Visa, Blockchain Capital, and Others Back $40 Million for Anchorage Crypto Custodian

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Visa, Blockchain Capital, and Others Back $40 Million for Anchorage Crypto Custodian
Anchorage has announced that they have raised around $40M in a Series B funding round. A few of the large backers include Visa, Blockchain Capital, and Andreessen Horowitz. Anchorage provides crypto custody services for institutional investors.
Visa, Blockchain Capital, and Others Back $40 Million for Anchorage Crypto Custodian

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Source: CoinSpeaker

How Crypto Custodian Firms will Form New Age Banks Under the SEC Guidelines: Analyst

Recently, the SEC in the US released a new set of guidelines on 8th July 2019, specifically for cryptocurrencies service providers. The SEC regulations have kept the start-ups under a lot of doubts for the current guidelines have failed to cover cryptocurrencies.
According to their new press release, the SEC will view custody arrangements and non-custodial arrangements differently. Furthermore, it has also allowed for the inclusion of non-custodial service firms to operate in the US. This is a positive move for start-ups like P2P platforms, payment facilitators, and OTC desks.
Caitlin Long, from the Wyoming Blockchain Task Force – a state-sponsored Task Force, established for blockchain development, reviewed the new rules and shared here analysis for the future of Crypto Custody Firms.
The pending ETF proposal, along with several other trading applications and Exchanges require the firms to act as custodians of the cryptocurrencies. Hence, Caitlin thinks that
“SEC’s new guidance would have been a bummer for the #crypto custody industry were it not for #Wyoming‘s new #SPDI law”
The State of Wyoming in the Western part of the United States has enacted several laws related to blockchain earlier this year, making it the only state which provides a comprehensive legal framework for entities engaging with cryptocurrencies.
The ‘Custody Rule & Customer Protection Rule’ set up by the SEC is to protect the traders and investors against all possible threats to their investments. The Crypto Custody firms have so far established themselves as Trusts; however, they are still failing to meet the SEC guidelines.
here’s the definition of “bank” under the Exchange Act–state-chartered banks work here, but trust cos don’t. So…#Wyoming is where #digitalsecurities custodians (& #crypto custodians more broadly) are likely to set up shop, using our new #SPDI law. Come check us out!
Definition of a bank according to the SEC (Source)
SPDI is an abbreviation for ‘Special purpose depository institutions,’ these are essentially banks that act as custodians but do not engage in any kind of lending or leveraging activities. The inclusion of such services within the Financial Industry is imperative because it will help prosper ‘hard money’ over an interest rate and inflation driven economy that is expected to doom. Many experts have suggested that the current financial system is failing, and cryptocurrency is a hedge against that.
Caitlin also predicted that in a tweet that Trust companies in the US like Gemini, Grayscale, and so on will probably end up being banks to facilitate crypto trading and custody. She tweeted,
set up trust companies (NY, SC, NV) will prob end up converting to a #Wyoming #SPDI so they can meet certain #SEC rqmts simply by nature of being a bank (such as good control location, among others). We knew the #SEC has a preference for banks over trust cos as #crypto…
Therefore, it might not be long before the actual ‘crypto-banks’ start competing in the Financial Services industry.
What do you think the existing banks will do to shun the competition? Please share your views with us. 
The post How Crypto Custodian Firms will Form New Age Banks Under the SEC Guidelines: Analyst appeared first on Coingape.
Source: CoinGape

KuCoin Users Can Now Custody Their Own Crypto Assets

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KuCoin Users Can Now Custody Their Own Crypto Assets
KuCoin crypto exchange has entered in a partnership with Arwen to allow its users to custody their crypto assets while trading.
KuCoin Users Can Now Custody Their Own Crypto Assets

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Source: CoinSpeaker

IBM Makes Quiet Entry into the Crypto Custody Space

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IBM Makes Quiet Entry into the Crypto Custody Space
A New York investment firm, Shuttle Holdings announced that they will launch the beta version of a custody solution for digital assets built on IBM’s private cloud and encryption technologies, later this month.
IBM Makes Quiet Entry into the Crypto Custody Space

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Source: CoinSpeaker

Fidelity Backs $1.9M Seed Round in Blockchain Analytics Startup Coin Metrics

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Fidelity Backs $1.9M Seed Round in Blockchain Analytics Startup Coin Metrics

Being supported by Fidelity Investments, Coin Metrics, a cryptocurrency data provider, has managed to raise $1.9 million of venture funding.

Fidelity Backs $1.9M Seed Round in Blockchain Analytics Startup Coin Metrics

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Source: CoinSpeaker

The State of Wyoming Passes Three Bills for the Crypto Industry

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The State of Wyoming Passes Three Bills for the Crypto Industry

The new bill by Wyoming classifies digital assets as property while legalizing its uses in other blockchain-based financial services.

The State of Wyoming Passes Three Bills for the Crypto Industry

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Source: CoinSpeaker

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

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Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

Mike Novogratz has announced once more that he is confident bitcoin will become a store of value in future even overtaking gold for that purpose to become the ultimate digital gold.

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

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Source: CoinSpeaker

TokenSoft Rolls Out Unique Custody Solution Designed for Security Tokens Specifically

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TokenSoft Rolls Out Unique Custody Solution Designed for Security Tokens Specifically

Blockchain company, TokenSoft Inc. just released the Beta version of their new Knox Wallet, a digital assets and securities wallet specifically designed for use by enterprises.

TokenSoft Rolls Out Unique Custody Solution Designed for Security Tokens Specifically

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Source: CoinSpeaker

Will Fidelity’s New Institutional Crypto Products Boost Markets?

A major financial institution getting involved in cryptocurrencies is usually big news. With the prolonged US government shutdown hampering a number of long awaited crypto funds, large investment companies are seeking alternative ways to enter crypto markets.
Fidelity Crypto Custody Coming
According to Bloomberg Fidelity Investments is planning to launch its Bitcoin custody services in March. The mutual fund giant is hoping to ease the fears that institutional investors may have about the highly volatile and somewhat technical world of crypto trading. The delayed Bakkt and VanEk crypto funds have put the brakes on any hopes investors may have had about entering the space as early as February.
The firm initially announced an array of crypto based products for institutional investors back in October. Citing ‘three people familiar with the matter’ the report added that Bitcoin storage is likely to be the first offering shortly followed by a custody service. An official company statement yesterday added;
“We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
The need for crypto custody arises from the risks involved of leaving investments with crypto exchanges. There were a number of high profile hacks during 2018, with Coincheck being the largest at over $500 million. These security breaches do not instill confidence in institutional investors who need to be safe in the knowledge that their crypto investments are securely stashed with a reputable finance firm. Fidelity, one of the world’s largest providers of retirement savings and mutual funds, aims to fill that niche by offering such a service.
It is not the first foray into crypto for Fidelity as CEO Abigail Johnson has been a Bitcoin proponent for several years. The firm’s Fidelity Digital Asset division aims to attract Wall Street whales to crypto markets by offering a safe haven for their assets via cryptographic key management. The company already has a huge reach working with over 13,000 financial institutions.
Fidelity could provide the first serious on-ramp for high rollers with the launch of its services in March. With markets on the floor, now would be a much more lucrative time to get in than in December 2017 when the first two Bitcoin hedge funds were launched by CME and CBOE. Those looking to invest now will be longing for such a product and Fidelity could be the catalyst to start markets moving upwards again.
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Coinbase Forays Into Asia Targeting High Volume Businesses with New Trading Services

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Coinbase Forays Into Asia Targeting High Volume Businesses with New Trading Services

Now Coinbase will provide high-volume clients across the Asian region with its professional trading and custody services.

Coinbase Forays Into Asia Targeting High Volume Businesses with New Trading Services

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Source: CoinSpeaker

BitGo Partners Genesis to Allow Institutions Trade Digital Assets Avoiding Crypto Exchanges

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BitGo Partners Genesis to Allow Institutions Trade Digital Assets Avoiding Crypto Exchanges

Owing to a recently signed partnership between blockchain custodian BitGo and over-the-counter exchange Genesis, there is no need to lose time transferring your crypto-assets from a cold wallet to the exchange as you can trade directly from BitGo.

BitGo Partners Genesis to Allow Institutions Trade Digital Assets Avoiding Crypto Exchanges

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Source: CoinSpeaker

Hyperblock launches Insured Cryptocurrency Custodial Services to Strengthen Institutional Client Offering

Crypto custodial services have been considered a critical element for institutional monies to flow into crypto markets. Even US SEC has mentioned the same a couple of times while disapproving the Bitcoin ETF. A lot of exchanges including Coinbase and Swiss Exchange SIX have launched their custodial services and the latest addition to this list is Hyperblock which secured a contract to provide Insured Crypto Custodial Services for First Institutional Client.
Hyperblock shares jump 50% possibly triggered by the Crypto Custodial announcement
HyperBlock Inc. (CSE: HYPR) is one of North America’s largest publicly traded diversified crypto asset enterprises. The company is operating one of the largest and most efficient cryptocurrency data centres in North America and it strives to help people and businesses create, safeguard and manage crypto assets. Its offerings include server hosting, server hardware sales as well as Mining-as-a-service and now a proprietary Custodial vault product.
While announcing its Q2 results (Canada follows April- March Financial Year format), the company made this major announcement with respect to its crypto custodial services which triggered the stock prices by 50%. HyperBlock confirmed it has received a written commitment for insurance coverage from an A+ rated insurer, for its newly-launched, proprietary crypto custodial service, HyperVault.  HyperBlock also announced it has signed a three-year agreement with a private Caribbean-based investment bank to provide insured custodial services. The contract terms include a minimum of $10M in assets under management to start — with a maximum balance of USD$400M in crypto assets under management.
HyperBlock CEO Sean Walsh was quoted saying
“Although it’s been a challenging road that required focus and significant investment, HyperVault is a potential game-changer for HyperBlock,”
The result also had another significant announcement which said that HyperBlock will be moving 100% of its servers to US datacentres
Regarding this decision CEO Sean Walsh was quoted saying,
“During Q3, HyperBlock began to aggressively reorganize our team and reduce data centre and other operating costs inherited with the CryptoGlobal amalgamation. We took these steps in anticipation of ongoing market challenges, and our goal is to consolidate 100% of our mining operations into our Project Northwest datacentre,”
The company estimates the data centre consolidation at Project Northwest will be complete in Q1 2019.  Walsh says that by moving out of its Eastern Canada datacenters, HyperBlock expects to potentially save approximately $250,000 in monthly operating costs, due to an average current power pricing at Project Northwest of 3.3 cents.
As far as numbers are concerned, HyperBlock did deliver impressive Q2 financial results helped by its increased focus on cost reduction and capitalization of post-merger efficiencies. EBITDA in the quarter came in at CAD$3 million awaiting to see the kind of results it will report for the third quarter. The company ended the quarter with revenues of CAD$10.1 million.
The unveiling of a crypto custodial solution should get things rolling for Hyperblock as the stock has been languishing at its all-time lows. This should also allow the company to target institutional investors and change its fortune.
Will Hyperblock be able to capture the institutional market through its HyperVault? Do let us know your views on the same.
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Source: CoinGape

UK-Based Global Security Firm G4S Announces Crypto Custody Solution

Multinational security company G4S has announced that it has been working on a custody solution for cryptocurrencies.
The firm is the latest in a long list of those seeking to address one of the largest perceived problems in the digital asset space – secure storage.
G4S to Join Goldman Sachs, Bakkt, and Others in Crypto Custody Sector
According to a report in the Financial Times, U.K.-based security firm G4S has just launched a cryptocurrency custody solution.
Known for operating a network of prisons, providing event security, and storing large amounts of cash for a number of companies, the global security service provider’s crypto protection offering will be the firm’s first product tailored to the ever-expanding digital asset industry.
It has long been argued that the lack of trusted custody solutions represents one of the largest barriers to institutional cash entering the cryptocurrency market.
So far in 2018, many existing cryptocurrency firms, as well as those associated with more traditional finance, have proposed their own takes on a solution to the problem. The likes of Coinbase, Goldman Sachs, Bakkt (a venture backed by the ICE, owners of the NYSE), and several others have all announced services addressing the need for security measures tailored to those who do not feel comfortable setting up their own digital asset storage solutions.
Perhaps the most exciting name to announce a cryptocurrency custody solution is Fidelity Investments. The multi-trillion-dollar asset management firm stated earlier this week that they would be launching “enterprise-quality” custody for digital currencies, along with a trading desk.
According to Carbon Black, a U.S.-based cybersecurity firm, around $1.1 billion of cryptocurrency was stolen in the first half of 2018.
Much of this has been taken from various exchanges that have had their security compromised by hackers. The likes of G4S, Bakkt, and Goldman Sachs are all hoping that their approaches to securing digital assets will encourage institutional investors put off by the stories of the cyber theft of Bitcoin and other cryptocurrencies to take up positions in the market.
G4S plans to offer a “secure vault storage” service that can be accessed anywhere in the world. It will add additional protection by fragmenting private keys and storing them in different locations. According to the Financial Times report, the pricing of the service will be based on the number of different offline storage devices requested by each client.
Dominic MacIver, a senior risk analyst at G4S, spoke about the custody service in a statement:
“The [crypto] sector has attracted the same old threats for financial systems including robbers, scammers, market manipulators and many others… Our innovative security solution helps protect against some of those threats by taking the assets offline and storing them in high-security vaults.”
Featured image from Shutterstock.
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