Clients are reminded of the following important filing dates for Financial Institutions (FIs) under the CRS and FATCA Regime and Economic Substance regime filings with the Tax Information Authority in the Cayman Islands. Additionally, clients are...
The below is an update on the cryptocurrency and blockchain industry.
ICE + Microsoft + Starbucks = Bakkt
Intercontinental Exchange (owner of the New York Stock Exchange) announced Bakkt a new venture, expected to launch in November, which aims to transform Bitcoin into a trusted global currency with broad usage.
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,” said ICE's CEO Jeffrey Sprecher in a statement.
ICE is partnering with Microsoft, Boston Consulting Group, and Starbucks.
"Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility" said Kelly Loeffler, ICE’s head of digital assets, who will serve as CEO of Bakkt,
The founding imperative for Bakkt will be to make Bitcoin a sound and secure offering for the world’s big financial institutions. The goal is to clear the way for major money managers to offer Bitcoin mutual funds, pension funds, and ETFs, as highly regulated, mainstream investments.
Bakkt's Solution
"Trading on an official exchange, and safe storage for digital currencies on an institutional scale."
Bakkt aims to provide the first fully-integrated package; a major federally-regulated exchange, as well as clearing and storage services.
By utilizing its CFTC regulated futures exchange for cryptocurrencies, Bakkt aims to provide two critical security layers.
The first is to ensure that regulated broker-dealers submit passports and articles of incorporation, and identify the source of funds used to purchase the crypto assets, as well as identify possibly illegal patterns of activity.
Only fully vetted broker-dealers and futures commission merchants are able to trade on the regulated exchanges. Exchange approved members can then trade with one another on behalf of their fully vetted clientele
The second essential is providing regulated storage or warehousing of digital assets, which ensures primarily that the assets are secure, protected by multiple layers of cyber security and secondly that the policies and procedures followed verify the identities of investors, guaranteeing that the assets stored were not obtained illegally.
The advantages Bakkt aims to bring to Bitcoin are fundamentally contrarian to what Bitcoin supporters typically champion. A large centralised authority may be precisely what is needed to bring the banks, asset managers and endowments to embrace the cryptocurrency. Purists argue that this move may work for the short term but that the original Bitcoin vision of peer to peer networks will establish itself over the long term.
In any event, it seems that Bakkt is the best bet to bring ICE's main customers to the table, enabling big money managers to offer ETF's and mutual funds to current and future investors who see Bitcoin as a store of value, like gold or silver.
Commonwealth Bank of Australia Completes New Blockchain-Enabled Global Trade Experiment
Commonwealth Bank and several international supply chain leaders have successfully shipped and tracked seventeen tonnes of almonds from Sunraysia in Victoria, Australia, to Hamburg in Germany using a new blockchain enabled global trade platform.
The platform digitizes three key areas of global trade: operations, documentation, and finance, by housing the container information, completion of tasks and shipping documents, on a purpose-built blockchain.
Rumours of Nasdaq/Gemini joint venture to list tokens in Q2 2019
Based on two sources close to Gemini and the Winklevoss twins crypto empire it is believed that Gemini and Nasdaq are moving closer and closer to a ‘joint venture’ that allows both the Nasdaq and Gemini to list tokens and provide liquidity on a global scale. What was referenced was a deeper relationship between the two firms and increased confidence from Nasdaq that there is a pathway to list, at a minimum, Bitcoin, and Ethereum, as tradeable entities on a global scale.
A second Gemini source was a little more specific with the timing of a Nasdaq move into crypto trading: “Nasdaq and Gemini have gotten very, very comfortable with each other... I’d put money on their being a joint venture of some sort that sees several tokens listed and available to the public to trade on the Nasdaq by Q2 of 2019."
G20 Acknowledges Trade as Key Engine of Economic Growth
The communiqué issued at the close of the Third G20 Meeting of Finance Ministers and Central Bank Governors in Buenos Aires this weekend shows support from the world's main economies to international trade and investment as "important engines of growth, productivity, innovation, job creation and development."
The document, agreed by all G20 member countries, reads that "global economic growth remains robust and unemployment is at a decade low."
The 57 delegates, including ministers, central bank governors and senior representatives from international organizations, agreed therefore to continue "using all policy tools to support strong, sustainable, balanced and inclusive growth." Among these tools, the communiqué mentions fiscal measures and monetary policy, the continued implementation of structural reforms, and international trade and investment. The document also provides 68 examples of related policies carried out by G20 member countries.
We are grateful for the contributions by Crypto consultant Nick Hoskins.
If you would like further information please contact:
 Chris Humphries |
