Bakkt Announces Launch Date of Bitcoin Custody for Institutional Clients

Bakkt has announced the launch date of its’ custody, termed as Warehouse. The update on twitter noted,
On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23
Bakkt was recently cleared for launch by the authorities in the US. These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and ‘custody.’
Kelly Loeffler, the CEO of Bakkt, announced a launch date for its futures trading as early as 23rd September 2019. It is a milestone for Bitcoin for two reasons, the parent company of NYSE (New York Stock Exchange) backs it, and it offered a physically settled futures contract.
Why Is Custody as important as the platform itself?
Bakkt’s Warehouse is a regulated custodian for digital assets. It is similar to Coinbase custody and to some extent, Grayscale Trust. These institutions provide for secure storage of Bitcoin for its clients. Bakkt will begin its custody for ‘sophisticated institutional clients.’
In April, Bakkt acquired the Digital Asset Custody Company (DACC). DACC provides native support for 12 blockchain projects. While Bakkt is beginning its custody with Bitcoin, it is planning to expand its services to include other digital assets as well.
Also Read: 5 Reasons Why Bakkt’s Launch is BIG News for the Crypto Community
Since the Warehouse is insured and provides an institutional guarantee with trading, many hedge fund managers and brokers will look to join the program.
Do you think increased custody or institutional ‘hodling’ with affect Bitcoin’s price? Please share your views with us. 
The post Bakkt Announces Launch Date of Bitcoin Custody for Institutional Clients appeared first on Coingape.
Source: CoinGape

Coinbase Acquires Xapo’s Bitcoin Custodial Arm, CEO Reveals Ambitious Future Plans

US-based Crypto Exchange Coinbase has announced the acquisition of Xapo’s institutional business. Xapo is a Hong Kong-based cryptocurrency firm that provides wallets, cold storage of Bitcoins and also Bitcoin debit cards. Reportedly, the deal was worth $55 million.
Coinbase.com is one of the most trusted crypto exchanges in the US and Europe. Reportedly, Coinbase outbid Fidelity in the race for Xapo. The report also cited that while some other firms placed higher bids, Coinbase provides the level of “security or regulatory credentials to be acceptable to Xapo’s clients.”
Coinbase Pro and Coinbase Custody service institutional clients (high-volume investors) only. They claim best-in-class security and insurance for their custody platforms.
By acquiring Xapo’s custodial arm, Coinbase now became the largest crypto custodian in the world. It has a total Asset Under Custody (AUC) worth $7 billion and serves over 150 clients in 14 nations.
Coinbase Custody AUC
Xapo, under CEO Wences Casares, has primarily concentrated its efforts around Bitcoin. Reportedly, it will focus on the retail adoption of Bitcoin.
Future Plans of Coinbase and it’s Custodial Arm
Moreover, Coinbase is planning to expand its custody business to other crypto assets and provide banking services as well. It is planning to include ‘staking’ which align with the recent additions to Coinbase of Tezos and Algorand. The CEO of Coinbase Custody Sam McIngvale told the media,
“Moving forward, the next phase of crypto custody is a much broader suite of services serving a much broader set of crypto assets,”
Sam also hinted at the beginning of a revenue stream from the custody from lending and borrowing. This move will necessarily have Coinbase provide banking and other traditional Financial Service. He said,
“Fundamentally, we have to help our investors earn a return on their assets. You can imagine lending out Bitcoin and earning interest on that,”
Coinbase CEO Brian Armstrong has also reiterated in the past about the addition of more crypto within the Coinbase ecosystem. On Coinbase custody he noted,
”Custody is a critical step toward the institutionalization of crypto economy. It’s likely to start off small—maybe a few billion under custody—but it will grow quickly to a point that it’s a meaningful piece of stable, recurring revenue for the company,”
At the beginning of this year, Coinbase also announced an expansion to Japan. Recently, Nao Kitazawa, Head of Coinbase at Japan told the media in the press release,
What really excites me about Coinbase’s opportunity in Japan is to bring to market a product that redefines the way people think about crypto,
Japan’s regulatory environment is different than the US and Europe. What Coinbase has in store for crypto enthusiasts in Japan, might lead to increased adoption.
What additional services could Coinbase offer in Japan? Please share your views with us.
The post Coinbase Acquires Xapo’s Bitcoin Custodial Arm, CEO Reveals Ambitious Future Plans appeared first on Coingape.
Source: CoinGape

Fidelity Digital Assets Applied for a Trust License in NY

Coinspeaker
Fidelity Digital Assets Applied for a Trust License in NY
Allegedly, Fidelity’s cryptocurrency investment arm filed an application with the New York Department of Financial Service (NYFDS) and if approved the institutional brokerage will be allowed to offer crypto-custodial services in the state.
Fidelity Digital Assets Applied for a Trust License in NY

Continue reading at Coinspeaker
Source: CoinSpeaker

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

Coinspeaker
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

Continue reading at Coinspeaker
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

Coinspeaker
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

Continue reading at Coinspeaker
Source: CoinSpeaker

IBM Makes Quiet Entry into the Crypto Custody Space

CoinSpeaker
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

Continue reading at Coinspeaker
Source: CoinSpeaker

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

CoinSpeaker

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

Continue reading at Coinspeaker
Source: CoinSpeaker

The State of Wyoming Passes Three Bills for the Crypto Industry

CoinSpeaker

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

Continue reading at Coinspeaker
Source: CoinSpeaker

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

CoinSpeaker

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

Continue reading at Coinspeaker
Source: CoinSpeaker

TokenSoft Rolls Out Unique Custody Solution Designed for Security Tokens Specifically

CoinSpeaker

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

Continue reading at Coinspeaker
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.
Image from Shutterstock
The post Will Fidelity’s New Institutional Crypto Products Boost Markets? appeared first on NewsBTC.
Source: New feedNewsBTC.com

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

CoinSpeaker

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

Continue reading at Coinspeaker
Source: CoinSpeaker

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

CoinSpeaker

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

Continue reading at Coinspeaker
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.
The post Hyperblock launches Insured Cryptocurrency Custodial Services to Strengthen Institutional Client Offering appeared first on Coingape.
Source: CoinGape