Goldman, Moody’s, Deloitte launch blockchain ‘network of networks’

Many financial firms have dipped their toes into digital assets in recent years, either via cryptocurrency or by tokenization – putting existing assets such as stocks and bonds on a blockchain.

However, banks and asset managers have been hesitant to use public blockchains like Ethereum, in part because of the lack of privacy and control over data, as well as issues around scale and performance.

Private blockchains, meanwhile, are not decentralized and can be edited by their operators, which many see as a disadvantage for participants.

Canton promises to combine the benefits of both. The operator, fintech firm Digital Asset, said it will launch in July.

READ Goldman Sachs, Credit Suisse run on EU’s MiCA for digital asset push

Thirty firms across finance and blockchain have so far signed up, including BNP Paribas, Cboe Global Markets, Deutsche Börse, Microsoft and S&P Global.

Joseph Cody, head of digital banking solutions at Deloitte, said the consultancy’s team would help by “bringing their deep experience in deploying interconnected applications across the Canton Network”.

The network is the “first of its kind,” Cody said, and the firm is “thrilled to partner with global leaders” for a more connected and efficient future for financial services.

Cathy Clay, executive vice president of global digital and data solutions at Cboe, added that the tokenization of assets on a blockchain could provide “a unique opportunity to create new market infrastructure and drive efficiencies in the trading of products worldwide”.

“By leveraging new blockchain technologies, we can potentially unlock new opportunities for market participants. Efforts like the Canton Network will help our industry further explore this frontier.”

Enjoyed the coronation? There is an NFT for that

As Britain awakens (mostly) from its coronation quiche-induced slumber, nearly 20,000 people now own versions of a non-fungible token designed to commemorate the event.

NFT, designed by artist Trevor Jones and published by Evening standard newspaper, was released for free at the weekend, and is now sold out with 19,449 owners.

In true crypto style, it is now traded on the secondary market, via the Nifty Gateway NFT marketplace. Yours for a princely $8.10.

Kemi Badenoch seeks “emergency meeting” with Revolut

Business Secretary Kemi Badenoch is calling for an urgent meeting with Revolut amid concerns it could leave the UK, reportedThe Telegraphfollowing strong criticism of UK financial regulation from the fintech firm’s boss Nikolay Storonsky.

Storonsky, among Britain’s richest business executives with a fortune of more than £5 billion, said in a recent interview that London is a difficult place to do business and that he would never list the company in the UK. Revolut’s bosses are growing increasingly frustrated by delays in securing a UK banking licence.

Revolut has been trying to get a UK banking license since 2021 and said in early March that it would get one “immediately”. However, it has yet to materialize.

A license would mean deposits held at the fintech firm would be protected by the UK’s financial compensation scheme, helping it to draw in more customers.

Storonsky said: “In the UK there are higher taxes to pay and an extremely bureaucratic regulator.”

A spokesperson for Revolut said so Telegraph: “We are a British company and London is our home.”

Binance legal chief leaves

Binance’s head of legal operations, Michael Isaacs, has left after 18 months at the crypto firm, to become director of litigation at Lyca Group, which operates mobile network Lycamobile.

Isaacs was previously a partner at City law firms TLT and Pinsent Masons and was also head of litigation at BT.

America’s crypto war rumbles on

Crypto giant Ripple is the latest firm to shun its domestic US market in response to a recent crackdown on the sector by the Securities and Exchange Commission.

CEO Brad Garlinghouse said the firm is expanding to Dubai in response to the SEC’s tough stance, reported CNBC.

He later tweeted: “With 20% of our customers based in Mena and clear regulatory regimes under development, it’s no surprise that Dubai is emerging as an important global financial hub for crypto innovation to thrive.”

The SEC has already taken regulatory action against exchanges Coinbase and Kraken this year, prompting Coinbase CEO Brian Armstrong to say he would consider moving the company overseas.

Ripple remains locked in a lawsuit with the regulator over whether the XRP token, the sixth largest by market capitalization, is an unregistered security. Garlinghouse said it had spent $200 million on the case so far.

Read Financial News’ recent interview with neighboring Abu Dhabi’s top financial regulator here.

Separately, Bittrex, once one of the largest crypto exchanges in the US, filed for bankruptcy on May 9 after being sued by the SEC.

The regulator moved against the Seattle-based crypto exchange as it prepared to exit the US market, citing what it called the difficulty of working with US regulators, The Wall Street Journalreported.

Further reading

The city’s dirty economy needs spring cleaning

Sam Bankman-Fried seeks dismissal of FTX criminal charges (Financial Times)

Why Abu Dhabi’s top regulator pushed back against crypto

Binance restarts bitcoin withdrawals after two stops (Bloomberg)

Private equity giant Apollo is part of a bid to buy bankrupt crypto firm Celsius (Coindesk)

To contact the author of this story with feedback or news, email Alex Daniel