February 9, 2023

Banks introduce blockchain platforms using cryptocurrencies

Banks introduce blockchain platforms using cryptocurrencies

Traditional banks are starting to adopt the idea of ​​doing business through blockchain platforms using cryptocurrencies. From Bitcoin to Ethereum and state-supported digital currencies, blockchain-based transactions demonstrate benefits in terms of speed and transparency.

Bank of New York Mellon (BNY Mellon), which$ 1.7 trillion worth of assets are managed, and will act as the administrator and agent for Bitcoin-ETF Bitwise Asset Management. This feature will appear according to an updated S-1 form submitted to the US Securities and Exchange Commission (SEC) on September 11th.

However, BNY Mellon, as well as accounting and law firms operating on behalf of Bitwise, will only fulfill responsibilities if US regulators approve Bitwise's ETF application.

As you know, this year Bitwise introduced itsOption to amend the rules of the Securities Act of 1933 to post its Bitcoin ETF on the NYSE Arca. The company’s application has not yet been approved, as regulators are still concerned about the possibility of manipulation in the digital currency markets. The SEC will review it on October 13th.

September 12th Santander, ninth largest in the worlda financial services company announced a $ 20 million bond issue on the Ethereum blockchain. According to Santander executives, this is the first bond in the world to be fully operational on a distributed ledger (DLT) network.

The buyer, one of Santander's companies, acquired bonds at a market price. Santander used cryptographic keys during the transaction and token exchange.

After the order was executed, the funds were transferred to the buyer through the blockchain. Bonds have a maturity of one year at a yield of 1.98% (per quarter).

Santander Group units participated in the transaction, this was done to reduce risks. A successful deal demonstrated the viability of moving bonds through Ethereum.

The Bank of Venezuela plans to become the first financial institution in the country, which will provide customers with the opportunity to conduct transactions in both crypto and fiat currencies.

In July 2019, Venezuelan President Nicolas Maduro instructed the country's financial institutions to create trading opportunities for the controversial and state-supported cryptocurrency of the country of Petro.

While Petro is pretty muchseen as a failed project that was created in an attempt to circumvent US sanctions, customers of the Bank of Venezuela say that now a new module for the crypto wallet has appeared in their accounts, which, apparently, will still be finalized.

Users can currently listPetro only through the official web wallet and trade tokens through the approved local exchanges Amberes, Bancar and Criptolago. Petro is currently trading at $ 60.