HyperLinq : Weekly Digital Asset Digest 18

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Rohan Raman
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The HyperLinq Weekly Digest is the one-stop source for the HyperLinq community to access relevant news involving digital assets, where we essentially outline key industry updates that our members may have missed. We are always open to suggestions and feedback so please do not hesitate to let us know what you think!


Binance CSO Confirms ‘Preliminary’ Talks to List Facebook’s Crypto Libra : Wes Messamore | CCN.com

Speaking with Finance Magnates, Binance strategy officer Gin Chao said the world’s largest cryptocurrency exchange "would probably want to list" Facebook’s Libra coin on its marketplace. Chao said that Binance has been in talks with Facebook about the potential listing. Though he said discussion is, "very much at a preliminary stage". The revelation is some interesting news out of the FinTech Junction Conference in Tel Aviv, where journalists had a chance to sit down with fintech leaders and discuss the future of the industry. Take Tether as an example. Tether is supposed to be fixed to the USD at a 1:1 ratio. It spent half of last October trading below $1. In a CCN interview with a former New York State Department of Financial Services administrator earlier this month, the state cryptocurrency regulator praised Libra, but indicated Facebook hasn’t made clear yet exactly how it’s going to work out maintaining Libra as a stablecoin. But that shouldn’t stop Binance. From the perspective of its global business strategy, adding more digital asset trading pairs like BTC/LBR to Binance’s massive and always-growing marketplace is a business decision the company shouldn’t pass up.

Goldman Sachs CEO Hints Bank Might Launch ‘JPM Coin’-Like Crypto : Daniel Palmer | CoinDesk

Goldman Sachs may ultimately take part in the crypto disruption of finance, according to its CEO, David Solomon. In interview with French news source Les Echos on Friday, Solomon said the bank absolutely could follow JPMorgan Chase in launching a cryptocurrency. Asked about potential involvement with Facebook’s Libra cryptocurrency project, Solomon refused to comment on any discussions the bank may have with clients. However, he said that he found the principle interesting. Tokenization and stablecoins are "the direction in which the payment system will go". That said, it’s too early to say which platform might ultimately win out, according to the CEO. "They wonder how it will work and are very attentive to payment flows", he said. After saying that cryptocurrencies would only have value in a dystopian economy back in January, JPMorgan revealed a month later that it was in fact working on one of its own. JPM Coin will initially run on top of Quorum, the private version of ethereum the bank developed in conjunction with EthLab, and could be used to settle a portion of transactions between clients of its wholesale payments business in near real time.

JPMorgan to Start Customer Trials of Its ‘JPM Coin’ Crypto : Daniel Palmer | CoinDesk

JPMorgan Chase is to start trials of its «JPM Coin» cryptocurrency in conjunction with corporate clients. According to a report from Bloomberg Japan on Tuesday, Umar Farooq, the investment bank’s head of digital treasury services and blockchain, said that customers would trial the technology with the ultimate aim of speeding up transactions, such as payments between firms and bond transactions. The trials are being conducted on the assumption regulatory permission will ultimately be granted, according to Bloomberg. JPM Coin will function as a stablecoin, with fiat cash being deposited at the bank in exchange for the token, which can then be transferred via a permissioned distributed ledger. The recipient can later redeem the token for cash from JPMorgan. Initially linked to the U.S. dollar, the coin is expected to be extended to other fiat currencies in time. Discussing JPM Coin’s state of development, Farooq told Bloomberg in today’s report: «The technology is very good, but it takes time in terms of licensing and approval. It must be explained.» As well as inter-firm remittances, he said that the cryptocurrency could be used to settle bonds and commodities transactions.

Official Says Russia May Allow Crypto Trading in Upcoming Legislation : Daniel Palmer | CoinDesk

As Russia’s cryptocurrency bill slowly inches forward, a government official has hinted at what may lie ahead when the legislation is finally passed. According to a report from local news source Interfax.ru, Deputy Finance Minister Alexei Moiseyev told journalists on Friday that among the options currently being discussed is to allow the buying and selling of cryptocurrencies. Moiseyev said that the finance ministry had met with the Russian central bank and the Federal Security Service, the nation’s security agency, to discuss the bill. "There is a range from prohibition to the possibility of purchase", he explained. "Like with foreign currency, it would be possible to buy and sell , but impossible to use them for payments". According to the report, Anatoly Aksakov, head of the Duma Financial Market Committee, has said that Russia must adopt a bill on cryptocurrency before the end of this year in order to comply with recommendations from international watchdog, the Financial Action Task Force. In related news, FATF announced new standards on Friday that include a controversial requirement that "virtual asset service providers", including crypto exchanges, pass information about their customers to one another when transferring funds between firms.

G20 Policymakers to Discuss Regulations Proposed by Crypto Industry : Kevin Helms | News.bitcoin.com

World leaders and policymakers are gearing up for the G20 summit in Osaka, Japan, which will take place on June 28 and 29. Concurrent to this event, another summit called the Virtual Asset Service Providers summit or V20 will also take place in Osaka. It is organized by international crypto industry associations with strong support from industry participants. Earlier this month, the G20 finance ministers and central bank governors met and discussed crypto asset regulations, reaffirming their support for the standards set by the Financial Action Task Force which recently released its guidance for virtual assets and virtual asset service providers. Other associations which will also be represented include the Fintech Association of Hong Kong, Global Digital Finance, Hong Kong Blockchain Association, Korea Blockchain Association, and two Japanese crypto associations — the Japan Blockchain Association and the Japan Virtual Currency Exchange Association. Representatives from major cryptocurrency exchanges, media outlets, law firms, and other crypto service providers will also participate. They include Bitfinex, Circle, Coinbase, Huobi, Kraken, Okcoin, Coins.ph, B2c2, Bitcoin.com, Bitcoin Australia, Crypto Garage, Deloitte, Diginex, Norton Rose Fulbright, Sentinel Protocol, Anderson Mori & Tomotsune, and Pwc. "As a former regulator, I recognise how important it is to identify a balanced solution that implements the recommendations of the FATF while also building the opportunity for business", he opined. News.Bitcoin.com recently covered some of the concerns. These consequences will ultimately reduce "the prevalence of exchanges themselves, which are currently one of the most effective forms of prevention and partnership to law enforcement working in the virtual asset sector", the V20 added. The group outlined some proposals on its website.

Facebook’s Crypto Plans Look a Lot Like the Ones the SEC is Trying to Stop : Francine McKenna | MarketWatch

A bold plan to launch a new cryptocurrency by Facebook and partners looks a lot like the plans of another firm the Securities and Exchange Commission is now suing to stop. Libra is a "global, digitally native, reserve-backed cryptocurrency built on the foundation of blockchain technology", according to the Switzerland-based not-for-profit membership organization formed to run the initiative, Libra Association. The Libra Association says it will "be raising money in a private placement to help jumpstart the ecosystem and drive adoption". "Ultimately, Libra aspires to become an alternative payment system for real world goods the way Kik Interactive, a Canadian social-media messaging company that was sued by the SEC on June 4 for raising $100 million allegedly without registering the offering, sought to become the go-to currency for digital assets. That means the Libra Association may be heading down the same regulatory problematic path as Kik and Kin". says Rosenfeld. The Libra Association members are the only ones able to create or mint and destroy or burn Libra coins. Authorized coin resellers have to purchase those coins from the association with fiat assets such as dollars or euros to fully back the new coins. Authorized resellers will always be able to sell Libra coins to the reserve at a price equal to the value of the basket, the whitepaper says, so the Libra Reserve is intended to act as a "buyer of last resort" governed and constrained by a Reserve Management Policy. The Libra Association says in a post on its website that it will "continue engaging with regulators, policymakers, and experts to solicit feedback and ensure that this global financial infrastructure is governed in a way that is reflective of the people it serves". Facebook’s Sandberg also told Bloomberg TV on June 19, «We know this is a heavy, heavily regulated space. We need to talk to people, meet with people and that’s what we’re doing and we are then going to launch.

SEC-Registered Clearing House Brings Crypto Trading to 5 Million Clients : Marie Huillet | CoinTelegraph

American financial clearing and execution company Apex Clearing and its crypto investment subsidiary Apex Crypto have launched a new trading platform for broker-dealers and financial advisors to help their clients trade crypto more effectively. As of today, over 5 million current Apex Clearing clients can thus access the Apex Crypto platform, which supports trading of four major cryptocurrencies: bitcoin, bitcoin cash, ether and litecoin . The press release places a strong emphasis on the new platform’s apparently high throughput and scalability, claiming that Apex’s systems enable the opening of tens of thousands of accounts within a single day, allowing traders to take advantage of surges in crypto trading volumes. In a statement, Apex Clearing CEO has said that the clearinghouse seeks to "fundamentally change" the way investors and enterprises think about their finances, proposing that:

"Our integration with Apex Crypto helps financial firms give their clients a streamlined way to invest in a wider variety of asset classes in a way that feels part of – not separate from – the rest of their investment portfolio."
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Rohan Raman

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