What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
The traditional financial world is increasingly merging with the new decentralized blockchain world. This week one could observe this happening impressively on several occasions. On the one hand, individual banks are pushing further into the new fields. The largest US bank, JP Morgan, started early to explore the possibilities of the blockchain. Since the founding of the Enterprise Ethereum Alliance (EEA) in 2017, the banking giant has been working closely with ConsenSys and other blockchain companies. In addition to a proprietary Stablecoin, the bank is leading projects such as the “Interbank Information Network”, which has over 200 banks as customers and aims to make interbank transfers more efficient using blockchains. The major bank is underlining this course with this week’s announcement of the foundation of a new subsidiary, Onyx, in order to be able to drive forward the blockchain segment in a more focused manner. Furthermore, the analysts of the financial giant have acknowledged Bitcoin some chances to compete with the No. 1 preferred store of value in the future. Back in June, the experts attested Bitcoin 2020 a clear growth and maturity process. CEO Jamie Dimon might have revised his earlier statements to the cryptocurrency by now.
Similar observations can be made in Asia. DBS (Development Bank of Singapore) – Singapore’s largest private and commercial bank – believes that digital assets are the future of the global economy. The bank plans to introduce the DBS Digital Exchange platform. The platform will enable the trading and custody of cryptocurrencies and the processing of security token offerings.
A promising arm of the new industry is the so-called tokenization. Tokens can be used to illustrate and represent a commodity or assets on the blockchain. This provides access to a fractional ownership of the tokenized object. On a trading platform, these tokens can be exchanged to increase their liquidity. For example, existing FIAT currencies such as the US dollar (see also Stablecoin) or assets like gold, real estate, art or stocks can be represented. The beginning of widely accessible equity-token is now made by the crypto exchange provider FTX. From now on, fractions of common stocks such as Apple, Amazon and Tesla can be traded against other cryptocurrencies using so-called security tokens. A groundbreaking bridge between the two asset classes.
The merging of the old and new financial world is becoming more obvious every day. Digital currencies from central banks (CBDCs) are also expected to become another dominant feature of digital currencies in 2021. Last week’s Finanz und Wirtschaft Forum about blockchain in financial services provided interesting insights into a broad range of topics. Issues discussed included CBDCs, crypto currencies and their regulation as well as tokenized real estate. Under the heading “Blockchain in Financial Services 2020”, speakers from various parts of the financial industry addressed specific aspects of the topic. In an on-site insight, we examined the subjects tokenization and the regulation of blockchains and stablecoins.
Furthermore: One week before the US election, the election campaign website of President Donald Trump was hacked. The previously unknown hackers reworked the site and demanded a deposit of the cryptocurrency Monero. Launched in 2014, the digital currency was developed with the aim of making anonymous transactions via the payment network. Contrary to the widespread belief that Bitcoin is anonymous, the case shows that Monero makes it more difficult, if not impossible, to trace payments back to their original source.
Selected articles in the weekly review:
The major US bank JPMorgan is playing a prominent role on the blockchain front. A newly founded subsidiary shall push DLT projects including the company’s own Stablecoin. The bank has also recently expressed a positive attitude towards Bitcoin.
The largest bank in Singapore, DBS Bank, plans to introduce a exchange for crypto-currencies. The DBS Digital Exchange shall provide access to digital assets for institutional investors in a regulated environment.
The Crypto Derivatives Exchange FTX is launching some of the largest stocks as tokens on its platform, an important bridge between the two asset classes.
Blockchain inevitably finds its way into traditional finance. The Finance and Economy Forum dealt with this topic. Insights on site.
Donald Trump’s campaign website has been the victim of a hacker attack and possibly a crypto currency scam. Who is behind this attack is still unknown.
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