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BNY Mellon Stipulates Plans to Hold, Issue and Transfer Bitcoin and Other Digital Assets Later This Year

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To start with, BNY Mellon will offer custodian services to its clients, then move forward to what its clients demand most.

The Bank of New York Mellon Corp (NYSE: BK) alias BNY Mellon has revealed plans to hold, issue, and transfer Bitcoin and other cryptocurrencies for its institutional clients later this year. Speaking in an interview, Mike Demissie, the head of advanced solutions at BNY Mellon said the bank will focus on the customers’ demand, besides the regulatory side.

To start with, BNY Mellon will offer custodian services to its clients, then move forward to what its clients demand most. “So that’s not just safekeeping of these assets, they want to leverage them for lending purposes, they want to leverage them for collateral. Then we are also looking at issuing digital assets, like tokenized securities, real assets,” Demissie noted.

BNY Mellon, Bitcoin and Crypto Industry

BNY Mellon prides on being one of the oldest banks in the United States with approximately $40 trillion in assets under custody and over $2 trillion in assets under management. Notably, its entrance into the crypto market will be a huge game-changer both for the retail and institutional investors. However, institutional investors are likely to benefit more from the move as they get access to a highly risky crypto industry.

As noted by news outlet Forbes, there has been a huge shift in institutional demand for digital assets in general seeking to diversify their balance sheet. In an email with the media outlet, Demissie noted that digital assets are the future, thus prudent for the bank to work towards secure platforms for digital assets.

BNY Mellon will venture into the crypto market at a time when the United States has offered much clarity into the industry. “Over the course of the last year, we have seen increasing regulatory clarity and guidelines to safely operate in the digital asset space,” says Demissie. Notably, the United States regulator, Office of the Comptroller of the Currency, gave green light to banks to use both public and private blockchains to process payments and other activities.

Institutional investors are seeking for alternative assets to hold their cash into as the dollar continues to inflate fueled by the Fed printing to supply government needs, particularly the stimulus packages.

Although digital assets are viewed as highly volatile, most of them led by bitcoin have shown properties of the store of value over time. For example, as the United States dollar continued to lose value in respect to other notable global currencies, Bitcoin and most altcoins rallied exponentially last year. As a result, both retail and institutional investors have opted to use digital assets especially to counter the coronavirus market crisis.

Perhaps other banks will follow the same path and not only offer custodian services but also add digital assets to their balance sheet.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
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Coinbase S1-Filing with US SEC for Direct Stock Listing Goes Public

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In the S-1 filing, Coinbase has made crucial disclosures to the public with its plans of launching direct stock listing on Nasdaq. As per its recent valuations, Coinbase pegs a value of over $100 billion.

Crypto exchange Coinbase is inching closer to its direct stock listing on Nasdaq. On Thursday, February 25, Coinbase submitted its S-1 filing with the US Securities and Exchange Commission (SEC), thereby making it public for the first time.

The recent submission is a crucial step for Coinbase’s direct stock listing on Nasdaq. The S1 filing with the SEC offers a deeper insight into Coinbase’s business. All the disclosures effectively work as a pitch to the investors. Before this, Coinbase submitted its confidential draft document to the US SEC in mid-December.

The rumors of Coinbase’s public listing first emerged during last summer of 2020. Over the last few weeks, Coinbvase has been releasing its shares in the secondary market to investors. As per its latest share offering, Coinbase’s valuations spiked above $100 billion with a per-share price value of $373. The official blog post for Coinbase notes:

“Coinbase Global, Inc. today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”) relating to a proposed public direct listing of its Class A common stock. Coinbase intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “COIN”.

Coinbase has confirmed that it will take the help of Goldman Sachs, JPMorgan Securities and Citigroup to “assist us with respect to certain matters relating to our listing.”

Coinbase’s Strong Growth Story

Over the last two years, Coinbase has registered strong growth with a major spike in the customer base. By the end of 2018, Coinbase valuations stood at $8 billion and have multiplied 12x by now. As Coinbase noted:

“We have grown quickly and in a capital-efficient manner since our founding. For the years ended December 31, 2020 and December 31, 2019, we generated total revenue of $1.3 billion and $533.7 million, respectively, net income (loss) of $322.3 million and $(30.4) million, respectively, and Adjusted EBITDA of $527.4 million and $24.3 million, respectively.”

After registering a $30 million loss in 2019, Coinbase reported $322.3 million net income as its first positive year in 2020. However, Coinbase has noted that as it expands its operations, its expenses will continue to grow simultaneously. The crypto exchange said:

“We expect our operating expenses to increase significantly in the foreseeable future and may not be able to achieve profitability or achieve positive cash flow from operations on a consistent basis, which may cause our business, operating results, and financial condition to be adversely impacted”.

Other business news can be found here.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Nash: Bridging Gap between Fiat and Crypto

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Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet.

Nash specializes in providing the best fiat/crypto gateway services for both retail and business customers, combining the lowest prices and fees with high-security wallets. This exchange service is fully licensed to operate in Europe.

For BTC, ETH, NEO and USDC, Nash offers 0% fees. This is possible because Nash operates its own crypto-crypto exchange. Nash’s unique Layer-2 exchange provides the same performance as centralized exchanges without taking custody of funds.

For other crypto assets, tradeable on Layer 1 user wallets, Nash charges just 1% fees, with no hidden slippage fees.

What’s more, Nash provides the safest software wallet by using secure multi-party computation (MPC) technology. MPC ensures a user’s full private key is never used to sign transactions and allows for security policies like address whitelists. Nash never has control over user funds.

On the business side, Nash offers its fiat gateway services as a white-label solution for third parties. Fees remain as low as 1%, with no tricks like huge asset mark-ups. Nash is a highly competitive solution for projects seeking a licensed fiat gateway for their platform and token.

Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet. Nash pays merchants the exact fiat price they set in their preferred national currency (€, £ or $) with 0% fees, managing risk around price volatility This is also possible thanks to Nash’s Layer-2 exchange.

In 2021, Nash will expand into digital banking services. High-interest DeFi-staking products will go live in Q2. In Q3, Nash will offer national currency checking accounts (with IBANs) on its platform. These will enable an even simpler savings product where users can easily deposit cash and lock it in a DeFi-powered crypto savings account. With a debit card arriving in Q4, Nash will seamlessly integrate traditional and crypto finance by the end of the year.

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Craig Wright Threatens to Sue and ‘Bankrupt’ Bitcoin Developers, Demands Access to Mt. Gox’s Stolen Coins

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Self-claimed Bitcoin inventor Craig Wright wants developers to do the impossible and help him restore access to his 110K Bitcoin lost during the Mt. Gox theft. He threatens them with legal actions in case they fail to help him.

The self-acclaimed Satoshi Nakamoto Craig Wright is once again back in controversy. Wright has treated to sue Bitcoin developers and “bankrupt” claiming that someone stole 110K Bitcoins from him linked to the Mt. Gox hack. Now Wright wants that Bitcoin developers should help him get his stolen coins back.

Wright Threatens to Bitcoin Developers

Craig Wright sent the legal notice to Bitcoin producers his law firm Ontier LLP. Interestingly, the legal action will further extend to the developers of BCH, BCH ABC and BSV as well. In the letter, Craig Wright-owned Tulip Trading Ltd (TTL) demands access to two major wallets containing 79,957 and 31,000 BTC. These 110K Bitcoins are currently worth around $5 million. In the letter, the lawyers argue:

“Those assets were and continue to be owned by TTL. TTL demands that developers allow TTL to regain access and control of its Bitcoin on the basis that they owe Bitcoin owners both illicit and fiduciary obligations under English law as a result of the high level of power and control. that they hold on their respective blockchains “.

Thus, the ultimate goal of the lawsuit seems to “force” the Bitcoin developers to return them to their starting address. Note that the contributors of the Bitcoin Core network have no control over the network’s wallet.

Regaining Control of the Lost Coins

The self-acclaimed “inventor of Bitcoin”, Craig Wright doesn’t want to blame the developers for what happened. But he thinks that they can still resolve the issue. The letter notes:

“We affirm that there are identifiable legal obligations attributable to those who develop and control Bitcoin. As the victim of a serious theft, Tulip Trading is trying to regain its access and control of its digital assets from those who are able to make up for its loss. The fact that someone has stolen the private Bitcoin keys digitally held by Tulip Trading does not prevent the developers from distributing the code to allow the rightful owner to regain control of his bitcoin. A ruling in favor of Tulip Trading will have significant implications for others who have lost access to their Bitcoin or have had coins stolen .”

“In accordance with their fiduciary duties,” the letter reads, “each of the Developers is obliged to: a. Provide access and control to TTL of the BTC in the Addresses, which it owns but cannot access or control due to the hack/theft. b. Take all reasonable steps to ensure that TTL has access to and control of the BTC in the Addresses,” the letter adds.

Ontier LLP noted that they would initiate legal action if the recipients didn’t comply. But it is impossible for developers to seize funds in Bitcoin addresses that they don’t own. For this, Bitcoin will have to attempt a 51% attack to reorganize Bitcoin’s complete blockchain history.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.





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