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 […]
Most published analysis of the legal consequences of blockchain forks has been underwhelming. Discussions often centre around the legal risks to miners and developers, questions of little relevance because of the general absence of contracts between users of public blockchains and the constellation of jurisdictions from which they operate. In other words, it will freeze in hell before anonymous developers based god-knows-where win a lawsuit against unidentified Chinese miners aggregated in a mining pool. I should add that several articles appeared to be advertorials by law firms looking for new business.
The comparison between blockchain technology and the early days of the Internet is one that is perennially made in articles and at industry conferences, but is it accurate or even helpful?
This was the question posed to Cristina Dolan, co-founder and COO of InsureX, and Adrian Patten, the co-founder and chairman of Cobalt, at the Forex Network Chicago conference.
“The Internet was a lot easier to deal with because it was a linear process: you had a database, there were users, you had a web interface and although you were still training people how to use the web interface, you could control that whole ecosystem that you put up, you just had to drive people to the page,” said Dolan.
One of the interesting characteristics of the cryptocurrency markets is that trading in these assets has predominantly been driven by retail players, with proprietary trading firms being the first institutional size firms to start getting involved.
So which firms are likely to enter the market next, and will they propel the mainstream adoption of crypto trading?
“Naturally a lot of prop desks are looking at the space in a discrete but very active way,” says Francisco Portillejo Hoyos, CEO of CRYPTALGO. “The other wave is that a lot of family offices are seeing a very nice diversification on their allocations.”
It is something of an attention-grabber when someone who builds solutions on distributed ledger technology (DLT) says, “We are not a blockchain company”, however that is exactly how Tim Grant, co-founder and CEO of DrumG, starts our conversation. “We are a company that builds on blockchains; not one blockchain, but the right one – we build ledger appropriate solutions,” he explains. “We would never say ‘our blockchain is better than yours’. What we say is ‘our ability to choose the right blockchain and build on it, is better than yours’ – there’s a significant difference.”
By Bob Bonomo, CEO, Blockchain Innovation Group and President, Bob Bonomo LLC
Blockchains are examples of distributed database technology, since they store transactional data across many computers rather than in a single, centralised system.
In traditional centralised systems, where services run or data is stored on a single server, there is no concern about data synchronisation: all the data is simply present on that one machine.
The distributed nature of blockchains improves data security, since the multiple copies of data make it extremely difficult and costly to tamper with or introduce forged transactions, while also increasing network reliability/uptime, since blockchains are resilient and continue to function if a manageable set of nodes become unavailable.
It’s early days, but Ethereum, essentially a decentralised, blockchain-based, world computer, is changing its consensus protocol from Proof of Work to Proof of Stake. Julie Ros speaks with a few crypto traders about what the key differences are between the protocols and what they think of Ethereum’s bold move.
Ethereum, the blockchain-based network that was proposed in 2013 and released in mid-2015 to provide a virtual “world computer” as the base layer for decentralised apps (DApps), has begun steps to move the methodology for confirming transactions from Proof of Work (PoW), whereby miners compete to unlock and upload blocks to the Ethereum blockchain, to a Proof of Stake (PoS) methodology, which establishes validators that stake an investment to participate.
AirSwap, a decentralised global network for Ethereum tokens, is rolling out a private, beta version of its new conversational OTC features today, August 15th.
AirSwap staff and partners gave product overviews and demos at a private event on August 8th at its Brooklyn loft, which featured presentations on the AirSwap Widget, the Developer Toolkit and a new conversational OTC product. Key partner firms also discussed integration and building on AirSwap.
The event kicked off with AirSwap advisor, VC and blockchain enthusiast, Bill “Yoda” Tai, giving an overview of AirSwap’s role in the evolution to frictionless, decentralised, peer-to-peer trading, discoverable by search.
In this week’s podcast Colin Lambert attempts to sound informative on all things crypto, while Galen Stops is informative on all things crypto. They also discuss the shift in FX trading from anonymous to disclosed channels and its impact on last look as well as the latest on pre-hedging from the Global FX Committee. There is also time for one to bang on about a correct prediction (to date) made at the start of the year and they also touch on “de-centralised” crypto trading platforms and realise it’s just like the FX options market in the 1980s.
In this week’s In the FICC of it podcast, Colin Lambert and Galen Stops discuss the Mark Johnson trial, pointing out that if the current verdict is upheld despite the ongoing appeal against it and ACIFMA’s decision to file an amicus brief in support of the appeal, it could have a very significant impact on both the Global FX Code and how the FX industry operates more broadly. They also look at why crypto regulation is unlikely to move as fast as some people in the industry would like, and why this might not be such a bad thing.