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Deutsche Bank Bond Tokenized on EOS Blockchain -dBond

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Deutsche Bank Successfully Tokenizes Bond on EOS Blockchain

This week, the open-source tokenization platform dBond celebrated the successful tokenization of a Deutsche Bank bond on the EOS blockchain. EOS has long been touted as a superior tokenization protocol and the accomplishment is a milestone for the entire EOS camp.

News of the strategy emerged via a dBond medium post. Notably, the post explained the concept was a first in the marketplace. Interestingly, Deutsche Bank had nothing to do with the tokenization. the dBond develop team figured out how to tokenize the bond without the need for the bank’s approval.

EOS

The EOS blockchain is the backbone bone of the entire project. In fact, the concept is possible only because the DUSD stable coin and the newly tokenized bonds both utilize EOS’s 4th generation blockchain which features robust smart contract capabilities.

Deutsche Bank Bond Tokenized on EOS Blockchain -dBond

EOS via CoinMarketCap

EOS made headlines just this week after developers released the Version 2.0 of the EOSIO protocol. The new protocol improves on the blockchain’s already impressive smart contract programming capabilities. It’s precisely these capabilities that made EOS a wise choice for the bank to consider.

SEC Settlement

Additionally, EOS recently settled with the SEC to the tune of a $24 million dollar fine for their 2017 ICO in which the company raised $4.1 billion in funding. The SEC alleged that EOS illegally offered securities during the ICO. Now, EOS is fully in line with regulators. In this manner, the platform is now ready to step into the tokenized securities and bond markets.

How it Works

According to the post, an investor purchases a USD-denominated bond. At this point, the new bond deposits into an escrow account. Then, thebondsacc contract requests the creation of an equally valued DUSD nominated tokenized bond. This new tokenized bond is locked up in a thedeposbank account for the required waiting period before a new dBond is issued as DUSD collateral.

Milestone

Tokenized bond issuance on the EOS blockchain is an important milestone for the firm. Currently, EOS ranks as the #8 cryptocurrency in terms of market cap on CoinMarketCap. The coin has a market cap of $2,659,051,489 (334,977 BTC) with a 24-hour trading volume of $1,673,947,931.

Deutsche Bank Looks Towards the Digital Economy

EOS continues to position its organization to play a pivotal role in the digitization of the economy. When you consider that the EU market is set for a huge expansion in the blockchain financial sectors, both EOS and dBonds is a step ahead of the competition. You can expect to see dBonds expand upon this concept in the coming weeks.

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David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

Blockchains

The Future is Bright for Bison Trails as Series A Nets $25.5M

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The Future is Bright for Bison Trails as Series A Nets $25.5M

Laying Tracks

Bison Trails, a company which specializes in developing and hosting secure blockchain based infrastructure, has recently announced the successful closure of their Series A.

The event saw the company bring in a total of $25.5 million from a series of investors.  These funds will provide a runway for the company, allowing them to continue developing their services.

The Backers

Bison Trail has provided information on where their funds were generated from.  They indicated that Blockchain Capital led the way, with the following companies also contributing unspecified amounts:

  • Kleiner Perkins
  • Coinbase Ventures
  • Collaborative Fund
  • A Capital
  • Coven
  • Sound Ventures
  • Initialized
  • Accomplice
  • Galaxy Digital
  • Notation

Founding Member

For those that follow the ongoing saga surrounding Facebook and their Libra project, the name Bison Trails might sound familiar.  That is because they are one of the founding members behind the project.

A major influence on their trajectory is, no doubt, their participation within the Libra Association.  Unlike various high profile companies, such as MasterCard, PayPal, and Visa, Bison Trails has not abandoned the project.

What’s Good for the Goose is Good for the Gander

With Bison Trails expected to play a pivotal role in the development of Libra, it only makes sense that another founding member of the project – Coinbase – has taken part in helping them succeed through their Series A.  This is a situation where what is good for Bison Trails, will benefit their peers.

Changing Sentiment?

While there was a period where high levels of disdain surrounded Libra, this has appeared to die down in recent weeks.  In fact, the most recent commentary to come out on the subject from a high ranking figure was positive in nature.  Secretary of the United States Treasury, Steven Mnuchin, had the following to say.

“I’m fine if Facebook wants to create a digital currency, but they need to be fully compliant”

While not a glowing endorsement, this is a far cry from denouncing the project.  Facebook has always known that they would need to adhere to regulations, and those in power seem to be accepting the fact that Libra will, at some point, see the light of day.

Commentary

Upon announcing the closure of their successful Series A, Bison Trails penned a short letter, detailing their state of affairs.  Below is a short excerpt, elaborating on their view of blockchain in the now, and the future.

“We’re entering a new phase in blockchain development and participation, one marked not by pure asset speculation, but by robust, usable, and scalable networks where stakers, voters, validators, investors, and many others actually participate in the growth of these communities. We believe we’re still at the very beginnings of this massive shift in how people participate in blockchain networks, and we plan to make blockchain participation as accessible, safe, and scalable as possible.”

Bison Trails

Operating out of New York, Bison Trails is a blockchain based tech platform, which was founded in 2018.  Above all, the company specializes in providing a means to run ‘secure infrastructure on multiple blockchains’, for those that need it.

CEO, Joe Lallouz, currently oversees company operations.

In Other News

Launching and completing a successful Series A is an important step for a company.  These capital generation events take place once a company has proven that they hold more than simply potential.  They have typically established modest levels of adoption, and find themselves at a juncture in which more capital is needed to continue along a positive growth trajectory.

The following articles detail a few of the more recent Series A events which have taken place by companies shaping the digital securities sector; one from each North America, Europe, and Asia.

Horizon Globex Eyes Growth through Series A

iSTOX Exchange Completes Series A Funding

Securitize Extends Series A to $30M in Investments

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Blockchains

Knabu to Utilize IdentityMind and Factom in Pilot Program

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Knabu to Utilize IdentityMind and Factom in Pilot Program

Pilot Program

It was recently announced, in a statement made to CoinDesk, that a trio of blockchain based companies will be taking part in an upcoming pilot program together. Factom, Knabu, and IdentityMind, will each play their respective roles in the pilot, which will test the viability for blockchain as a replacement traditional banking technologies.

In this alliance, Knabu will facilitate the pilot, while records are recorded on the Factom blockchain, with IdentityMind mind performing KYC and KYB checks.

Why?

The purpose of the pilot is based upon the elimination of efficiencies inherent to the banking system’s current method of doing things. These inefficiencies arise in the various functions still reliant upon manual completion – such as client onboarding measures, like KYC checks.

Knabu CEO, Gabrielle Patrick told CoinDesk that, “…the average cost of regulatory compliance for a bank is about 30% of its budget…We’re a blockchain-first company and felt that it was necessary to demonstrate the features that can remodel that.”

UK Banking Licence

While this endeavour is simply a pilot, it sheds light upon how Knabu will approach finance if successfully approved as a licenced U.K bank.

Knabu indicates that the goal of becoming a bank stems from, what can only be interpreted as, a shunning of the blockchain and DLT sectors by traditional banks. With companies worldwide involved in these sectors often being denied financial services, Knabu believes that they not only require, but deserve, an advocate that will serve them.

Commentary

In announcing the launch of this pilot program, representatives from each, Factom and Knabu, took the time to comment. The following is what each had to say on the development discussed here today.

Gabrielle Patrick, CEO of Knabu, stated,

“The purpose of the pilot is to start proving some of the efficiencies that blockchain brings – specifically as core infrastructure for a bank. The average cost of regulatory compliance for a bank is about 30 percent of its budget. We’re a blockchain-first company and felt that it was necessary to demonstrate the features that can remodel that.”

Carl DiClementi, VP of Product at Factom, stated,

“This allows us to be able to borrow the security that you get from the power of the bitcoin and ethereum blockchains to verify that your data is what you claim it to be.”

Yo-Yo Month

While the announcement of this pilot program is a very positive development, Factom has experienced negative news this month, as well.

Unfortunately, a large majority of the trading volume for their utility token, FCT or ‘Factoids’, took place on the popular cryptocurrency exchange, Poloniex. This is unfortunate, because it was recently announced by the exchange that they would be ‘spinning-out’ from Boston based, Circle, and that this would see the company cease offering its services for U.S. based clients. This move had a greater effect on FCT than most, as the token is listed on very few exchanges.

While this news was definitely not positive in nature, Factom remains a very interesting, and potential laden company, – as made evident through their continued relationships with government entities such as DHS, large grant programs, and now a, soon-to-be, U.K. based bank.

Knabu

Operating out of London, Knabu is a blockchain company which was founded in 2017. Above all, the team at Knabu is working to develop services to help ‘bank the unbanked’.

CEO, Gabrielle Patrick, currently oversees company operations.

Factom

Founded in 2014, Factom is a ‘blockchain innovations’ company, which maintains operations in Austin, Texas. Since their inception, Factom has managed to establish themselves as an industry fixture. This has been achieved through various impressive achievements over the years, which include partnerships with, not only government entities, but large private companies. Their efforts have also resulted in them being the recipients of high-profile grants, such as that from the Bill and Melinda Gates Foundation.

CEO, Paul Snow, currently oversees company operations.

IdentityMind

Based in Palo Alto, California, IdentityMind was founded in 2013. Above all, the company works towards developing, and providing, services aimed towards the prevention of fraud and nefarious activity.

CEO, Garrett Gafke, currently oversees company operations.

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CFTC Labels Ether a Commodity

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Ether is a Commodity

The crypto community got some exciting news this week after the Commodity Futures Trading Commission (CFTC) Chairman stated that Ether (ETH) is a commodity. The news follows similarly worded statements from SEC officials in the past.

The news came via an Oct 10 statement from acting CFTC Chairman Heath Tarbert. In the post, the Chairman announced that he believes Ether is not a security at this time. The news comes at a critical point in Ethereum’s development.

The news is a huge win for the Ethereum community. Currently, Ethereum is the second-largest cryptocurrency in the world by market cap ($20 billion). The ruling is important because it means Ether falls under CFTC regulations and not SEC securities regulations. Consequently, the decision allows financial institutions to offer a wide array of new products and open up entirely new markets moving forward.

Ether Futures and Derivatives

In the past analysts pointed out that the Ether derivatives market suffered due to the lack of transparency. Tarbert now says that you can expect to see both Ether futures and derivatives markets in the very near future. Surprisingly, he stated that these financial tools would hit the market in less than a year.

Ether Creator Vitalik Buterin via Medium

Ether Creator Vitalik Buterin via Medium

Transformative Token

According to the Chairman, Ether is a case of a transformative token. Basically, the token started as a security during the ICO event. At that time the enterprise was playing a controlling role over the digital asset. As time progressed, the Ethereum enterprise faded to the background as the cryptocurrency decentralized. Now the token serves as a utility.

Reverse Securities

Additionally, Tarbert described the reverse scenario in which a utility token slowly develops into a security. In this situation, you start off with a fully decentralized organization. Over time, the enterprise steps back in to take more control. Consequently, this creates a scenario where investors seek profits from the efforts of others. Now the token is a security.

Notably, SEC officials stated that they do not consider Ether a security in its current state. However, both the SEC and CFTC did point out that during the company’s ICO, Ether acted as a security. Luckily the SEC declined to fine the Ethereum development team for its ICO.

Bitcoin is a Commodity

Falling along this line of thought, Tarbert explained that Bitcoin is also a commodity. This statement coincides with the SEC’s decision to decline to label Bitcoin as a security. Analysts consider these actions as a precursor to this week’s news.

PoW to PoS

Also, Ethereum developers announced a shift from the Proof-of-Work (PoW) consensus algorithm to a more energy-efficient alternative, a Proof-of-Stake (PoS) consensus mechanism. PoS systems don’t require your PC to do heavy computations. Instead, users earn rewards for “staking” tokens in their wallets. In this manner, PoS tokens use far fewer resources.

Ether Moving Forward

The Ethereum community has much to celebrate moving forward. The cryptocurrency continues to see development across the entire sector. You can expect to see the Ethereum community expand as more ETH-based products enter the market in the coming months.

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