Fintech to invest $1b into blockchain this year
Financial and technology firms are expected to invest more than $US1 billion to bring blockchain technology to capital markets in 2016. That’s according to a new survey from Greenwich Associates, where a majority of participants said blockchain has the potential to change markets within the next five years. The 134 interviewees, including executives at banks, exchanges, asset managers and blockchain technology companies, said the main obstacle hindering the technology’s widespread use was a “vested interest” in legacy systems. “The financial sector will continue to put its weight behind blockchain this year,” Richard Johnson, vice president for Greenwich’s Market Structure and Technology group, said in the report. “Blockchain is beginning to […]
Blockchain more than hype: Nikko AM
Speaking on a panel at the Bloomberg buy-side forum, Nikko Asset Management managing director Sam Hallinan described blockchain as “the new facilitator”, one that is set to drastically improve efficiency in the sector. “It could be deemed hype, but it could also be the biggest change to asset management in years,” he said. Blockchain’s capacity to list and reconcile transactions and trades represents a marked shift from traditional methods, which rely on several phonecalls and paperwork, Mr Hallinan said. “The current method of reconciling trades hasn’t changed in 40 years,” he added. According to Mr Hallinan, the change to retail market interaction triggered by robo-advice is significant, and he noted […]
ASX spends $9m to boost stake in blockchain company
The Australian Securities Exchange has forked out an extra $9.5 million to increase its stake in blockchain company Digital Asset to over 8 percent. The stock exchange in January announced it had paid $14.9 million for a 5 percent stake in the US-based fintech firm. The money was also intended to help fund the development of a new post-trade platform for the ASX based on distributed ledger technology. At the time the ASX said it had the potential to buy further equity if it chose. It today said it had taken up that option and splashed an extra US$7.1 million (A$9.5 million) to increase its stake to 8.5 percent. Digital […]
Ethereum, rival to bitcoin, gains traction
With a rising market value and a roster of high-profile patrons, Ethereum in recent months has become the next hot thing in cryptocurrencies. Ethereum is an open software platform, comprising a currency called ether, a public “blockchain” ledger for keeping track of transactions and tools for building so-called smart contracts that automatically make payments when their terms are fulfilled. Anyone can develop new applications that make use of its code. More ambitiously, the currency’s inventors and users are revolting against the growing centralisation of the internet under big companies like Google and Facebook by creating financial structures that can run themselves. Much like its older cousin bitcoin, however, ether is […]
ASIC enters fintech partnership with Singapore
ASIC has signed an Innovation Functions Co-operation Agreement with the Monetary Authority of Singapore (MAS) aimed at “helping innovative businesses in Singapore and Australia in their foray to the respective markets”. The agreement will enable fintech businesses in Australia and Singapore to “establish initial discussions in each other’s market faster and receive advice on required licences, thus helping to reduce regulatory uncertainty and time to market”, a statement by ASIC said. To qualify for the support offered under the agreement, businesses need to meet the eligibility criteria of their ‘home’ regulator, the statement said. “Once referred by the regulator, and ahead of applying for a licence to operate in the […]
Bitcoin hits two-year high
The price of the digital currency bitcoin hit a two-year high yesterday, trading above $US700 for the first time since 2014, after it jumped 21 per cent over the weekend. The surge came days before an unusual event called the “halving”, an adjustment to bitcoin’s protocol designed to control the creation of new coins. The last time the currency traded at this level — as high as $US719 yesterday, according to data provider CoinDesk — was February 2014, when it was coming down from its December 2013 high of $US1147. Bitcoin, launched in 2009, is a digital currency that runs on a decentralised network of computers and isn’t backed or […]
Global regulators attuned to blockchain risks
The use of blockchain in financial services would need to be carefully regulated with access restricted to only approved participants and institutions may be required to use kill switches to stop computers automatically executing in times of stress. Greg Medcraft, who has just relinquished the chair of the International Organisation of Securities Commissions (IOSCO), told The Australian Financial Review that blockchains must be able to operate with each other and the financial services companies that use them will have to stand behind the technology in case it fails. Mr Medcraft was commenting on the principles guiding global regulators’ assessment of emerging blockchain technology which have been set out for the […]
Bitcoin available over the counter at a newsagency near you
Two Australian tech start-ups are launching an over-the-counter platform for selling Bitcoin making it available to everyday consumers and providing online retailers and the newsagents offering the service more income streams. It means Australians will be able to buy Bitcoin over the counter with cash for the first time. The technology is being deployed to about 1200 newsagents nationally effectively making them Bitcoin bank outlets and giving many in the struggling industry a new strand to diversify their revenue. There are currently Bitcoin exchanges in Australia which facilitate online transactions and transfer money but no over-the-counter solution for cash to buy Bitcoin. A 4 per cent fee applies to transactions […]
