Category: cryptocurrency exchange

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Securitization of companies beyond the US, extends tokenized coins to the UK

Securitize, a US-based blockchain company known for its expertise in tokenizing real-world assets, has expanded its operations to Europe.

The company entered the specialized sandbox of the General Secretariat of the Treasury and International Finance of Spain for digital asset values. Consequently, Securitize began issuing tokens representing shares in Mancipi Partners, a Spanish real estate investment fund.

Tokenization involves converting conventional financial assets, such as stocks and bonds, into digital tokens and issuing them on a blockchain platform.

This marks its first European trial, allowing Securitize to demonstrate its capabilities in the European market. Carlos Domingo, co-founder of Securitize, stated:

   Securitize is now the first company to be able to issue and trade tokenized securities in the US and Europe, and is the first company to do so under the new EU pilot regime for digital assets.

Securitize considers Spain’s sandbox environment key

Under supervised conditions, the Spanish General Secretariat of the Treasury and International Finance has approved the company to implement digital asset securities for a select group of companies and investors. According to the press release, this approval represents a recent achievement for Securitize in the European market.

Securitize views the Spain sandbox as a crucial milestone, allowing the company to conduct real-world testing before acquiring the necessary licenses.

After a period of six months, the company obtains the approval of the European Union Pilot Regime, which allows Securitize to proceed with the issuance, management and trading of tokenized securities in Spain and the EU in general.

The shares have been tokenized on the Avalanche blockchain, and secondary trading of these tokenized shares is expected to begin in September.

In May, the firm partnered with asset management firm Hamilton Lane to increase investor exposure by offering tokenized securities.

Amparo García Flores, CEO of Securitize Europe Brokerage And Markets, mentioned:

   This is not just theoretical work; we are showing that what we have in the US is viable in Europe. This means we can open up our market on both sides of the Atlantic, effectively doubling the size of our business and the opportunities for issuers in Europe that previously did not have the same opportunities as their US peers.

In the US, the company offers a range of services that cover the entire lifecycle of a security token. These services include issuance, capital increase, dividend distribution, shareholder meetings, redemptions and facilitation of securities trading in the secondary market.

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UK financial regulator announces launch of permanent Digital Sandbox in August

According to the FCA, the sandbox will be open to companies, startups and data providers, including those involved in banking, investing, lending and payments.

The UK Financial Conduct Authority (FCA) has announced the launch of its Digital Sandbox, which aims to support technology companies in the early stages of product development.

In a July 20 announcement, the FCA said the Digital Sandbox will be permanently available starting August 1. The financial watchdog has run two pilot programs of the initiative, which will be open to companies, startups and data providers, including those involved in banking, investing, lending and payments.

A sandbox allows projects to operate in a test environment to test their products and services largely without unwanted side effects that affect the real world. According to the FCA, the Digital Sandbox aims to help innovative companies in their efforts to launch new products and services, in addition to supporting economic growth and international competitiveness.

The UK Department of Treasury and Finance proposed a “financial market infrastructure sandbox” in April 2022 alongside its plans for a regulatory framework for payment stablecoins. HM Treasury also opened an investigation into a digital securities sandbox that could include crypto products in July.

On July 3, the European Commission announced that 20 projects had been selected for an EU regulatory sandbox. Those who qualified for the initiative included companies in financial and capital markets, telecommunications and information technology, and global trade.

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How to earn passive income with peer-to-peer loans

P2P lending is a way for people to lend money directly to others without involving traditional financial institutions like banks.

What are peer-to-peer (P2P) loans?

Peer-to-peer (P2P) lending, also known as marketplace lending, is a type of lending that uses online platforms to directly link lenders and borrowers, eliminating the use of conventional financial intermediaries such as banks.

P2P lending platforms serve as intermediaries, enabling loan application, credit assessment and lending service processes. They leverage technology to improve the user experience and match lenders and borrowers. Loans can be used for a variety of things including debt consolidation, small business loans, school loans and personal loans.

P2P lending platforms work within the legal restrictions imposed by the country in which they are located. Platforms must comply with all applicable laws, especially those related to the protection of borrowers and investors, which differ depending on country regulations.
Examples of P2P lending platforms

LendingClub is one of the largest P2P lending platforms in the United States. It offers personal loans, business loans and car refinancing options. Zopa is another prominent P2P lending platform in the UK. It offers personal loans and investments, connecting borrowers and investors directly.

Aave is a decentralized P2P lending platform on the Ethereum blockchain that allows users to lend and borrow cryptocurrency at interest rates based on supply and demand dynamics. It provides a wide range of features including cash withdrawal incentives, instant loans and secured loans.

regular interest income

P2P lenders can earn recurring interest on their loans. Borrowers’ interest payments generate cash over the life of the loan. This income can be a source of passive cash flow, especially if investors have a diversified loan portfolio.

However, the amount of interest earned depends on the loan amount, the interest rate and the borrower’s payment behavior.
passive portfolio management

P2P lending systems manage loan servicing, payment collection, and lender distribution as lenders select and fund loans. Passive portfolio management allows them to earn without actively managing loans.

The platform ensures that lenders receive their fair share of interest payments and borrowers’ payments are completed.
automated investment

P2P lending platforms offer automated features and tools to simplify investing. Automatic investment options automatically allocate funds to new loans based on criteria predefined by lenders, eliminating manual selection and investment decisions.
reinvest refunds

As borrowers pay off their loans, lenders can expand their total loan portfolio and increase interest income by continually reinvesting payments. Reinvesting allows lenders to increase their earnings and potentially increase their passive income over time.
Risks and rewards of investing in P2P lending

Investing in P2P lending comes with risks and rewards, as explained in the following sections:
Risks associated with P2P lending

   Default risk: P2P lending is risky due to borrower default. Borrowers can default, losing principal and interest income.
   Credit risk: P2P lenders lend to individuals and small businesses with varying credit quality. Therefore, borrowers with high risk exposure may default.
   Lack of collateral: Lenders may have few assets to recover in the event of default, increasing risk.
   Platform risk: Lenders may face trouble getting their money back if a P2P platform encounters operational issues, financial instability, or fails completely.
   Economic and market risk: Financial instability and economic downturns can increase default rates and decrease the value of loans in the secondary market.
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Ark Invest sells over $50 million worth of Coinbase stock amid stock market rally

Cathie Wood’s investment firm, Ark Invest, has made significant moves in its Coinbase stock, selling over $50 million worth of shares as shares of the cryptocurrency exchange continue to rise.

This was the second time in a week that Ark Invest has reduced its stake in Coinbase, reflecting its hands-on management approach amid a backdrop of regulatory development and industry optimism.

At the same time, Ark Invest has been actively investing in other prominent companies including Meta Platforms and Robinhood.

Ark Invest profits from Coinbase Rally

Ark Invest, led by Cathie Wood, sold a total of 478,356 shares of Coinbase on Friday, worth more than $50 million. The sales were distributed across Ark’s flagship fund, the Ark Innovation ETF, which sold 263,247 shares, the Ark Next Generation Internet ETF, which sold 93,227 shares, and the Ark Fintech Innovation ETF, which sold 121,882 shares.

This decision comes on the heels of Coinbase’s role as a vigilant exchange partner for several Bitcoin ETF candidates, including industry giants BlackRock and Fidelity. Furthermore, recent legal rulings surrounding the status of the XRP cryptocurrency have added to the overall optimism of the industry.

While reducing its holdings in Coinbase, Ark Invest has also been actively investing in other adjacent crypto companies. The company started buying shares in Meta Platforms (formerly Facebook) and Robinhood. In June, the Ark Innovation ETF bought 69,793 shares of Meta, while the Ark Fintech Innovation ETF bought 111,843 shares of Robinhood.

Additionally, the Ark Next Generation Internet ETF increased its holdings with 12,559 Meta shares and 169,116 Robinhood shares. These strategic investments reflect Ark Invest’s ongoing strategy to navigate the evolving digital asset market.

Ark Invest’s decision to cut its holdings in Coinbase following significant acquisitions during market volatility and regulatory challenges demonstrates a calculated approach to securing profits amid the stock’s impressive recovery this year and indicates a calculated effort to secure gains during the recovery. of the actions.

Additionally, it demonstrates the company’s commitment to diversifying its portfolio to achieve long-term growth potential, as evidenced by its investments in Meta Platforms and Robinhood.

As the cryptocurrency market continues to evolve, Ark Invest shares will be closely watched by market participants, seeking information and guidance to navigate this dynamic landscape.

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Bitrue Crypto Exchange Launches Shiba Inu Staking Pool with 10% APY

Bitrue, the Singapore-based cryptocurrency exchange, has recently made significant strides in the Shiba Inu ecosystem, introducing the long-awaited Shibarium betting pool and listing LEASH, one of the prominent tokens in the ecosystem. These developments provide users with the opportunity to earn SHIBs, enjoy attractive returns and access enhanced trading options.

Shibarium Stake Pool launches and offers profitable returns

Bitrue started the Shibarium betting pool, announcing that it is allowing users to stake their LEASH and BONE tokens and win SHIB, the second largest dog-themed token.

With an impressive 10% Annual Percentage Yield (APY), the betting pool offers users a lucrative opportunity to earn passive income.

The participation period will last for 30 days, allowing users to participate for one month. Bitrue urges users to take advantage of the early stage as these investment opportunities are expected to run out quickly.

Bitrue includes LEASH and expands trading options for the Shiba Inu ecosystem token

Bitrue has expanded its support for the Shiba Inu ecosystem to include LEASH, offering users better trading opportunities. The listing allows users to access deposit functions on Bitrue’s trading platform, paving the way for greater liquidity and market share.

Investors and enthusiasts are now paying attention to the potential for substantial returns with Shiba Inu ecosystem tokens. Bitrue’s recent announcements have created excitement among SHIB holders as the expansion of the PowerPiggy service offers exclusive benefits to new users.

However, BONE, the governance token of decentralized exchange ShibaSwap, has seen price fluctuations. Currently priced at $1.23, BONE is down 92% from its all-time high (ATH). However, if BONE were to recoup its ATH of $15.50, investors would need an investment of $79,354 now to earn a return of $1 million.

Stylized as the Doge Killer within the Shiba Inu ecosystem, LEASH reached an ATH of $8,983 shortly after launch, but faced the brunt of a bear market, resulting in a current price of $416. of its ATH, the future movement of the LEASH price remains uncertain. If LEASH rises 2059% and recovers its ATH, an initial investment of $46,176 at current prices would yield a return of $1 million.