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BitGo Introduces Institutional Crypto Lending Service

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The world of crypto has developed at a breakneck pace over the past few years, and in a new development, cryptocurrency firm BitGo has announced the launch of its own crypto lending service. In recent times, the crypto lending industry has grown at a decent pace, but there is still room for a lot of growth.

Key Expansion

The announcement from BitGo is an important one and could usher in a new era in this niche space in the crypto sphere. The company claims to handles 20% of all transactions that are conducted through Bitcoin, and the service is going to be launched today.

The company conducted a beta test spanning over a period of several months, and it seems, it is now good to go. BitGo is aiming to create a crypto lending service that is similar to services that are available in traditional markets, according to the head of financial services at BitGo, Nick Carmi. The lending service is going to offer loans that are fully collateralized, and in addition to that, there is going to be detailed reporting for each client.

>> Dogecoin (DOGE) Gets Support from Tesla CEO Elon Musk

Carmi also stated that the business that has been created by the company is not going to be a run-of-the-mill business interested in small margins and high volumes. He added, “We are building deep relationships with our clients to drive value for them and to create a long term, sustainable business.”

However, the most important thing to note about this product is the fact that it is only going to be open to institutional traders, and the company has no plans to make it available to non-institutional traders. Carmi is a veteran of Wall Street and stated that a service of this kind is a first for BitGo as well.

Featured image: DepositPhotos © iqoncept

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Ripple Plans to Relocate to Japan Amid Unfavorable Regulations in the U.S.

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Ripple is planning a Japan move due to poor U.S. regulations. Other considered locations include the UK, UAE, Singapore, and Switzerland. 

Blockchain payment services company Ripple Labs Inc may relocate to Japan from the U.S. due to a lack of regulatory clarity. Apart from Japan, the company has also shortlisted some other countries for relocation. Notably, Japan is the most likely country that Ripple may move to if the blockchain firm leaves the U.S.

Ripple Eyes Japan as Potential Destination

According to a Bloomberg report, the relocation plan was revealed by Ripple CEO Brad Garlinghouse. The CEO also mentioned three other potential destinations for the blockchain firm. The other likely destinations include Switzerland, the United Arab Emirates, and the United Kingdom.

The CEO explained the reason for choosing the shortlisted countries:

“The common denominator between all of them is that their governments have created a clarity about how they would regulate different digital assets, different cryptocurrencies.”

Garlinghouse also referred to the lack of regulatory clarity on cryptocurrencies in the U.S. He said that the U.S. government is yet to decide whether digital assets are commodities, currencies, properties, or securities.

Over time, Ripple has been in a legal battle with investors. The investors claimed that Ripple illegally issued XRP as a security.

Speaking further in another interview with Bloomberg Television, Garlinghouse expressed his desire for Ripple to remain in the US but with regulatory clarity. As noted by the CEO, regulatory clarity in the US will encourage the blockchain firm to invest and grow its business in the country.

Ripple’s Destination Preference

In addition, Garlinghouse revealed the reason behind shortlisting Japan as the most likely country for relocation. He said that the country has created “an environment for a very healthy market to develop.”

In 2017, Japan acknowledged cryptocurrency, with the country introducing a registration system for digital assets. At that time, 11 cryptocurrency exchanges initially registered and got approval from the Financial Services Agency (FSA).

Furthermore, Ripple also has a relationship with the Japanese company SBI Holdings. Reinforcing the consideration to move Ripple to Japan, Garlinghouse added:

“Japan is one of our fastest-growing markets, in part because we have key partners like SBI. I have spoken to the SBI team about the fact we are looking at.”

According to a survey by Bitmax, Ripple crypto-asset XRP is getting more recognition in Japan. As noted in a tweet by Bitmax, Japanese investors prefer XRP to Ethereum.

On the 23rd of October, CNBC reported that Ripple is also eyeing London as a new location for its blockchain firm. Unlike the U.S., the UK Financial Conduct Authority (FCA) considers XRP a currency and not a security. With the FCA clarifying that XRP is not a security, Garlinghouse said it would be “advantageous to Ripple.” He said the FCA’s declaration means RIpple is safe to operate in the UK.

Before now, Ripple executive chairman Chris Larsen had said that the firm may move its headquarters outside the U.S. Larsen revealed the relocation to Fortune in a virtual interview. At that time, the chairman mentioned Singapore and the UK as new possible destinations for Ripple.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.





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BitMEX Rides on New Futures Listings to Dive Deeper into DeFi 

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BitMEX plans to offer futures contracts for DeFi projects Yearn.finance (YFI), Polkadot (DOT), and Binance Coin (BNB).

The Seychelles-based BitMEX exchange said via its blog post on Friday that it plans to launch three new Altcoin/USDT underlying quanto futures contracts. Yearn.finance (YFI) – an Ethereum-based token governing the Yearn.finance platform — will be the first DeFi token to be added and then later Binance Coin (BNB) as well as Polkadot‘s (DOT) native token.

Through the new quanto futures contract, BitMEX traders will comfortably hedge their risk exposure to BNB (Binance Chain’s native coin, which powers the Binance ecosystem). Popularity has been increasing amongst Polkadot developers this year prior to the anticipated launch of PolkaBTC in 2021.  

In the post, BitMEX said:

“These three contracts aim to provide our users with quality coverage of highly liquid products.”

By October 30th at 4:00 UTC, trading will begin since, at that time, the exchange would have finished adding all these three altcoins.

Fixed Bitcoin Multiplier Necessary

Ownership of a fixed asset of the token being traded like Tether’s USDT is a requirement for traders under traditionally margined contracts. However, these new BitMEX contracts are unique since traders are able to post margin in Bitcoin (BTC), and any profits or losses made whenever the contract price changes will be informed of Bitcoin.

“As with all quanto products, these contracts have a fixed Bitcoin multiplier regardless of the underlying Altcoin price. This allows traders to long or short each coin without needing to hold the specific coin or USDT. Traders post margin in XBT, and earn or lose XBT as the future’s price changes.” BitMEX said.

BitMEX also disclosed that it might include other more altcoin product listings before the year ends, but it didn’t hint which pairs will be unveiled next. Nevertheless, it stated that it would put much focus on decentralized finance which recent has become a big interest for most crypto investors.

Acceleration of Know Your Customer Mandate

The announcement has emanated only some days after BitMEX has also announced that it will be accelerating its Know Your Customer program. BitMEX gave all platform users up to November 5th, 2020, at 00:00 UTC to be fully verified. Users who would not have completed the KYC requirement and get verified will be unable to open new positions and even withdraw their funds from December 4th, 2020, at 00:00 UTC.

BitMEX’s acceleration of its mandate to verify all its customers’ identities was a response to charges regarding facilitating unregistered trading that the U.S. government leveled against it.

Adjustments in Quanto Futures Contracts

Last month, BitMEX announced the listing of four new Quanto Futures contracts for Chainlink (LINK), Tezos (XTZ), EOS (EOS), and Cardano (ADA). All these altcoins were paired with the Tether (USDT) stablecoin. Additionally, traders do not need to hold USDT or any specific coin to long or short each coin since the new listings have a fixed Bitcoin multiplier just like other Quanto products.

Before the announcement, BitMEX decided to remove six expiring six altcoin futures markets, namely Monero (XMR), Zcash (ZEC), Ethereum Classic (ETC), Stellar (XLM), NEO (NEO), and Dash (DASH).

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James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then.
An author with experience writing for tech, digital, and cryptocurrency blogs!



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Filecoin Upgraded Network Allows Miners Claim 25% of Block Rewards

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The latest Lotus 1.1.0 network software upgrade enables Filecoin miners to access 25% of mining rewards immediately with no vesting.

As reported by The Block, Filecoin‘s network lead Molly posted on Wednesday a downloadable Lotus 1.1.0 software upgrade in the project’s Slack channel. Participants who want to continue operating in the decentralized storage network would have to comply since this is a mandatory upgrade.

She posted the following in the channel:

“You must upgrade before epoch 170,000 (Thursday Oct 22 at ~22:40 UTC), or you will lose sync with the chain”.

On Thursday evening EST, the network reportedly reached the block height of 170,000.

FIP-004 Upgrade Enables Miners to Receive 25% Immediately 

At block height 170,000, Filecoin activated the FIP-004 change, which it emphasizes its miners to update. As per the post, 25% of block rewards received immediately without vesting will help miners to improve their ability in reinvesting in FIL (the network’s native cryptocurrency).

Over the last 24 hours, Filecoin miners produced around 150K FIL. If that rate is applicable under the new system, miners will receive daily block rewards amounting to over 40,000 FIL. While that is good, the challenge that the company would face is how much out of the immediately released FIL are miners willing not to sale on the markets but re-pledge so that they can enhance their computing power.

Upgrade Solves Miner Liquidity Issue

Earlier this week, a couple of major Filecoin miners halted their mining growth plans from the time the network’s mainnet officially went live. The miners wanted Filecoin’s economic model revised since the amount needed to begin mining was hefty. So, they collectively hesitated to add more of the coins to the decentralized storage network to overall slow down the network’s growth rate.

For sealing 32 gibibytes (GiB) of data into effective storage mining power, miners require to pledge 0.1901 FIL as collateral under Filecoin’s current design as per Filecoin’s blockchain explorer.

Before the implementation of FIP-004, block rewards were not released to miners immediately but vested linearly over a period of 180 days. Now, the rewarding process is more motivating as miners are entitled to receive 25% immediately and wait for the rest 75% that will still be vested in a period of six months.

Miners Are Now Motivated to Pledge

The revision is a response to the organization behind Filecoin Protocol Labs put forward to address miners’ liquidity issues complaints raised against the current economic model. As a result of the software revision, circulation will be adequate and price more steady since miners are now more motivated to pledge their FIL for mining future rewards making the process to reach equilibrium faster. With over 13 million FIL that miners have so far pledged as initial collateral, there are currently around 19.3 million FIL in circulation as per data from CoinGecko.

Filecoin is a peer-to-peer network built on the InterPlanetary File System (IPFS) distributed file system that enables users to use Filecoin tokens (FIL) to store and share data. Protocol Labs, an open-source research and development firm, developed both of these projects.

Altcoin News, Blockchain News, Cryptocurrency news, News

James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then.
An author with experience writing for tech, digital, and cryptocurrency blogs!



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