ConsenSys Buys SEC Regd. Broker Heritage To Tokenize Bonds

ConsenSys Buys SEC Regd. Broker Heritage To Tokenize Bonds
February 6, 2020


The cryptocurrency market remains range bound with slight bullish bias. Bitcoin (BTC) is making another attempt to cross $10,000 level. At the time of writing this article, the cryptocurrency was trading at $9,600.20, up 4.2% in the past 24 hours. Ether (ETH) has gained 8.6% to trade at $205.12. XRP has gained 3% to trade at $0.2816. Other major altcoins, which has gained in the past 24 hours include IOTA (IOTA-$0.3320, 1.1%), Cardano (ADA-$0.0598, 6.7%), OKB (OKB-$3.61, 7.8%), Bitcoin Cash (BCH-$439.49, 15.5%), Monero (XMR-$78.13, 4%), Tezos (XTZ-2.20, 12.9%), Dash (DASH-$123.32, 11.2%) Tron (TRX-$0.0208, 7%), Stellar (XLM-$0.0694, 3.3%), EOS (EOS-$4.53, 7.0%), Huobi (HT-$3.61, 5.2%), Cosmos (ATOM, $4.34, 3.2%), Binance Coin (BNB-$19.3, 3.5%), Litecoin (LTC-$73.15, 7%), Ethereum Classic (ETC-$12.93, 11.8%), ChainLink (LINK-$2.86, 4.3%). The major (top 20) altcoin which has declined in the past 24 hours is LEO (LEO-$0.8961, -0.7%).


Government level initiatives

iSTOX receives endorsement as a valid market operator

Blockchain platform iSTOX, which facilitates accessing private investment opportunities, has successfully cleared Singapore’s regulatory sandbox and has received the endorsement as a valid market operator and capital markets services license holder.

The platform, built by blockchain framework company ICHX Tech, is now completely functional and endorsed by the Monetary Authority of Singapore (MAS), the city-state’s central bank.

MAS, which also operates as Singapore’s financial regulator, unveiled its FinTech Regulatory Sandbox to promote local ventures that develop high tech finance related products and services within a safe, highly capable, and soft regulatory atmosphere.

ICHX Tech’s iSTOX will provide issuance, custody, settlement, and secondary trading of digitized securities, promising a unique, completely regulated launch on the blockchain landscape in a major international financial center.


Private sector initiatives

Venture division of Salesforce and Samsung take part in second Series C financing program

The venture division of Salesforce and Samsung took part in a second Series C financing program conducted by blockchain startup firm Digital Asset. After raising $35 million in the first Series C funding program that concluded in December 2019, Digital Asset chose to conduct another round of funding. Precisely, the second Series C funding saw investments from Samsung Venture Investment Corporation and Salesforce Ventures, among others.

Digital Asset Co-Founder and CEO Yuvol Rooz spoke highly about investments from Salesforce and Samsung. Rooz said, “Salesforce Ventures and Samsung joining our Series C financing round demonstrates the potential that technology giants see in DAML as the standard for smart contracts.”

As a startup focused on blockchain, Digital Asset introduced a tool named Digital Asset Modeling Language (DAML) in April 2019. DAML, being an open-source endeavor, functions similarly to a smart contract even though it differs with respect to private execution.

Digital Asset intends to use the capital raised from the funding round towards promotion of DAML adoption, encourages the creation of DAML development products and unveils further “DAML-enabled products of associates.”

ConsenSys acquires Heritage Financial Systems

Blockchain focused ConsenSys, founded by Ethereum co-founder Joseph Lubin, has acquired Heritage Financial Systems, a US-based broker-dealer. Specifically, Heritage, which is enrolled with the US Securities and Exchange Commission (SEC), has been bought by ConsenSys Digital Securities, a broking firm owned by ConsenSys. The news was revealed by ConsenSys Codefi, a blockchain-powered commerce and finance arm of ConsenSys.

By acquiring Heritage, ConsenSys aims to strengthen its counseling and broker-dealer abilities that will assist the company in using blockchain technology for issuing tokenized bonds in the municipal market.

Emma Channing, an executive in ConsenSys Digital Securities, will reconcile the brokerage initiate via Heritage. Ms. Channing explained the benefits of this acquisition: “The acquisition will bolster ConsenSys in-house broker-dealer capabilities by adding municipal finance in addition to some other lines to our existing line of private placement business at Consensys Digital Securities.”

In particular, ConsenSys intends to use blockchain technology to carry out mechanized bond payments through smart contracts and also to permit issuers to trace debtors. Furthermore, ConsenSys wants to build tokenized mini-muni bonds through its Codefi platform with the purpose of giving issuers the chance to sell securities in smaller fractions.



MIT develops a unique crypto transmission method

Academics at Massachusetts Institute of Technology (MIT) have developed a unique cryptocurrency transmission method that will quicken blockchain-powered trades. MIT, through an announcement, stated that the latest program, referred to as “payment channel networks” (PCN), will be able to significantly minimize blockchain-powered transaction confirmation time and even improve profits.

As elaborated, in PCN, trades are conducted with bare minimum participation of blockchain. The media release of MIT explained how PCN transactions take place. “Pairs of PCN users form off-blockchain escrow accounts with a dedicated amount of money, forming a large, interconnected network of joint accounts. Users route payments through these accounts, only pinging the blockchain to establish and close the accounts, which speeds things up dramatically. Accounts can also collect a tiny fee when transactions get routed through them.”

While conventional plans utilize the briefest track possible to finish a trade and do not take into account a user’s balance, PCNs depend on two-way joint accounts, where payments can be transmitted on channels with adequate funds to carry out the dealings.

The aforesaid procedure removes a situation where one of the joint account users manages several dealings, which could turn the balance to zero and make it unrealistic to conduct further dealings. In addition to PCN, the academics also unveiled Spider, a method to divide a single transaction into numerous smaller “packets,” which could be routed through various channels at dissimilar rates.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.



Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world

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