Academics speaking at CoinDesk’s Consensus event in New York today appeared doubtful about the economic value of cryptocurrencies. In a panel titled, From Digital Gold to Contract Theory: The Economics of Mainstream Adoption, Joshua Gans, professor of strategic management at Rotman School of Management, said that an economists job, when confronted by new and exciting […]
Arjun Jayaram, CEO of Baton Systems, talks to Profit & Loss about how distributed ledger technology (DLT) is already helping the FX market, why the hype cycle around this technology is coming to an end and who he expects to win the “blockchain wars”. Profit & Loss: What is the problem in the FX market […]
One of the ongoing problems regarding the adoption of cryptocurrencies by mainstream financial firms was on full display at a fintech event hosted by the Depository Trust & Clearing Corporation (DTCC) in New York this week. The problem was highlighted by a fairly innocuous sounding question from the moderator: what is the problem that cryptocurrencies […]
P&L Report Card If there is one intangible benefit in firms allocating budget to the FX businesses it is that it allows people to think innovation once more. After years of throwing resources at seemingly ever-increasing regulatory demands, there is a sense that last year – and this – the shackles are finally off and […]
Societe Generale has revealed that on April 18 its subsidiary, Societe Generale SFH, issued €100 million of covered bonds as a security token (OFH), directly registered on the Ethereum blockchain. The OFH tokens have been rated Aaa / AAA by Moody’s and Fitch and have been fully subscribed by Societe Generale. This operation is the […]
At the Forex Network New York event, Galen Stops, editor of Profit & Loss, sat down with Rob Catalanello, CEO of B2C2 USA, to talk about whether the case for including cryptocurrencies in an investment portfolio is as strong as ever. Galen Stops: In 2017 when the price of cryptocurrencies kept going up and up, […]
Harpal Sandhu, CEO of Integral, talks to Profit & Loss about the launch of his new cryptocurrency exchange, and how he sees the crypto markets evolving in the future.Profit & Loss: What was the genesis of Mint Exchange?Harpal Sandhu: A lot of people don’t realise that the derivatives markets in cryptoassets is actually quite a lot larger than the physical market. Because of this, we were speaking to a lot of FX brokers, people who were trading large amounts of crypto and CFDs, and they were having problems trying to hedge those positions because, unlike FX they can’t go to prime brokers or prime-of-primes in order to access liquidity, so there’s very few places that these firms can go in order to hedge their crypto exposures.
Galen Stops takes a look at the new launch from Elwood Asset Management that is targeting institutional investors wanting exposure to digital assets – without holding cryptocurrencies.London-based Elwood Asset Management, which is backed by Brevan Howard co-founder, Alan Howard, has partnered with Invesco to launch its first product aimed at investors looking for exposure to digital assets, the Invesco Elwood Global Blockchain UCITS ETF.The central problem identified by staff at Elwood prior to this launch is that currently there is a distinct lack of ways for institutional investors to gain exposure to digital assets. Right now, these firms can either buy cryptocurrencies – such as bitcoin – or invest in a venture capital fund, both of which can be problematic for institutional investors given the liquidity and regulatory issues surrounding cryptocurrencies and the limitations dictated by firms’ investment mandates
Gavin Wells is leaving Digital Asset, where he has served as head of Europe, based in London. He is due to leave the firm next month, having joined in mid-2016. Wells had previously been at LCH Clearnet (LCH), where he was global head of ForexClear. He joined LCH in 2008 and led the team that designed and implemented the ForexClear service, which was launched in March 2012. Prior to LCH, Wells was at Citi, where he was a managing director in the FICC business. He spent 15 years at Citi in a variety of roles across FX trading, e-commerce and IT.
Galen Stops takes a closer look at the distributed ledger technology solution that HSBC has deployed for settling FX transactions.One of the long-standing accusations levelled against distributed ledger technology (DLT) within financial services is that it is a solution looking for a problem, an accusation that appears to have gained some weight over the past few years given the vast disparity between the initial level of hype around this technology and the actual implemented use cases for it.Which is why it is significant that HSBC recently announced that it has settled more than three million FX transactions and made more than 150,000 payments worth $250 billion using DLT. If this announcement caught FX market participants by surprise, this is probably because this DLT solution, called HSBC FX Everywhere, has thus far only been used to orchestrate payments across HSBC’s internal balance sheets.