Global banks and traders recently announced plans to launch the first blockchain-based platform to finance commodity trading. According to reports, a Switzerland-based venture will run the platform and develop it in partnership with a leading blockchain technology company. The platform is set to go live later this year for the energy industry and then expand into agriculture and metals by early next year. Also this week, one of Wall Street's largest banks announced that it is moving forward with plans to offer a trading desk that will support various derivatives tied to digital assets, while another major Wall Street bank said it is exploring bitcoin derivatives products.
On Sept. 19, 2018, a top 10 national bank joined a blockchain network that offers real-time cross-border payments. The network includes some of the world's leading financial institutions and now has more than 100 clients across the globe, and is currently operating in 40 countries. And the South Dakota Division of Banking has approved the world's largest processor of on-chain bitcoin transactions, as a public South Dakota Trust Company − thus allowing the company to offer digital asset custodial services to institutional investors in the United States. The California-based company processes 15 percent of all global bitcoin transactions and processes $15 billion per month across all digital assets. As a qualified custodian, the company can deliver the highest levels of security and regulatory compliance for institutional investors.
On the regulatory front, the chief accountant for the U.S. Securities and Exchange Commission made a statement earlier this week that the emergence of blockchain technology does not erase the fundamental responsibility of firms to maintain appropriate books and records. Overseas, the U.K.'s Treasury Committee published a substantive report promoting thoughtful regulation of the blockchain industry to improve consumer outcomes, promote sustainable growth and position the U.K. to become the global center for digital asset activity. On the other hand, a recent EU report found no rush to regulate the market, citing concerns related to stifling innovation, with one policymaker commenting that the EU may decide to test different national solutions before implementing a more harmonized approach for the collective EU nations. Coincidentally, earlier this week, France announced that it will now issue licenses to companies that want to raise funds through ICOs in an attempt to attract more digital asset investors into the country.
To read more about the topics covered in this week's post, see the following:
- Banks, Traders Launch First Commodities Blockchain Platform
- Morgan Stanley Plans to Offer Bitcoin Swap Trading for Clients
- PNC Bank Embraces Blockchain and Joins RippleNet
- Blockchain startup Ripple signs up PNC as a customer for its payment tech
- Ripple Adds PNC Financial to Its International Cash-Transfer Network
- Announcing BitGo Trust Company: the Only Regulated, Qualified Custodian Purpose-Built for Digital Assets
- Bitgo Attains Regulatory Approval in United States
- Digital Assets Don't Change Reporting Needs, SEC's Top Accountant Says
- SEC's Chief Accountant: Firms With Digital Assets Still Need to Keep Their Books in Order
- UK Report: "Wild West" crypto-assets should be regulated
- UK's 'Wild West' Crypto Market Should Be Regulated, Say MPs
- EU Holds Off on Crypto Regulation
- Europe Is in No Rush to Regulate Crypto Market, Officials Say
- France Finalizes New ICO Framework to 'Attract Innovators Globally'
- $1 Billion Blockchain Fund Founders Plan Japanese Yen Stablecoin
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