According to recent reports, the Swiss-based Amun AG recently received approval to list a cryptocurrency exchange-traded fund (ETF) that tracks the price of XRP on SIX, Switzerland's primary stock exchange. The firm currently has approval to issue cryptocurrency ETFs linked to four other cryptocurrencies, including bitcoin cash, litecoin, stellar lumens and EOS. Meanwhile, a U.S.-based investment management firm also announced plans to launch a blockchain ETF on the London Stock Exchange this week. The ETF initially will target 48 companies, selected through a proprietary scoring system, that are involved with blockchain technology. Coinciding with these ETF announcements, a Boston-based multinational financial services firm's new digital asset platform went live last week with select clients.
Blockchain consortium and credit union service organization CULedger recently announced its partnership with a global information technology firm to pioneer permissioned blockchain network solutions for credit unions. The new partnership seeks to offer credit union members the ability to instantly authenticate financial transactions between members of any credit union on the global network through a customizable CULedger-issued digital credential, MyCUID. This same global information technology firm also announced plans to host the beta version of a New York investment firm's custody solution for digital assets. The solution reportedly leverages the global information technology firm's private cloud and encryption technologies and utilizes a hardware security module that functions like a lockbox to safeguard and manage digital keys. This appears to represent a shift from the current model of cold storage solutions, where private keys are held in a device not connected to a network.
The German Ministry of Finance made news this week with its recommendation that the country recognize securities issued in digital form as a legitimate form of financial instrument. The recommendation also called for legislation that creates a framework to regulate such digital instruments to avoid the possibility of manipulation. Also this week, a major market infrastructure provider for the global financial services industry published a white paper that outlines guiding principles for regulators and market participants for the post-trade processing of tokenized securities. The framework identifies key issues in trading cryptocurrencies that must be addressed to protect market stability. According to another recent report, the emergence of regulated security token offerings (STOs) has led to a decline in the number and volume of initial coin offerings (ICOs) and STOs during the second half of 2018. The report notes that ICOs and STOs still remain attractive to investors as a mechanism for venture capital financing.
For more information, please refer to the following links:
- SIX Exchange May List XRP Exchange-Traded Product in Two Months
- Investment Firm Invesco Launches Blockchain ETF on London Stock Exchange
- Fidelity Digital Assets: An Update on Our Work
- Fidelity's Digital Asset Platform Goes Live With Select Clients
- IBM, CUSO CULedger Partner to Develop Blockchain Solutions for Global Credit Unions
- IBM Quietly Enters Crypto Custody Market With Tech Designed for Banks
- German Finance Ministry Calls for Regulated Blockchain Securities Market
- DTCC Outlines Guiding Principles for Post-Trade Processing of Tokenized Securities
Swiss 4th ICO and STO Report – growing less, but growing up
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