7 Technologies Disrupting Finance Industry

In recent years, people have experienced the wonders of modern technology when it comes to managing their finances and accessing financial services. This trend is only expected to improve and continue with the advancements in technology like AI, cryptocurrency, blockchain, VR, and AR, among many other things.

But getting to this point has been a bit slow for the financial industry as compared to other industries who have arguably fewer developments in the technology department.

It’s understandable for the financial sector to have a slower response in the digital disruption due to the sensitive data that they hold.

There’s also the issue of established legacy systems that they have relied on for years. Something that newer and more agile financial companies are not facing due to less dependency on the system. These FinTech companies have the luxury of constantly re-evaluating and re-organizing their business model to give modern solutions to modern financial problems of customers today.

Rules and regulations have also hampered down the advancement of traditional financial companies. Most regulating bodies still don't know the capabilities of some of these technologies and the negative impacts they might have on both the ecosystem and the customers.

Despite these obstacles and due to the fast-changing behavior of customers and increasing competition from FinTech companies, a lot of financial companies have no choice but to digitally transform to provide the best service to their customers

Since fintech companies, normally, don't fall under the jurisdiction of these regulating bodies, they have been pushing the envelope and have experienced successes in implementing them. A great example of this is cryptocurrencies like Bitcoin and Ethereum that have experienced tremendous growth in the last decade. Now, traditional companies are exploring how they can use cryptocurrencies and blockchain technologies to carry out traditional tasks that are considered rigid, slow, and insecure. Some companies have also started accepting cryptocurrencies to pay for specific services.

We could say that, somehow, traditional financial companies are trying to keep up with the changes. But if they continue at this pace, they will always find themselves lagging behind modern and more flexible service providers. Soon they'll find that traditional financial advisors may not be as effective as an AI who can predict the most ideal investment streams or that people don't want to be bothered driving to physical banks since financial transactions can now be securely done through mobile phones.

The key to the industry's survival is to spearhead the implementation or experimentation of these technological tools instead of waiting for the next move of technology companies.

In this infographic created by Prototype, a digital transformation company, you'll see a list of modern technologies disrupting the finance industry, the factors driving these changes, and trends these companies should watch out for.


Infographic by: Prototype


Fidelity Digital Assets eyes service for introducing hedge fund investors to crypto funds

RELATED DIGITAL ASSETS INSIGHTS:

Crypto Industry Entering New Era as Institutional Traders Get Invested - Cointelegraph
Institutional interest in digital assets is growing as major financial players continue to enter the cryptocurrency space.

Appeal Of Digital Assets Growing Among Global Institutional Investors, Fidelity Says - Financial Advisor Magazine
Digital assets such as Bitcoin are gaining popularity among institutional investors in the U.S. and abroad, according to a survey by Fidelity Digital Assets.

  • Fidelity Digital Assets has seen its book of business for its custody and execution offerings grow since the beginning of the year
  • At the same time, the firm has been talking to hedge funds about a new service that would introduce them to big capital allocators
  • Meanwhile, the firm has made two key hires, including a new CTO
  by Frank Chaparro for The Block

Fidelity Digital Assets has been building out its team and is now appears poised to expand its suite of product offerings, The Block has learned.

The crypto-focused subsidiary of $7.9 trillion asset manager Fidelity has seen an increase in interest in its existing products from investors "across the board," according to a spokeswoman. Fidelity Digital Assets offers a custody service for bitcoin as well as an execution service, which helps institutional investors trade bitcoin in large size.

Since the beginning of the year, ongoing market turbulence and fears around impending inflation drove new interest from traditional investors, the firm has said.

Fidelity Digital Assets has ambitions to expand its business outside of custody and execution, according to people familiar with the process. A spokeswoman said the firm "routinely in discussions with market participants to understand the needs in the market to help inform our product roadmap. Our current product offering includes custody and execution services." [READ MORE]

 


Traditional Traders Are Ready to Go Crypto and Prefer Bitcoin

By 
Senior trading executives believe that larger trading companies are about to take the crypto plunge, and could be set to provide the market with a timely boost, per a new study. Bitcoin/USD is the most preferred trading pair, it added.

In a report named Institutional Adoption of Digital Asset Trading, compiled by the Acuiti management intelligence platform, in conjunction with the CME Group and the Bitstamp crypto exchange, authors claimed that survey data “suggests the digital assets market is on the cusp of significant growth from traditional trading firms.”

The findings were based on a survey of 86 senior executives “across the sellside, proprietary trading firms and the buyside.” The authors stated that its respondents from non-bank Futures Commission Merchants, proprietary trading firms and the buyside “tended to be C-suite [the executive-level managers],” while banking and brokerage respondents were primarily “heads of function at managing director level.” The findings were announced this week. However, the authors did not specify whether the survey was conducted before or after the market crash in March.

In either case, according to the survey, although most “traditional trading firms” still refuse to handle crypto, the tide could be about to turn.

The authors wrote,

“97% [of trading firms] will consider the opportunity again in the next two years or less and 45% are planning to revisit the idea in six months or less.”

Traditional Traders Could Be Ready to Go Crypto, Prefer Bitcoin - Survey 102
Source: Acuiti

What’s stopping them? Yes, you guessed it – it's regulation again.

>>> READ MORE


Crypto exchanges report uptick in trade volumes as coronavirus impacts the global economy

The coronavirus pandemic has pushed global markets into a state of shock – but major cryptocurrency exchanges appear to remain unaffected.

Seven crypto exchanges The Block spoke with – including centralized, decentralized and peer-to-peer (P2P) marketplaces – said they have witnessed increased user numbers and trading volumes since the pandemic started escalating.

"We've seen a significant uptick in sign-ups and a 300% increase in verified accounts," Dave Ripley, chief operating officer at Kraken, told The Block. Ripley did not disclose specific user numbers, but said Kraken currently serves "millions of clients around the world."

OKEx has also seen "steady" growth in its user base, CEO Jay Ho told The Block. "Especially during early-March, we recorded an estimated 1.7% boost globally."

Quick Take

  • Major cryptocurrency exchanges appear to remain unaffected by the COVID-19 pandemic’s economic impact
  • At least seven exchanges The Block spoke they have seen an uptick in user sign-ups and trading volumes
  • These include Kraken, Gemini, Bitfinex, OKEx, Bitstamp, Paxful, and KyberSwap.

Read More 


MainBloq & TradingScreen partner to bring the next generation crypto trading and best execution to the buy-side

We are thrilled to announce a game changing collaboration for the digital currency markets. We have been heads down working with TradingScreen to create the best in class crypto trading execution systems for their new Markts.io platform. Our teams have been working together to solve the friction points and build features needed to enable crypto traders to trade smarter and more efficiently than ever.

TradingScreen (TS), the cloud-based multi-asset Order and Execution Management System (OEMS) provider, and digital asset trading platform Mainbloq, have announced a strategic partnership to integrate Mainbloq’s trading technology into TS’s leading OEMS solution, TradeSmart® Markts.io for crypto trader.

Driving the partnership is increasing demand among the buy-side to trade multi-asset classes via one centralized platform, enabling greater operational efficiencies and the seamless integration of workflows.

Mainbloq’s technology will be integrated directly into TradeSmart’s interface, providing TradeSmart users with access to Mainbloq’s cryptocurrency trading platform on one screen.

“Partnering with TradingScreen was one of our easier decisions,” said Ryan Kuiken, CEO of Mainbloq.

“The obstacles faced by institutional investors in crypto markets are shrinking. We believe in the future of crypto and TradingScreen’s commitment to the future has us truly excited,” he adds.

TradeSmart users will benefit from access to global cryptocurrency liquidity and best execution via Mainbloq Smart Order Routing (SOR) and a suite of algorithms including TWAP, VWAP, Iceberg, PEG, Percent of Volume, and Implementation Shortfall.

“At TS, we’re continuously striving to develop our offerings to provide additional value to our clients. Combining TS’s cutting-edge technology with Mainbloq’s cryptocurrency trading tools enables us to do exactly that,” said Alexandre Carteau, TradingScreen’s Head of Crypto.

“The listed crypto market is very fractured and it is challenging for clients to achieve best execution on the various venues available. Having a powerful SOR coupled with algos is paramount to achieve client satisfaction.”

Carteau adds: “Partnering with a market leader in the digital currency space ultimately means that TradeSmart users can continue to trade multi-asset classes, including crypto, all under one roof – the power of which cannot be understated.”

About Mainbloq

Mainbloq is a data, research, and technology company focusing on blockchain and digital assets. Mainbloq offers a suite of trading tools including smart order routering, trading algorithms, the ability for clients to integrate their own algorithms, and consulting services to help clients execute on their trading strategies. For more information visit https://mainbloq.io/

About TradingScreen

Operating in the cloud for nearly two decades, TradingScreen is a leading expert on SaaS trading technology. TradeSmart OEMS offers workflow efficiency, and seamless integration with the buy-side and connecting with markets globally and providing traders the access and information they need to optimize their trading performance. For more information visit www.tradingscreen.com


Bitcoin making the payments world better

Bitcoin is the digital currency which is created and held electronically and is the first successful digital coin that can be transferred over the web. Bitcoin is a peer-to-peer payment network which in simple words means that it can be transferred from a person to another directly over the internet, taking out middlemen such as banks and credit agencies

The crypto crash of 2019 considerably changed the dynamics in the crypto market and ensured a clean-up of the crypto market. Cryptocurrency price changes are no longer dramatic and the Bitcoin has become significantly stable. The new crypto market is being driven by institutional money in combination with the new wave of innovation and adoption which will come from security tokens combined with stable coins. The crypto market is also becoming more regulated, and therefore more accessible to the public and efficient. The New York Stock Exchange’s operator is to start working with Bitcoin futures in 2020, while Nasdaq will follow their lead a year later. Bitcoin has matured as an investment vehicle, primarily with the introduction of Bitcoin futures, allowing for adoption, as investors short Bitcoin and settle contracts in real money, as well as trade-off Bitcoin even when they do not own bitcoin.

Bitcoin users can accept and send Bitcoin payments of any size from anywhere in the world in seconds instantly which allows users to minimize the amount of cash and plastic they need to carry around. People comfortable and conversant with bitcoin may travel solely with it as a means to an alternate source of income. An Australian beach town in Central Queensland became the first digital currency-friendly tourist town.

As bitcoin can be used to initiate global payments around the world at insignificant costs and in near real-time, it offers an opportunity for crowdfunding by anyone around the world to help support charities and any foundations. You can offer aid to any foundation from anywhere in the world to help a cause. You can also scan a QR code to make payment into a bitcoin wallet. This use of bitcoin is an initiate of Project 256.

If an woocommerce coupon company permits bitcoin to be used to complete purchases, it has advantages such as cutting out middlemen, cutting down transaction fees, increasing the speed of transaction and can boost trade in some developing countries. It is also very secure, and so can be used to encrypt keys of a digital wallet. Because Bitcoin is instantaneous, users have peace of mind that a transaction is completed for sure, and so reduces time where a payment remains pending for a period of time. The instantaneous nature of bitcoins, along with its security means that chargebacks are very unlikely to occur. You can accept Bitcoin through the use of payment buttons, invoices or custom integrations. Bitcoin is still very relatively new in the woocommerce smart coupons space, so if you are going to use it, ensure there are FAQs to guide the customer and make the UX as intuitive as possible.

Bitcoin may be used to integrate the unbanked. It can be used for digital micro-loans, on monetary exchanges and for cross border remittances.

As bitcoin is a digital asset, it can be moved automatically, allowing for programmable money and smart contracts. Escrow accounts are already used for transactions, such as real estate deals. Customers’ deposits can have held in the escrow accounts and only goes to the seller after what the buyer paid for has been delivered. In a digital age where trust can be crucial to people who want to transact with sellers or buyers they don’t know, this system can be used for varying amounts.

Researchers are working on ways to map bitcoin transactions in the ledger to IP addresses. Although this system is not perfect yet, this exploration into computer science, economics, and forensics will help nab criminals and can also serve as a guard against money laundering.

Bitcoins are not associated with a bank account or cash funds, and because they're only transferred electronically through blockchain ledger systems, they are likely to reduce fraud overall in the future.

National banks of countries that are subject to extreme conflict or financial mismanagement might begin supporting cryptocurrencies by supplementing the gold reserves with bitcoin as it is a trust-minimized cryptocurrency solution.

About the author:
Junaid Ali Qureshi is an ecommerce entrepreneur with a passion for emerging tech marketing and ecommerce development. Some of his current ventures include Progos Tech (an Woocommerce mix and match), Elabelz.com , Titan Tech and Smart Marketing.


Taxing Crypto: Currency or Commodity?

The world saw its first bona fide cryptocurrency in 2009 with the advent of Bitcoin. Since then, cryptos have taken the realm of fintech by storm. Its rise in popularity billowed so rapidly, in fact, that nations are unsure how to regulate it. The truth is, cryptocurrency is such a novel technology that we still don’t quite know how to handle it.

Should we consider cryptocurrencies commodities or actual currencies? The answer to this question is not so simple. In fact, tax regulations around the world differ on the interpretation.

Our current understanding of cryptocurrencies is that they can basically be either, depending on how they’re used.

Crypto as Currency

As the name itself implies, cryptocurrency can function much like fiat money. By that token, one may use them for the purchase of goods and services (in some countries, anyway). They may also be exchanged into other currencies, making them functionally the same.

So that settles it, right? After all, cryptos do everything money does, for the most part. Well, not quite. While they may operate like currency, and intuitively it makes sense, some traits make cryptos difficult to classify as currency.

For one, it is a decentralized currency. In other words, it is not tied to any third party authority (country, bank, etc.); there’s the sender and the receiver, nothing more. This stands in stark contrast to how traditional money has worked up until now.

Secondly, cryptos cannot be produced arbitrarily according to a country’s current economic state. It instead requires “mining,” and only a fixed amount of them exists. This makes cryptos more of an asset, like gold.

Crypto as Commodity

From a certain perspective, cryptos can also be considered a commodity. Granted, the line between currency and commodity is quite fine. The key difference between the two is that the former acts as a clear-cut facilitator for exchange which quantifies the value of an item or service.

That being said, a cryptocurrency does possess fungibility, i.e. the ability to be interchangeable with other commodities on the market. Beyond that, commodities can afford to be volatile, whereas currencies don’t have that luxury. Having in mind Bitcoin’s value history, it certainly fits the profile of a commodity.

This view certainly isn’t without legal precedent. In early 2019, Indonesia greenlit legislation that treats Bitcoin as a commodity for trade. Meanwhile, the Australian Tax Office (ATO) suggested the same ruling on the matter for other cryptos as well, rendering them subject to the Goods & Services Tax. Australia ultimately dubbed Bitcoin as money.

The main idea that stops cryptocurrencies from being pure commodities, however, is the idea of value. Commodities have intrinsic value, like crops, for example. Cryptos, on the other hand, hold only the value that current market expectations give them. It’s only worth what it can buy, and nothing else.

In the Eye of the Beholder…

As things currently stand, crypto seems to dip its toes in both ponds, performing as both commodity and currency. And until we reach a deeper understanding of crypto, regulation cannot consistently come to the same decision on the matter. Thus, for now, it’s up to each individual country to make up its mind about this conundrum. Until then, take a look at this insightful infographic below:

How Crypto Is Disrupting the Financial Ecosystem


Erisx Launches Regulated Bitcoin Futures Market BTC $BTC

Crypto trading platform Erisx has launched a bitcoin futures market regulated by the U.S. Commodity Futures Trading Commission (CFTC). Its physically-settled bitcoin futures contracts trade alongside its spot market which supports four cryptocurrencies. Erisx has obtained a license from the U.S. Financial Crimes Enforcement Network (FinCEN) and is currently approved to operate in 44 states, with a plan to expand to 53 states and U.S. territories.

Article Published on Bitcoin.com

Physically Settled, Regulated Bitcoin Futures

Erisx announced on Tuesday the launch of its regulated bitcoin futures market. The platform’s physically-settled bitcoin futures contracts are offered alongside its spot market for “price transparency and collateral efficiency,” the company detailed. Initially, only monthly and quarterly contracts are offered.

Since the contracts are physically settled, “settlement will be made by the movement of the digital currency to the buyer of the futures contract and US dollars to the seller of the contract,” Erisx’s website describes. The current requirement to become a member of the platform is a minimum balance of $10,000.

Erisx’s current futures product.

Prior to Tuesday’s launch, the company ramped up its team and developed technology for its exchange’s matching engine (TME) and clearinghouse’s clearing system (TCS). The company also developed risk-mitigating functionality to enable efficient price discovery such as self-match prevention, price banding, and maximum order sizes. Its futures clearing platform was built from scratch. Currently, Erisx’s spot trading platform supports BTCBCHETH, and LTC, which can be traded against the USD or BTC >> READ MORE


Announcing LiveView: Look into the top of book for any crypto currency pair across all of the major exchanges

Announcing LiveView by Mainbloq: your live view into the crypto markets. We built LiveView to demonstrate to our clients the power of our technology, now we're giving it to anyone with a web browser: www.mainbloq.io/liveview

We're always building new technology for our clients—you may have read about our Smart Order Router and Trading Algorithms in previous articles—but today we're releasing something for EVERYONE.

What's in LiveView:

  • An insider's look into the top of book for any currency pair across all of the major exchanges and their liquidity pools.
  • See total volume and liquidity for currency pairs across exchange in real-time.
  • Identify price differences between exchanges to see where to get the best price.
  • A real-time calculation of stable rates normalized to give the true best price.

So what can you do with LiveView? You can trade smarter. That's what we're all about at Mainbloq, we give you the tools to make better trading decisions.

The one thing that we see as most salient is if you are only executing on one exchange you are leaving money on the table. To make the most efficient trades you need to execute cross-exchange.

One thing you can't do from LiveView is trade. If you're looking to trade smarter in real-time contact us here: https://mainbloq.io/contact/

About Mainbloq
Mainbloq is a data, research, and technology company focusing on blockchain and digital assets. Mainbloq offers a cloud-based, modular platform including a smart order router, suite of trading algorithms, the ability for clients to integrate their own algorithms, and consulting services to help clients execute on their trading strategies. Mainbloq is building the best-in-class platform for researching and trading digital assets. For more information visit https://mainbloq.io/


Bitcoinexchangeguide.com: Crypto Analysis Company Mainbloq Launches New Algorithm To Automate Trading Activities