The Daily: Bitsane Introduces Tether-Euro Pair, Covesting Launches in Gibraltar

The Daily: Bitsane Introduces Tether-Euro Pair, Covesting Launches in Gibraltar

The Daily

In Friday’s edition of The Daily, we look at Bitsane’s decision to list tether (USDT) and trade it against the euro. We also cover two other recent announcements in the crypto-space. Digital asset trading platform Covesting is launching operations in Gibraltar, where it has obtained a distributed ledger technology license. And Swissone, a Zug-based digital asset management company, is establishing a regulated tokenized fund.  

Also read: Coinbase Blesses Binance, Game Day for BCH

Bitsane to Trade USDT Against the Euro

European cryptocurrency exchange Bitsane has announced that it’s listing tether (USDT). The stablecoin will trade on its platform in pairs with a number of cryptocurrencies, including BCH, BTC, ETH, LTC, XRP, DASH, DOGE, ETC and REP. Launched as a fiat alternative backed by the U.S. dollar at a 1-to-1 ratio, USDT is usually traded against the greenback. However, Bitsane now offers the option to exchange the cryptocurrency with the euro.

The Dublin-based digital asset trading platform was established in November 2016 and has since signed up around 240,000 users. The exchange currently processes about 25,000 transactions per day and has a daily trading volume of approximately $6 million.

The Daily: Bitsane Introduces Tether-Euro Pair, Covesting Launches in Gibraltar

A number of alternatives to tether have recently hit the market. Some of the more notable examples of these new stablecoins include the gemini dollar (GUSD) and paxos standard (PAX), both of which are ERC20 tokens backed 1-to-1 with U.S. fiat currency. Circle’s USDC is another stablecoin that will soon be listed on leading cryptocurrency exchange Binance.

Covesting Opens Crypto Exchange in Gibraltar

Covesting, another cryptocurrency exchange based in Europe, has announced a soft launch of its new trading platform in Gibraltar. The company recently secured a distributed ledger technology (DLT) license from the authorities in the British Overseas Territory.

The Daily: Bitsane Introduces Tether-Euro Pair, Covesting Launches in GibraltarOver the past year, Gibraltar has adopted dedicated regulations that are tailored to attract businesses from the crypto industry. Covesting, which is registered and incorporated in the jurisdiction, is a fintech company launched by former Saxo Bank traders.

Users who would like to participate in the soft launch are required to register and pass know-your-customer and identity verification procedures. Then they’ll be able to deposit any of the cryptocurrencies that are currently available for trading by transferring funds from their wallets to the trading portfolio on Covesting’s platform. Additional methods for fiat deposits, including credit cards, as well as wire and bank transfers, will be added in the near future.

Swissone to Establish Regulated Tokenized Fund

Swissone Capital AG, a Zug-based digital asset management company, has announced the upcoming launch of a tokenized and fully regulated index fund. According to a press release, the fund will be licensed by the Swiss Financial Market Supervisory Authority (Finma) and offer clients “the liquid utility of tokenization combined with the safeguards of regulatory recognition.”

The Daily: Bitsane Introduces Tether-Euro Pair, Covesting Launches in GibraltarA global survey conducted by professional services network PwC recently showed that regulatory uncertainty and a lack of trust are the two major barriers to entry in the cryptocurrency market. Swissone Capital hopes to substantially ease these two serious concerns by acquiring approval from the Swiss financial regulator.

Over the past few years, a sizable cryptocurrency market has developed in Switzerland, turning the country into one of Europe’s leading crypto-friendly jurisdictions. The country is home to the so-called “Crypto Valley” in the canton of Zug, where hundreds of blockchain startups and fintech companies are now based. Swiss crypto businesses can also take advantage of services offered by banks in neighboring Liechtenstein.

What are your thoughts on today’s news tidbits? Tell us in the comments section.

Images courtesy of Shutterstock, Bitsane, Covesting, Swissone.

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Singapore Central Bank ‘Demonstrates’ Value of Blockchain With Tokenized Assets

The Stock Market and Central Bank of Singapore have successfully developed a blockchain-based settlement system for tokenized assets in partnership with some big names like Nasdaq, Anquan Capital, and Deloitte.

Singapore Central Bank Seeks Faster Settlement

Bitcoinist reported earlier in August that the Monetary Authority of Singapore (MAS), which is also the city-state’s de facto Central Bank, as well as Singapore’s Stock Exchange (SGX), have partnered up with Anquan Capital, Deloitte, and Nasdaq to develop a blockchain-based settlement system of tokenized digital assets.

Binance Partners With Southeast Asian Venture Capital Giant to Launch Fiat-to-Crypto Exchange in Singapore

In a joint press release dated November 11, MAS and SGX announced that the collaboration has been successful and that they’ve developed Delivery versus Payment (DvP) capabilities for settling tokenized assets throughout different blockchain-based platforms. Purportedly, this will help simplify the process after the trade and make settlement faster.

According to Ms. Tinku Gupta, Head of Technology at SGX as well as Project Chair, a patent has also been already filed:

We are delighted to drive this important industry effort to accelerate innovation in the marketplace. Based on the unique methodology SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent.

Tokenized Assets on the Rise?

While Singapore’s Central Bank has traditionally been receptive of blockchain technology, it seems to be particularly keen on tokenized assets.

Speaking on the successful proceedings of their partnership, Mr. Sopnendu Mohany, Chief Fintech Officer at MAS outlined:

Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally. This project has demonstrated the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term. The concept of asset tokenisation, as well as other learnings gleaned from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.

Juzar Motiwalla, Co-Founder of Anquan Capital, on the other hand, recognizes the evolution of tokenized assets and the impact they might have on existing business models:

The evolution of new forms of tokenised assets is accelerating the search for new business models, which in turn intensifies the search for dramatically improved settlement engines. […]We see keen interest in this across multiple sectors, including financial services and digital advertising.

It does seem like asset tokenization could be the next big thing. Last month Bitcoinist reported that a $30 million New York condo has been tokenized on the Ethereum blockchain.

What do you think of tokenized assets and Singapore’s new settlement system? Don’t hesitate to let us know in the comments below!

Images courtesy of Shutterstock

Distributed Ledger Tech (DLT) can Automate Regulation: CFTC Chairman

Christopher Giancarlo

As FinTech continues to reimagine new business models for finance, a high-profile financial regulator believes it can also be used to enforce derivative laws more effectively.

J. Christopher Giancarlo, the chairman of the US Commodity Futures Trading Commission (CFTC), highlighted distributed ledger technology (DLT) and how it can automate regulations for derivative markets while speaking at the D.C. Fintech Week Conference at Georgetown University this Wednesday.

Quantitative Regulation

DLT-powered Quantitative Regulation, according to Giancarlo, could help regulators to oversee markets more efficiently while saving costs. Combined with machine learning algorithms, it can be employed to identify the segments of markets where high risks or unrecognized counterparty vulnerabilities are rising. Also, the CFTC chair noted that Quantitative Regulation could standardize and distribute critical information to market actors – including regulators.

“We can also envision the day where rulebooks are digitized, compliance is increasingly automated or built into business operations through smart contracts, and regulatory reporting is satisfied through real-time DLT networks,” Giancarlo explained. “The machines here at the CFTC would have the ability to communicate regulatory requirements and consume and analyze the data that comes in through such systems.”

The comment came at a time when financial regulators across the world are attempting to match up their regulatory pace with the velocity of FinTech innovations. As Giancarlo put, CFTC is looking into an active form of regulation, which can respond to real-time challenges posed by new technologies. He specifically mentioned decentralized markets and disintermediated traditional actors while referring to the said challenges.

Giancarlo confirmed that the CFTC has “the ability to keep pace with those who attempt to defraud, distort, or manipulate,” hinting it may have already started building systems that will automate derivate market regulations.

Digitizing Rule-Sets and Reporting Real-Time Data

Giancarlo stressed how their machine learning and DLT systems would be able to 1) digitize rules and regulations and, 2) consume, process, and analyze data in real-time. Moving the CFTC to such a technology would enable it to analyze data as it gets reported. It would further allow the regulatory agency to study the impact of certain provisions and how they can be modified to ensure an optimal outcome.

“Rather than rely on static rules and regulations that were put in place without knowing exactly the consequences or results they would drive in the market, we may be able to measure data, real-world outcomes, and success in satisfying regulatory objectives,” Giancarlo envisioned.

The full speech of J. Christopher Giancarlo is available at this link.

Featured image from Shutterstock.

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