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Wells Fargo to Pilot Dollar-Linked Crypto for Internal Settlement

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U.S.-based financial giant Wells Fargo is developing a U.S. dollar-linked cryptocurrency that will run on the firm’s first blockchain platform.

Dubbed Wells Fargo Digital Cash, the stablecoin will be used in a pilot initially for internal settlement across the company’s business.

The firm said in a press release on Tuesday that the digital token will enable to settle internal cross-border payments across its global network. Its international locations will also be able to move funds between each other using the token.

As banking services become increasingly digital, Wells Fargo sees “a growing demand to further reduce friction regarding traditional borders, and today’s technology puts us in a strong position to do that,” said Lisa Frazier, head of the Innovation Group at the company.

Wells Fargo says its proprietary digital ledger tech (DLT) platform will enable it to move money in “near real-time” and “without impact to the underlying account, transaction postings or reconcilement infrastructure.”

It will also allow the firm’s international locations to move

funds outside normal operating hours, remove the need for third-party payment intermediaries and cut the time and costs associated with such transactions.

The pilot, slated for next year, will start with transfers of U.S. dollars, but is expected to expand to other currencies. Eventually, it also aims to reach all Wells Fargo branches worldwide.

Frazier said:

“We believe DLT holds promise for a variety of use cases, and we’re energized to take this significant step in applying the technology to banking in a material and scalable way. Wells Fargo Digital Cash has the potential to enable Wells Fargo to remove barriers to real-time financial interactions across multiple accounts in multiple marketplaces around the world.”

Wells Fargo has previously launched other blockchain projects, including a banking prototype and a trade finance platform aimed at the cotton market. It’s also invested in blockchain finance startup Axoni.

Over and above internal settlement, the firm says it plans to use its DLT platform for “multiple” other applications.

source.coindesk.

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Tyrone Ross on Why Financial Advisors Are Taking Notice of DeFi

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Financial advisor and crypto advocate Tyrone Ross joins The Breakdown for a discussion on financial advisors, DeFi and the most important company in crypto.

One man. Three piping hot takes. In this special interview episode of The Breakdown, financial advisor and crypto advocate

Tyrone Ross shares his thoughts on:

  • Why financial advisors are the key to bringing in the next wave of crypto investors
  • Why DeFi is an even bigger deal than you think – and not just to the hackers and entrepreneurs building on it
  • Why Square’s Cash App – not Binance, not Coinbase, not anyone else – is the most important company in crypto

Check out more episodes of The Breakdown on CoinDesk.

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Crypto Dealer SFOX Adds New Service for Fund Managers to Invest in Digital Assets

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San Francisco Open Exchange unveiled Thursday its new “Separately Managed Account Solution” to help investors create their own crypto trading strategies.

The service enables fund managers to manage individual securities in a single account for their clients in the traditional financial services industry. However, the company claimed the new service has not been available to those who invest in digital assets.

According to a blog post from SFOX, the new service will allow fund managers to design and administer personalized crypto trading strategies for their clients.

The company said crypto investors can also use its tax-reporting products to take taxes into consideration when making portfolio

management decisions.

The service caters to crypto hedge fund managers, traders and service providers as well as traditional asset managers who invest in crypto assets.

In May, the crypto dealer announced a partnership with New York-based M.Y. Safra Bank to provide its traders with deposit accounts backed by the Federal Deposit Insurance Corporation (FDIC).

Founded in 2014, SFOX says it now serves more than 175,000 traders across the world and has processed over $11 billion worth of transactions.

Separately managed accounts as a financial service have been widely used by asset managers who work for institutional investors such as high net worth individuals and mutual funds. It allows people to manage portfolios more efficiently by putting different investments in one account.

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Deribit Takes On New Trading Tools to Capture ‘Exploding’ Options Market

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Amid increasing activity within the crypto derivatives market, software maker Trading Technologies (TT) announced Wednesday it would provide trading tools to users of leading crypto exchange, Deribit.

Included in the suite are advanced order types, charting and analytics as well as access to a feature allowing users to create algorithms for bot trading.

TT users eligible to trade on Deribit will be able to access all listed products, including bitcoin (BTC) and ether (ETH) futures, perpetual and options contracts. Dutch-based (for another month) Deribit, founded in 2016, is now the fifth crypto-only exchange that TT supports, alongside BitMEX, CoinFLEX, Coinbase and Bakkt.

TT’s vice president of cryptocurrencies, Michael Unetich, said demand for crypto derivatives was strong in regions such as the U.S., Asia and Europe.

“We hope to provide trading access to the highest volume derivatives exchanges in the world. CME is one leading derivatives venue, while others are located in Asia.” Unetich said.

Trading Technologies creates professional trading software, infrastructure and data solutions for a wide variety of users, including proprietary traders, brokers, money managers, chartered tax advisors (CTAs), hedge funds, commercial hedgers and risk managers. Traditional financial institutions like Goldman Sachs; stock exchanges like the Johannesburg Stock Exchange; and Europe’s largest derivatives exchange Eurex also use the 25-year-old firm’s tools.

Exploding options market

Jehan Chu, co-founder and managing partner of Kenetic, a Hong Kong-based blockchain investment and trading firm said TT’s connection to Deribit was a “massive show of confidence” for the “exploding” options market. 

“TT’s long credible history and impressive user base combined with Deribit’s experience as one of the first crypto options platform is an exciting match that should significantly increase volumes over time,” Chu said.

Commenting on the Asia-Pacific region for retail investors, Chu also said the TT and Deribit partnership would “expand the options markets for Asian traders through a familiar and trusted platform.”

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