Switzerland has the FinTech Market to Watch; Frictionlessness is the Word with Huobi; The DeFi Space Gets a Huge Backing
RedBlock Newsletter #16- Week Ending October 25th
Greetings all! We have news of digital asset regulations across the EU and Switzerland, a promising partnership from Huobi and Banxa, and more!
This week also brings a new syndication of Security Token Advisors’ content: Custody Options For Security Tokens., which you can read on our site, here!
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- CEX.IO is Setting the Stage for Mass Digital Asset Adoption in the EU
This week brings news of the launch of a new digital assets trading platform from CEX.IO, which will be available to residents of the European Union. The reason why this is included in our regulatory news section is because CEX.IO has launched this platform under regulation of the Cyprus Securities and Exchange Commission, or CySEC. The point of this story is that regulation almost goes hand in hand with wide set adoption. Basically, the more a tool/platform is regulated, the more trust it is bound to garner. This sets up CEX.IO pretty well for adoption across the EU because of its regulated platform. (Daily Forex)
2. Switzerland’s Legislative Body is Diving Head First into Blockchain
The blockchain sector, this week, showed new signs of maturity as the Swiss parliament approved regulations for digital assets. This new set of regulatory legislation seeks to prevent damage caused by lack of regulation, but also takes care not to hinder growth. In terms of the biggest takeaways from this wave of legislation, the “tokenization of rights, digital asset exchanges, and bankruptcy law” take center stage. (CoinGeek)
- Mode Follows Square and Microstrategy’s Bitcoin Decisions
Another, rather substantial instance of institutional adoption has made the news this week as fintech firm, Mode, which is listed on the London Stock Exchange, has just announced that it has allocated a whopping 10% of its cash reserves to be converted to Bitcoin, following the likes of Square and MicroStrategy. Executive Chairman Jonathan Rowland has even said that “we truly believe that Bitcoin is a vehicle for financial empowerment and, through Mode, investors can gain exposure to this highly attractive asset class through a listed and fully compliant company.” (Decrypt)
2. Huobi’s “Fiat Gateway”
The term “frictionless” often crops up when talking about digital assets as well as cryptocurrency, and this week Huobi gave us another development in the area of frictionlessness with a new “fiat gateway”. That is, through a partnership with Banxa, the “internationally compliant fiat-to-crypto gateway solution”, Huobi’s digital asset exchange can now accept the Australian dollar, British Pound and Euro, making access to crypto easier and more frictionless than ever. Ciara Sun, The Vice President of Global Markets at Huobi Group put it well when she said that, “‘this integration introduces a new point of access for users in Australia, UK and the European Union looking to enter the crypto market’”. (Business Wire)
- Bixin is Investing in DeFi
Bixin, a China-based Bitcoin miner, has announced that they are starting a fund to help develop projects in the DeFi space. This is yet another instance in the slew of heavy hitting investments into promoting the DeFi and digital assets space to take place in the past couple of months. The $100 million fund aims “to foster infrastructure projects that aim to scale up decentralized finance”. (The Block)
References
Regulatory News
- “CEX.IO Broker Offers Digital Asset Margin Trading to EU Residents”
2. “Swiss parliament approves raft of digital asset regulations”
Industry Updates
- “LSE-Traded Mode Adopts Bitcoin as Reserve Asset”
2. “Huobi Expands Fiat Gateway to Support AUD, GBP and EUR through Banxa”
Investment and Financing Progress
- “Early bitcoin miner Bixin allocates $100 million proprietary fund for scaling DeFi projects”
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About RedBlock
RedBlock Inc is a digital investment and fintech firm leveraging blockchain technology for asset digitization and management, from issuance to secondary liquidity. Its global network of capital market participants, including issuers, broker-dealers, secondary exchanges, funds, liquidity providers and custodians, are supported by its end-to-end blockchain-powered asset management platform. RedBlock also manages an investment fund to support companies in its ecosystem that align with its investment thesis. With a growing track record and pipeline, the RedBlock team hails from top tier global investment banks, venture capital firms and blockchain technology companies.
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