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Consistent Interest Rate Cuts To Start This March, According to Banking Giant Barclays: Report

Consistent Interest Rate Cuts To Start This March, According to Banking Giant Barclays: Report

Barclays analysts are reportedly expecting the Federal Reserve to commit to reversing its hawkish monetary policy early this year. The analysts predict that Personal Consumption Expenditures (PCE) will print an average of 1.9% on a seasonally adjusted annual rate for the last six months of 2023, Investing.com reports. The PCE is an inflation indicator that […]

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JPMorgan debuts tokenization platform TCN with BlackRock among key clients: Report

The platform enables the conversion of traditional assets into digital assets and makes way for faster and more secure settlements on-chain.

American banking giant JP Morgan debuted its in-house blockchain collateralization platform called Tokenized Collateral Network (TCN) on Oct. 11, reported Bloomberg. TCN settled its first trade for asset management giant BlackRock.

Tokenized Collateral Network is an application that allow investors to utilize assets as collateral. Using blockchain technology they can transfer collateral ownership without moving assets in underlying ledgers.

The TCN network in its first public collateralized trade between JP Morgan and BlackRock turned shares of one money market fund into digital tokens, which were then transferred to Barclays Plc as security for an over-the-counter derivatives exchange between the two companies.

The first internal test of TCN was conducted by JPMorgan in May 2022 and has a pipeline of other clients and transactions now that TCN is live. JP Morgan’s tokenization network was launched with the aim to streamline and scale the process of settling traditional settlements on a blockchain. The use of decentralized technology made the process faster, more secure and more efficient.

According to Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, the new TCN platform unlocks capital that has been locked up and allows it to be used as collateral in ongoing transactions, the technology would boost efficiency at scale. The platform makes it possible to create, transfer, and settle tokenized traditional assets. The tokenization platform allows for the movement of collateral nearly instantly as opposed to other methods used earlier.

The blockchain platform makes way for clients to access intraday liquidity through a secured repo transaction using tokenized collateral, rather than depending on expensive unsecured credit lines. External clients who agree to the blockchain trade have their own node using which they can settle the trade and access other reports.

Related: JPMorgan Chase enters generative AI race with IndexGPT trademark

The American banking giant has come a long way from its early days of criticism for the decentralized world and is currently actively involved in testing and launching various blockchain and crypto-centred services amid growing demand. The bank used a blockchain-based solution to settle trades with Indian banks in June earlier this year.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

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JPMorgan Chase and Seven Wall Street Firms Pay $68,000,000 Over Illegal Price-Fixing Allegations

JPMorgan Chase and Seven Wall Street Firms Pay ,000,000 Over Illegal Price-Fixing Allegations

Eight giants in the legacy financial system have agreed to pay a $68 million settlement after facing nearly a decade of litigation over a price-fixing scandal. Bank of America, Barclays Capital Inc., BMO Financial Corp., William Blair & Co. LLC, Citigroup Inc., Fifth Third Bancorp, JPMorgan Chase & Co. and Morgan Stanley were all accused […]

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Former JPMorgan, Barclays execs on why crypto jobs attractive even in bear market

Former traditional finance veterans are debuting a crypto career at the crypto ETF issuer 21Shares despite the bear market.

Despite the ongoing cryptocurrency market decline and associated forced layoffs in major crypto firms, a career in crypto doesn’t turn less attractive to many traditional finance executives.

European crypto exchange-traded fund (ETF) provider 21Shares announced three major hires on Wednesday to expand its presence in countries like France, Germany and the United Arab Emirates.

Marina Baudéan, 21Shares’ newly appointed head of France, Belgium and Luxembourg, is debuting her crypto career after working for more than 15 years at the British universal bank Barclays.

Baudéan is confident that crypto is “all about the next generation of technology,” and it’s here to stay despite market fluctuations or other issues. Having witnessed many technological changes throughout her career, she drew parallels between crypto and the early days of digital trading, stating:

“I began my career in Electronic Fixed Income Trading back in 2000, when traders told me they would never trade electronically. Over twenty years later, this market is now very much electronic.”

“Making the move from traditional finance to crypto was a natural progression to me,” Baudéan said in an interview with Cointelegraph, adding that the growth and momentum around crypto made her eager to move into crypto.

Oliver Schäfer, 21Shares’ new head of Germany, also joined the crypto ETF firm with a solid traditional finance background, bringing decades of experience across major financial firms. Prior to starting a crypto career, Schäfer spent more than 15 years at the American investment bank JPMorgan.

“I believe in the long-term opportunity of crypto — the asset class is growing and is only in its early days, so I am focused on the long-term opportunity versus the short-term market conditions,” Schäfer said, adding that it is an “exciting time to be in crypto,” Schäfer noted that he first invested in crypto in 2020, eventually growing more interested in the technology and industry developments.

Despite JPMorgan actively taking part in the crypto industry, CEO Jamie Dimon is known for some notable criticism of cryptocurrencies like Bitcoin (BTC). To this, Schäfer — former JPMorgan’s executive director — noted that many institutions have adopted crypto assets after initially being skeptical about them, stating:

“It’s important to remember that across the course of history, many people have been initially skeptical about technological developments before they were adopted in the mainstream — like with computers and cell phones. This is the natural course of technological advancements.”

Sherif El-Haddad, former head of asset management at Dubai-based Al Mal Asset Management, has joined 21Shares as head of the Middle East.

Related: OpenSea lays off 20% of its staff, citing ‘crypto winter’

“I believe in the underlying fundamentals of cryptocurrencies and the growth it is expected to witness over the next decade, and I positioned myself accordingly,” El-Haddad said. He also mentioned that he attempted to launch a physically-backed crypto ETF at Al Mal, but his proposal was not approved. He added:

“Cryptocurrencies have been well received globally by retail investors and the expectation is that institutional and ultra-high net worth are now moving in buying after the recent price correction.”

The new hirings by 21Shares are another evidence that the crypto job market has been holding strong despite the bear market and a massive wave of layoffs.

Major crypto companies, including big names like Coinbase and Gemini, decided to lay off up to 20% of its workforce so far, citing tough market conditions and the beginning of an economic recession. In contrast, many crypto firms FTX or the Binance crypto exchange continued to hire more talent during the ongoing crypto winter.

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Banking Giants Barclays and Goldman Sachs Back $500,000,000 Crypto Tech Firm

Banking Giants Barclays and Goldman Sachs Back 0,000,000 Crypto Tech Firm

Financial behemoths Barclays and Goldman Sachs are investing in Elwood Technologies, a crypto infrastructure and market data platform founded by billionaire Alan Howard. In a new press release, the crypto trading platform says that it raised $70 million in the Series A funding round that was co-led by Goldman Sachs and early-stage venture fund Dawn […]

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Goldman Sachs and Barclays invest in UK crypto trading platform Elwood

The global head of digital assets for Goldman Sachs said the demand for cryptocurrency from institutions is rising and the firm has been “actively broadening” its market capabilities to cater to that demand.

Banking giants Goldman Sachs and Britain’s Barclays have joined a $70 million Series A funding round for the institutional crypto trading platform Elwood Technologies, founded by billionaire British hedge fund manager Alan Howard.

Joining the round was crypto-friendly German bank Commerzbank, crypto investment manager Galaxy Digital, and Dawn Capital as reported by the Financial Times on May 15. The fundraising round valued the company at around $500 million according to the report.

Despite the recent fall in crypto markets, Elwood said it's betting that traditional financial institutions such as hedge funds and banks will still be interested in investing in cryptocurrencies. Elwood's funding round was already agreed to and in motion before the latest drop in prices which has seen roughly 15% wiped off the total crypto market cap since May 9 according to CoinMarketCap.

Elwood Technologies CEO James Stickland said the fundraising was “another validation of the longevity of crypto” brushing off the falling prices from the last few weeks:

“We’re getting investment from financial institutions that aren’t expecting to get massive returns in 15 minutes. They’re investing in the infrastructure, I think it’s a reassurance message.”

Elwood Technologies provides a crypto portfolio management system with crypto market information and trading infrastructure for institutional investors that features an interface that connects to crypto exchanges, liquidity providers, and custodians.

Commenting on the deal Goldman Sachs’ global head of digital assets Mathew McDermott said the investment showed the firm has “continued commitment” to cryptocurrencies, adding:

“As institutional demand for cryptocurrency rises, we have been actively broadening our market presence and capabilities to cater for client demand.”

The funding from Goldman Sachs marks the bank's further expansion into crypto assets. The investment bank was the first to offer a loan backed by Bitcoin (BTC) to crypto exchange Coinbase in early May. It has long seen an interest in the space, even referring to digital assets and the Metaverse as “megatrends” in March.

Related: Decentralized and centralized finance need to collaborate

Another case of the Wall Street giant cozying to crypto firms saw a meeting between Goldman CEO David Solomon and FTX boss Sam Bankman-Fried which included an offer from Solomon to help FTX with future funding rounds and regulatory compliance.

As for Elwood Technologies, it will remain majority-owned by Alan Howard who was the main investor before the Series A round. Howard co-founded the hedge fund Brevan Howard which launched its crypto investment division “BH Digital” in September 2021.

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HSBC Becomes Latest Bank to Suspend Payments to Crypto Exchange Binance in UK

HSBC Becomes Latest Bank to Suspend Payments to Crypto Exchange Binance in UKHSBC has reportedly become the latest British bank to announce that it has suspended payments to cryptocurrency exchange Binance. Citing a consumer warning by the country’s financial regulator, the Financial Conduct Authority (FCA), the bank told its customers: “We’ve made this decision due to concerns about the possible risks to you.” ‘We’re Suspending Payments to […]

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After Barclays and Santander, UK Bank Natwest Blocks Payments to Binance

After Barclays and Santander, UK Bank Natwest Blocks Payments to BinanceA major high street bank in the U.K., Natwest, has blocked payments to crypto exchange Binance. Natwest’s decision came after two other major British banks — Barclays and Santander — made a similar move to block fund transfers to Binance. The banks acted in response to a warning on the cryptocurrency exchange by the U.K.’s […]

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Payments Provider Clear Junction Stops Processing Payments for Binance

Payments Provider Clear Junction Stops Processing Payments for BinanceOn Monday, the global payments solutions provider Clear Junction announced it ceased processing transactions for Binance. The move by Clear Junction was brought on by the Financial Conduct Authority’s (FCA) recent warning, according to a blog post written about the decision. Clear Junction Ceases Processing Payments for Binance Citing the Recent FCA Warning The Financial […]

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Santander’s UK arm follows Barclays in banning payments to Binance

The bank said would be “following the FCA’s warning to consumers” in blocking payments made to the crypto exchange.

Spain-based bank Santander’s U.K. business will no longer be allowing its customers to send payments to Binance, citing warnings from the Financial Conduct Authority.

Several replies from Santander’s U.K. Twitter help account today said the bank has “decided to prevent payments” to the world’s biggest crypto exchange in an effort to prevent fraud. The bank reportedly told customers they would still be able to withdraw cash from Binance, but it would be “following the FCA’s warning to consumers” in banning payments.

Source: Twitter

Many Santander account holders expressed negative feelings about the bank’s decision:

“As one of your long standing account holders, DO NOT tell me how I can spend MY money,” said Twitter user Brian Moore. “If I choose to use Binance then that is MY choice.”

A London-based user added:

“You are putting innocent, well informed customers at risk of losing significant investment due to your binance block. How is that fair or responsible? People can become victim to fraud or losses in many things; betting, bank scams, phone scams. This is absurd.”

Last month, the Financial Conduct Authority, or FCA, warned consumers that Binance Markets Limited would no longer be allowed to engage in any “regulated activity” in the United Kingdom. While the financial watchdog doesn’t regulate cryptocurrencies like Bitcoin (BTC) or Ether (ETH), certain crypto derivatives and that which it considers a security falls under its mandate. The FCA told investors to be “be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products.”

Binance later responded to the notice, saying that the FCA mandate did not prevent the exchange — Binance.com — from conducting business in the United Kingdom, as Binance Markets Limited was a separate entity. However, some high-profile financial institutions in the U.K. have already imposed restrictions for customers dealing with Binance.

Related: Binance disappointed by Barclays’ ‘unilateral action’ to block customer payments

This week, British multinational bank Barclays told its customers it would be stopping any credit or debit card payments made to the crypto exchange until further notice, also citing the FCA notice. U.K.-based Starling Bank has seemingly echoed Santander’s position, saying that its customers can deposit crypto in their accounts, but its “international currency provider does not support the purchase of cryptocurrencies." However, Monzo, another British bank, said today its customers are “welcome to invest in crypto” in response to a question on restrictions concerning the exchange.

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