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Cryptocurrency Morning Brief

Jun 21, 2018

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  • Litecoin futures will be launched tomorrow in the UK. The futures will be dollar denominated and allow investors to trade in futures contracts with Litecoin as the underpinning collateral. Maturities available for trading include weekly, monthly and quarterly. Just a month ago, the UK based platform, Crypto Facilities, launched Ethereum futures. The platform will now feature futures contracts on Bitcoin, Ripple, Ethereum and Litecoin. Crypto facilities believes that futures contracts will increase price transparency, liquidity and efficiency
  • Spanish banking group BBVA and Spanish energy company Repsol have signed an agreement to develop blockchain solutions for corporate banking. The banking group and Repsol have already created the Hyperledger. BBVA is looking to conduct the entire loan process using blockchain – from negotiation of terms to signing. This April, the banking group issued a corporation loan worth EUR€75mm using distributed ledger technology (DLT). The use of DLT reportedly reduced the processing time from days to a few hours.
  • Robinhood is reported to be negotiating with US regulators on becoming a bank, complete with traditional services like savings accounts. This year, the firm released cryptocurrency mobile trading and the firm received a USD$5.6bn valuation. The firm has been reported to be intalks with the Comptroller of the Currency. Additionally, there has been speculation that the firm may partner up with an existing institution rather than completing this process alone.
  • A South Korean bill has been submitted which imposes new obligations on the country’s cryptocurrency exchanges. The country’s top regulator, Choi Jon-Ku – Chairman of the Financial Services Commission (FSC), stated Wednesday that the country needs to make the cryptocurrency transaction system stable to better protect traders. He continued by noting that an amendment to the Act of Reporting and Using Specified Financial Transaction Information has been submitted to the National Assembly to achieve this goal. If the revised bill passes, cryptocurrency exchanges will report to the Financial Intelligence Unit (FIU) and be subject to investigations and new regulations.
  • The Winklevoss twins, along with three other partners have been awarded a patent to provide an exchange traded product (ETP) holding digital math-based assets. Additionally, the group will be able issue shares tied to the ETP. Last month, the Winklevoss twins were awarded a patent for a system that settles transactions for ETPs tied to cryptocurrencies. This is the seventh cryptocurrency related patent that the brothers have been awarded. However, the Winklevoss twins were denied by the SEC last year to list a bitcoin exchange-traded fund (ETF).
  • Nasdaq CEO, Adena Friedman, recently spoke and said that initial coin offerings (ICOs) pose “serious risks” for retail investors. The CEO spoke at the Future of Fintech conference. She stated that the ICOs can seriously defraud retail investors due to the lack of public information, transparency and accountability. She also agreed with the SEC’s position that ICOs should be considered security offerings.