Crypto Exchange
Institutional Integration
In recent weeks and months, institutions such as banks and credit cards seem to continue to hit the headlines with increasing initiatives in cryptocurrencies. In the past week alone, Swiss bank Sygnum has launched Ethereum 2.0 staking, Visa reported over $1B in crypto-card spending this year thus far, and a bank in Ukraine announced the launch of a Bitcoin trading feature.
Venture capital firms also continue to pour money into the crypto space, including the likes of crypto-dedicated firms.
BTC has been the horse and carriage for Fidelity Digital Assets service offerings, but that could soon be expanded as customers diversify in digital asset demands. | Source: BTC-USD on TradingView.com
Related Reading | How Coinbase, Square, And Fidelity Will Support Bitcoin
Featured image from Pixabay, Charts from TradingView.com
IMF, World Bank and BIS champion central bank digital currencies at G20
A new report released by the triumvirate of global finance argues that central bank digital currencies will benefit worldwide development.
Bank TSB set to bar 5.4M customers from buying crypto
Bank TSB is set to become the latest financial institution in the United Kingdom to prevent customers from investing in crypto.
Goldman Sachs Partners With Galaxy Digital For Bitcoin Futures
Goldman Sachs furthering investment into bitcoin, and even crypto more broadly, shouldn’t surprise anyone too much by now. The top-tier global investment and financial services firm has emphasized this quarter as the one to get their crypto services in swing, and this recent partnership announcement falls in line with exactly that.
The Partnership Perspective: Galaxy Digital
According to a CNBC report, Goldman Sachs is teaming up with Mike Novogratz’s crypto merchant bank, Galaxy Digital. The partnership will enable Galaxy Digital to be Goldman’s liquidity provider for bitcoin futures buy and sell orders on the CME Group derivatives exchange.
In a statement regarding the partnership, head of digital assets for Goldman Sach’s Asia-Pacific region Max Minton said “our goal is to equip our clients with best-execution pricing and secure access to the assets they want to trade. In 2021, this now includes crypto, and we are pleased to have found a partner with a broad range of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem.”
The team at Galaxy Digital is of course optimistic looking forward; Galaxy co-president Damien Vanderwilt went on the record in an interview last week stating that “once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it”. Vanderwilt’s suggestion that other banks will follow suit is certainly not out of the question, either. “There’s a whole dynamic with the major banks that I’ve seen time and time again: safety in numbers”, said Vanderwilt.
Related Reading | Bitcoin Flash Crash Pauses As Goldman Sachs Announces Crypto Services
More “Bank” For Your Buck
Banks are understandably timid when it comes to diving in, but crypto derivatives have been a speculative tool that many see as a gateway for more financial services firms to get involved. This is because of strict regulations that make bitcoin difficult to maneuver around traditionally, but more streamlined in the derivatives landscape.
The partnership news comes less than a week following reports that Goldman Sachs is planning to offer clients the ability to trade options and futures in ethereum. Additionally, the news comes just a few short months after the company resurrected plans from roughly four years ago around a cryptocurrency trading desk. That trading desk, sure enough, came to life last month.
Speculation is abound that the recent partnership for Goldman could apply pressure on the rest of the institutional marketplace to follow in their tracks.
Crypto's continued emergence throughout 2021 have reeled in traditional investors to apply pressure financial services companies to service crypto assets. | Source: CRYPTOCAP on TradingView.com
Related Reading | Goldman Sachs Files For An ETF With Option To Invest In Bitcoin
Featured image from Pixabay, Charts from TradingView.com