Finance

Global Investment Bank Morgan Stanley Launches Dedicated Cryptocurrency Research Team

15/09/2021 by Idelto Editor

Global investment bank Morgan Stanley is establishing a new cryptocurrency research team. “The launch of dedicated crypto research is in recognition of the growing significance of cryptocurrencies and other digital assets in global markets,” the bank said.

Morgan Stanley Sets Up New Research Team

Morgan Stanley is launching a dedicated cryptocurrency research team, Bloomberg reported Monday, citing the bank’s internal memo to staff it has seen.

Led by Sheena Shah, the firm’s lead cryptocurrency analyst, the team will research cryptocurrencies’ impact on both equities and fixed income globally.

Shah will be based in London, where she will report to Adam Wood, who leads Morgan Stanley’s fintech and payments research team in Europe. She will also report to James Faucette, who leads the firm’s fintech and payments research team in the U.S.

The memo states:

The launch of dedicated crypto research is in recognition of the growing significance of cryptocurrencies and other digital assets in global markets.

Morgan Stanley was among the first major investment banks to embrace cryptocurrency. In March, the firm made three bitcoin funds available to its clients. In April, the firm added bitcoin to 12 mutual funds’ investment strategies.

Several other major financial institutions have also established dedicated cryptocurrency teams, including Bank of America (BOFA) which created a crypto research team in July. Last week, asset management firm Franklin Templeton posted a job notice for an “investment research analyst” for cryptocurrency.

A growing number of investment banks have begun offering or are in the process of offering cryptocurrency services to their clients. They include Goldman Sachs, Citigroup, Standard Chartered, Wells Fargo, and DBS.

What do you think about Morgan Stanley launching a dedicated crypto research team? Let us know in the comments section below.

Microstrategy Buys 5,050 More Bitcoins, Now Hodls 114,042 BTC

13/09/2021 by Idelto Editor

Nasdaq-listed Microstrategy has purchased 5,050 more bitcoins for $243 million, raising its total bitcoin holdings to 114,042 coins.

Microstrategy Continues to Grow Its Bitcoin Stash

The pro-bitcoin software company Microstrategy announced Monday that it has purchased more bitcoins. CEO Michael Saylor tweeted:

Microstrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per bitcoin. As of 9/12/21 we hodl ~114,042 bitcoins acquired for ~$3.16 billion at an average price of ~$27,713 per bitcoin.

The company also informed the U.S. Securities and Exchange Commission (SEC) about its bitcoin purchase Monday. The filing states that in the third quarter Microstrategy “purchased approximately 8,957 bitcoins for approximately $419.9 million in cash, at an average price of approximately $46,875 per bitcoin, inclusive of fees and expenses.”

The 8,957 BTC figure includes the 3,907 BTC purchase that was announced in August.

Last week, Saylor revealed that his company avoided “a multi-billion dollar mistake” by choosing to invest in bitcoin instead of gold.

What do you think about Microstrategy acquiring all these coins? Let us know in the comments section below.

Payments Giant Mastercard Acquires Blockchain Intelligence Firm Ciphertrace

09/09/2021 by Idelto Editor

Mastercard, the American multinational financial services corporation, announced the company is dipping further into the digital asset ecosystem by acquiring the blockchain intelligence firm Ciphertrace. The partnership announcement says the firm will help bolster Ciphertrace’s and Mastercard’s cyber security solutions.

Mastercard Purchased Ciphertrace for Undisclosed Sum

On Thursday, the financial payments giant Mastercard (NYSE: MA) has revealed the company has acquired the blockchain surveillance firm Ciphertrace. The blockchain company is a Menlo Park, California-based cyber security firm that specializes in tracking “more than 900 cryptocurrencies.” Ciphertrace was founded by Stephen Ryan on May 31, 2016, and it has filed a number of patents throughout the years. In mid-May, Ciphertrace reported on cryptocurrency crime moving toward decentralized finance (defi), and during the first week of August, Ciphertrace claimed it had enhanced monero (XMR) tracing capabilities.

In the acquisition announcement Ajay Bhalla, president of Cyber and Intelligence at Mastercard, discussed the benefits of digital assets but the payments giant wants to make sure the ecosystem is “trusted and safe.” “Digital assets have the potential to reimagine commerce, from everyday acts like paying and getting paid to transforming economies, making them more inclusive and efficient,” Bhalla said in a statement on Thursday. Bhalla added:

With the rapid growth of the digital asset ecosystem comes the need to ensure it is trusted and safe. Our aim is to build upon the complementary capabilities of Mastercard and Ciphertrace to do just this.

Mastercard’s Entry Into Crypto Gets Deeper

Mastercard has been knee-deep in the crypto economy for quite some time and every couple of weeks the company’s interest gets deeper. At the end of July, Mastercard said the company’s card program was being enhanced for crypto trading platforms and wallets. A week later, Mastercard launched an initiative to help bolster cryptocurrency startups. While Ciphertrace announced the enhanced XMR tracing capabilities, that same week Mastercard outlined the firm’s plans for cryptos, stablecoins, and central bank digital currencies (CBDCs).

Ciphertrace says the firm’s software helps companies find solutions to “enhance their security and fraud monitoring activities for crypto-related programs.” Dave Jevans, CEO of Ciphertrace, explained that Mastercard and Ciphertrace share a similar vision. “We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” Jevans detailed. He further added:

Our two companies share this vision to provide security and trust throughout the ecosystem. We are thrilled to join the Mastercard family to scale CipherTrace’s reach across the globe.

The Ciphertrace acquisition cost was not disclosed in Mastercard’s announcement. Mastercard also explained that Ciphertrace is one of many investments as the company has invested and partnered with firms like Uphold, Bitpay, and Gemini.

What do you think about Mastercard purchasing Ciphertrace? Let us know what you think about this subject in the comments section below.

BBVA Switzerland Launches ‘New Gen’ Digital Account With Integrated Crypto Wallet

04/09/2021 by Idelto Editor

Clients of BBVA Switzerland will be able to buy, store, and trade crypto assets with a digital account that comes with a cryptocurrency wallet. The new banking product will be available across the European Union as well as in a number of markets in South America.

BBVA Switzerland Account Facilitates Cryptocurrency Investments

The Swiss subsidiary of Spain’s banking giant Banco Bilbao Vizcaya Argentaria (BBVA) has announced the launch of a “100% digital investment account.” With the offering, the bank is trying to meet the needs of a new type of tech-savvy clients who want to invest “in more innovative, sustainable sectors and even in crypto-assets.”

The ‘New Gen’ account, BBVA Switzerland explained, offers access to a catalog of companies and funds. They are organized into 11 themes including climate change, and by disruptive technologies like robotics, 3D printing, and autonomous vehicles. “The catalog also seeks to emulate the portfolios of major investors such as Cathie Wood or Warren Buffet,” the bank noted, adding:

The client can invest in traditional assets such as shares or investment funds, and also has a ‘wallet’ for cryptocurrencies.

A European customer who would like to take advantage of the digital investment account must be a resident of an EU member state. The product is also offered in Mexico, Colombia, Argentina, Peru, and Chile among other countries. Javier Rubio, Director of Client Solutions at BBVA Switzerland stated:

With New Gen we want to reach a new type of investor, attracted by new sectors that have great potential to transform the future.

Rubio emphasized the new account boasts a wide range of investment ideas allowing every client to put their money into what is of interest to them. He insisted the offering does away with obstacles and barriers while providing “one of the most competitive rates in Swiss banking” along with BBVA’s guarantee and security.

To start trading, a client has to first register via a dedicated form and then make a video identification call. BBVA Switzerland claims the whole verification procedure takes less than 15 minutes. The minimum deposit requirement to open an account is $10,000 or an equivalent amount in either euros or Swiss francs.

BBVA Switzerland, which specializes in private banking, stressed that the New Gen account provides access to a full range of online banking services and IBAN numbers in dollars, euros, or Swiss francs. The crypto wallet is fully integrated with the bank’s mobile app which allows users to track their bitcoin holdings and other assets.

The array of crypto-related offerings by Swiss banks has been constantly expanding. In May of this year, the state-owned Postfinance bank launched an investment and payments app supporting 13 cryptocurrencies in cooperation with online trading platform Swissquote. In February, 177-year-old Swiss bank Bordier offered its clients exposure to bitcoin and crypto trading services through a partnership with Sygnum, one of Switzerland’s licensed crypto banks.

Do you expect more financial institutions in other countries to follow the example set by Swiss banks? Tell us in the comments section below.

Japan’s Financial Giant SBI to Launch Cryptocurrency Fund

04/09/2021 by Idelto Editor

Japanese financial conglomerate SBI Holdings is reportedly launching a crypto fund that will invest in several cryptocurrencies. “I want people to hold it together with other assets and experience firsthand how useful it can be for diversifying portfolios,” said an executive of the company.

SBI Holdings Launching Crypto Fund

SBI Holdings Inc. has revealed its plan to launch a cryptocurrency fund by the end of November, Bloomberg reported Thursday, calling it the country’s first crypto fund.

Tomoya Asakura, director of SBI Asset Management and president of SBI affiliate Morningstar Japan, explained that the fund will invest in a number of cryptocurrencies, including bitcoin, ethereum, XRP, bitcoin cash, and litecoin.

He added that the fund is aimed at customers who understand the risks associated with cryptocurrencies, including their high volatility. In addition, there may be a minimum investment of about one million yen ($9,122) to three million yen.

Asakura noted in a recent interview that if the first fund “goes very well,” then the firm would like to “move quickly” to launch a second fund. He opined:

I want people to hold it together with other assets and experience firsthand how useful it can be for diversifying portfolios.

SBI is also considering launching another fund specifically tailored to institutional investors if there is enough demand for the product, the executive noted.

Due to strict crypto regulations following hacking incidents at exchanges in Japan, it has taken SBI four years to get its crypto fund off the ground, the publication conveyed. It added that the company had to change its plan of how the fund is offered to investors to comply with regulations.

SBI initially planned to launch its crypto fund as an investment trust, a popular investing method in Japan. However, the country’s top financial regulator, the Financial Services Agency (FSA), banned companies from selling crypto investments using this method. The company then changed its plan and will offer its crypto fund to investors using a vehicle known as an “anonymous partnership.”

Asakura noted that “There is an overwhelming perception that cryptocurrencies are highly volatile and speculative.” He plans to build a track record to show the public and regulators that cryptocurrencies can help investors diversify their portfolios.

What do you think about SBI launching a cryptocurrency fund in Japan? Let us know in the comments section below.