Wall Street’s Crypto Caution Risks Coinbase Gaining ‘Unassailable’ Position


Cryptocurrency trading revenue is primed to explode within the near future, and Wall Street is running out of time if it hopes to stop industry giant Coinbase from gaining an indomitable market position.

Writing in a new report titled “Crypto Trading — the Next Big Thing is Here?,” analysts at market research firm Sanford C. Bernstein & Co. forecast that cryptocurrency trading revenue — the fees that exchanges charge for each trade — could soar to $4 billion in 2018, despite the fact that gross trading volume has declined in recent months along with cryptocurrency prices. Bernstein’s research was first reported by Bloomberg.

If trading revenue does hit $4 billion, it will represent an increase of more than 120 percent from 2017. The firm estimates that exchanges brought in a combined $1.8 billion in trading fees last year, which works out to about eight percent of the fees generated on traditional stock exchanges.

All of this, Bernstein analysts led by Christian Bolu wrote, presents Wall Street with a tremendous opportunity to profit from a rapidly-maturing asset class.

“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms,” the analysts wrote, ranging from market-marking to regulated custody of cryptoassets. Indeed, industry observers regularly point to the dearth of regulated custodians as one reason that more institutional investors have not taken a more active interest in cryptoassets.

A few firms, most notably Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE), have begun taking concrete steps to establish themselves as leaders in the cryptocurrency marketplace. However, by and large, Wall Street has remained hesitant to jump feet-first into cryptocurrency.

Wall Street firms pursue this cautious course at its own peril, the Bernstein analysts warned, because the window in which they have the opportunity to wrest a dominant market position away from current cryptocurrency giants is rapidly closing.

If they don’t move quickly, Coinbase — who Bernstein estimates rakes in approximately 50 percent of all trading revenue between its brokerage and professional exchange platforms and now boasts twice as many users as Schwab — could achieve an “unassailable competitive position” that even the largest players on Wall Street will not be able to overcome.

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The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in Malta

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in Malta

The Daily

Crypto exchange Binance is launching a fiat-to-crypto trading platform in Liechtenstein and you can find the details about the joint venture with LCX in The Daily. We’ve also got reports about ZB.com opening a new office in Malta, Coinsilium investing in crypto trading platform Bundle, and the rebranding of the Toshi crypto wallet as Coinbase Wallet.  

Also read: McAfee’s “Unhackable” Wallet Is Doomed, Coinbase Wants to Be Your ID

Binance LCX Launches Fiat-to-Crypto Exchange in Liechtenstein

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaBinance, the largest cryptocurrency exchange by volume, has announced it’s launching a fiat-to-crypto trading platform in Liechtenstein through a joint venture with LCX.

Binance LCX plans to build up a team of up to 15 professionals for its Liechtenstein office that will manage customer support, legal requirements, due diligence, KYC, AML and government communication, while the team at Binance will provide and maintain the platform.

According to a press release, the new exchange will offer trading for Swiss francs (CHF) and Euros (EUR) against major cryptocurrencies and add more trading pairs in the future. Commenting on the launch of the platform, Binance CEO and founder Changpeng Zhao said:

I believe Binance LCX will create a sustainable and reliable fiat-crypto gateway for professional and regular investors alike. I hope Binance LCX will drive new standards for usability and compliance for the blockchain industry, and we are very excited to bring the relevant experience and best practices to grow our team in Liechtenstein.

Monty C. M. Metzger, CEO of LCX, added: “Professional investors need a reliable fiat channel to invest into crypto assets. We are excited to launch the joint venture with Binance to establish new standards for the blockchain industry.”

Adrian Hasler, Prime Minister of Liechtenstein, welcomed the joint venture and said: “We are confident that Liechtenstein’s existing and future legal framework and practice provide a robust foundation for the Binance LCX and other blockchain companies to provide exceptional services here in Liechtenstein.” The tiny European nation is currently working on its Blockchain Act in order to implement a comprehensive legal framework for the crypto sector.

Crypto Exchange ZB.com to Open Office in Malta

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaZB.com, the fifth largest crypto exchange by daily trading volume, is planning to set up operations in Malta, also hailed the Blockchain Island for its efforts to create favorable conditions for companies in the industry. During the Malta Blockchain Summit, the company announced it will open a new office in St Julian’s. The exchange wants to start with crypto-to-crypto trading and intends to eventually offer fiat-to-crypto options as well. Jimmy Zhao, co-founder of ZB.com, said:

Malta is perhaps the world’s most progressive and forward-thinking nation in DLT, crypto and Fintech, and we are very excited to be part of the Blockchain Island. We are confident we will be able to announce our live operations soon.

Maltese authorities have been trying hard to turn the island nation into a crypto-friendly jurisdiction. The parliament in Valletta recently adopted three bills designed to create a clear regulatory framework that will enable the establishment of crypto businesses on the island.

Chinese-run ZB.com is moving in the footsteps of other players in the field – Malta has already attracted crypto exchanges like Binance, which is exploring opportunities to launch a decentralized bank there, Okex, another Chinese exchange which announced in April it is setting foot on the island, and the Polish Bitbay which revealed its plans to move to Malta in May.

Coinsilium Invests in Crypto Trading Platform

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaBlockchain venture builder Coinsilium Group Ltd has announced an investment of $125,000 USD in Bundle Network Ltd, a company developing an online platform to facilitate cryptocurrency trading. As part of the deal, the investor will also receive an entitlement to an undisclosed number of Bundle Network tokens and its chief executive will join Bundle’s board of directors, Proactive Investors reported. Earlier this year, news came out that Coinsilium had been engaged by Bundle to provide advisory services for a token generating event. The company notes that the investment in Bundle is part of a strategy to support “foundational services in the blockchain ecosystem such as the buying and selling of cryptocurrency and tokens.”

Coinbase Was Signing Up 50,000 Users a Day Last Year

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaLeading U.S., California-based crypto exchange Coinbase was signing up 50,000 new customers daily in 2017, its CEO Brian Armstrong announced during a tech summit in San Francisco, organized by Bloomberg. The chief executive also said the platform helped users trade $150 billion worth of cryptocurrency over the past year but did not reveal this year’s rate of new registrations. According to Armstrong, only about 10 percent of cryptos are currently used in real life, including online purchases. “I think it will be quite some time before you cross the street to Starbucks in the U.S. and pay with crypto,” he said. However, he is confident “it’s getting harder and harder to be a crypto skeptic.”

According to another announcement related to the San Francisco headquartered exchange, the crypto mobile wallet Toshi has recently been rebranded as Coinbase Wallet. The exchange posted on Twitter that “This is not just a new name, but part of a larger effort to invest in products that will define the future of the decentralized web and make that future accessible to anyone.” Users of Coinbase wallet can currently manage ethereum (ETH) and ERC20 tokens, with plans to add support for bitcoin core (BTC), bitcoin cash (BCH), and litecoin (LTC) already announced.

What are your thoughts on today’s news tidbits? Tell us in the comments section below.

Images courtesy of Shutterstock, Malta Blockchain Summit, Coinsilium.

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Huobi Launches Partner Exchanges in Russia, Philippines, Taiwan, Indonesia, Canada

Huobi Launches Partner Exchanges in Russia, Philippines, Taiwan, Indonesia, Canada


Chinese exchange Huobi and its partners are launching cryptocurrency exchanges in five regions: the Philippines, Russia, Taiwan, Indonesia, and Canada. Partners “share Huobi’s order integration system, wallet system, asset management and clearing systems.” The exchange in Manila has launched with trading in three markets with over 40 trading pairs.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Five Partners, Five New Exchanges

Chinese digital asset and service provider Huobi has announced that it has chosen five partners to launch cryptocurrency exchanges in five regions.

Huobi Launches Partner Exchanges in Russia, Philippines, Taiwan, Indonesia, CanadaHuobi is one of the world’s largest cryptocurrency exchanges, with a 24-hour trading volume of $915,183,234 at the time of this writing, according to Coinmarketcap. With offices in Singapore, the U.S., Japan, South Korea, Hong Kong, Thailand, and Australia, Huobi claims to serve millions of users in over 130 countries.

The five partners are Yatai International Holding Group, Vnesheconombank, Chi Fu Group, Asia International Finance Holdings (AIF) and Dbank Group, according to South China Morning Post. Each partner will utilize Huobi Cloud to set up a new cryptocurrency exchange in “the Philippines, Russia, Taiwan, Indonesia and Canada, respectively,” the publication added.

Huobi clarified on Thursday:

Corporate partners also share Huobi’s order integration system, wallet system, asset management and clearing systems; in addition to Huobi Global’s world-leading depth, liquidity and market data.

The company officially launched Huobi Cloud on July 20, aimed at “enabling its partners to build secure and stable digital asset exchanges quickly.”

Launch Schedule

Huobi has provided a rough schedule for when the new exchanges will be launched by its partners. The exchange in Bali, Indonesia, will be launched on August 22. The one in Taiwan will be called Shubao Digital Asset Exchange and will be launched on August 26. The one in Moscow will be launched on September 3. The company has not provided the launch date for the exchange in Canada at press time.

The only exchange that has already been launched by one of the above partners is in the Philippines; it is called Huibi. Launched on August 12, it is headquartered in Manila and co-founded by Ya Tai International Holding Group.

Huobi Launches Partner Exchanges in Russia, Philippines, Taiwan, Indonesia, CanadaHuibi exchange in the Philippines.

Huibi lists three markets on its platform: USDT, BTC, and ETH. Eight trading pairs are available for the USDT market, seven for the BTC market, and 26 for the ETH market. There is no fiat support.

Huobi is also expanding its presence in the U.S. On Wednesday, August 15, the company announced that it “has entered into a strategic partnership, including a significant investment” with Openfinance Network, a US compliant security token trading platform launched earlier this summer. This follows Huobi’s recent attempt to enter the US market with the launch of Hbus exchange.

What do you think of Huobi and its partners launching exchanges in these countries? Let us know in the comments section below.

Images courtesy of Shutterstock, Huibi, and Huobi.

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