- By Pierre-Alexandre
May 15th, 2019
Day 1 of the Consensus 2019 conference kicked-off with some jam-packed news surrounding the regulatory developments as well as the new innovations taking place in the cryptocurrency and blockchain industry.
Day 2 on May 14 also saw similar major announcements coming from crypto and blockchain companies as well as traditional financial institutions.
BitGo Proposes Off-Chain Settlement Service for Institutional Clients
BitGo, the provider of crypto custody solutions, announces a new clearing and settlement service only for institutional clients. The crypto custodian will offer this service only to the regulated clients of the BitGo Trust Company.
BitGo ensures that its service will be “fast, complaint and secure”. BitGo further plans to reduce the counterparty risks while acting as the custodian on both sides.
Besides, the crypto assets will never leave the BitGo custody when being transferred. Under this new service, a transfer between two parties will be recorded but the assets will remain in BitGo’s cold storage at all times. All the trades shall be settled “off-chain” with the transaction getting reconciled to the appropriate blockchain upon withdrawal.
Thus BitGo’s new service will help to substantially reduce counterparty risk. In addition, BitGo notes that its service will help to mitigate accidental compliance infringement, reduce security risks, thus providing investors the facility of better capital allocation.
TD Ameritrade cites Growing Investors Interest in Bitcoin Futures
America’s stock brokerage firm TD Ameritrade said that the volatility in Bitcoin price hasn’t much affected the demand for Bitcoin futures. The company rather cites growing interest in this Bitcoin investment vehicle. It notes that investor participation will grow immediately as more companies offer the trading facility for Bitcoin futures contracts.
Against the popular belief that crypto investments majorly attract only millennials, the company notes that even old retailers are showing intense interest. Besides ‘pure retail’ clients, investment advisors are showing a huge interest in Bitcoin futures, said TD Ameritrade executive vice president, Steven Quirk.
According to industry reports, several institutional players are waiting on the sidelines to invest heavily in crypto markets. Institutions are awaiting some more regulatory clarity to emerge on investment vehicles like the Bitcoin ETF.
Aries - Hyperledger’s blockchain-based Identity Management System
Hyperledger, an open source collaborative project for cross-industry blockchain technologies, has announced its new open source framework for identity management dubbed Aries.
The official announcement notes that the new Hyperledger project Aries enables the exchange of blockchain-based data through a shared infrastructure of tools. In different scenarios, it also supports peer-to-peer messaging while simultaneously facilitating interoperable interaction between different distributed ledger technologies (DLTs) and blockchain networks.
Aries plans to give users better control over their identity information by eliminating any middle man. It basically involves only the user and their private keys.
Hyperledger believes that Aries will be helpful in building different government identity projects. Besides, the self-sovereign identity tolls offered by Aries helps to quickly exchange permits and credentials in tasks involving data sharing between different government bodies.
Blockchain to Facilitate U.S. Tech Independence Says Ripple Executive
Speaking at the Consensus 2019 conference, Ripples’ Director of Regulatory Relations Ryan Zagone noted that blockchain will help the U.S. on the self-reliant on technology innovation without relying on foreign players.
Zagone stated: “There is a broad discussion in Washington around 5G being dominated by foreign firms and the U.S. being reliant on foreign technology and foreign expertise… With blockchain and crypto, I think there's a recognition now that these will be part of our future infrastructure… It’s important both for national security and from an economic perspective, that the U.S. is a leader in that.”
However, for this to happen, crypto companies and regulators will have to come to common grounds introducing the right regulatory framework without stifling innovation.
Joseph Lubin and Jimmy Song Deal a Huge Bet
Ethereum co-founder Joseph Lubin and Bitcoin developer Jimmy Song have once again locked horns over the future of decentralized applications (DApps). While Lubin believes that the future of DApps is bright, Song ridicules them by saying that DApps are just a vulnerable tool to raise money from greedy FOMO people or gullible investors.
The two crypto leaders have recently sealed a new bet. If Ethereum-based DApps continue to do great by 2023, Song will pay Lubin 810 ETH tokens. By ‘great’ it means that there must be 15 unique apps running on the Ethereum-blockchain network achieving 10,000 daily active users and 100,000 monthly active users for a minimum of six calendar months in a given year until 2023.
On the other hand, if BTC does much better and Ethereum fails to deliver, Lubin will pay Song 69.74 BTC tokens.
Song explained: “If Joe is right, then presumably ether will be much more valuable than bitcoin. If I am right, bitcoin will be much more valuable than ether. It’s a maximum-pain kind of bet. Skin in the game, that’s the idea.”