The Weekly Hash – November 11 – 15

This digest is prepared for informative purposes only and does not represent an investment recommendation or investment advice. Please see our full disclaimer at the bottom for more information.

See below all the important happenings this week in the world of crypto, presented by the experts at Kraken: 

  1. Bloomberg: IRS Says ‘Dozens’ of New Crypto, Cybercriminals Are Identified
  2. BIS: Benoît Cœuré Appointed to Head BIS Innovation Hub
  3. The Block: Bitmain Rival Canaan Creative Set for Nov. 20 IPO on Nasdaq
  4. Decrypt: Crypto-Friendly Browser Brave Hits 9M Users, Up 13% in a Month
  5. MAS: MAS Helps Develop Blockchain-Based Prototype for Multi-Currency Payments
  6. CoinDesk: UPS Ships Beef to Japan, Tracked and Monitored Using Blockchain Tech
  7. Cointelegraph: Airbnb Now Bookable With Bitcoin and Lightning Network via Fold App
  8. Lolli: Shopping Giant Alibaba Partners with Lolli on ‘Singles Day’ to Give Bitcoin Back to Users
  9. Sina Finance: Alibaba’s Ant Financial Starts Pre-Launch Testing of Business Blockchain
  10. SEBA: SEBA Bank Launches Operative Business
  11. Reuters: China’s Digital Currency Not Seeking ‘Full Control’ of Individuals’ Details – Central Bank Official
  12. Blockchain Task Force’s Caitlin Long: Wyoming Unveils First-Ever Crypto Custody Rules for ‘Blockchain Banks’
  13. Bitcoin Suisse: Bitcoin Suisse and Worldline to Offer Crypto Payments Acceptance in Switzerland
  14. CoinDesk: BitGo Says It’s Now Processing 20% of Bitcoin Transactions
  15. Coinshares: Nov. 2019 Crypto Trends (Meltem Demirors’ Quick Take)
  16. HSBC: HSBC Partners With SGX and Temasek to Explore DLT for Fixed Income
  17. Brave: Brave Launches Next-Generation Browser that Puts Users in Charge of Their Internet Experience with Unmatched Privacy and Rewards
  18. CoinDesk: Bitcoin Miner Maker Canaan Sets $100 Million Target for US IPO
  19. CoinDesk: Fintech Arm of Chinese Insurance Giant Files for US IPO After Blockchain Push
  20. The Block: Samsung Unit Adds Privacy Tech to its Enterprise Blockchain Solution Nexledger
  21. PressTV: Iran Offers Bounty for Exposing Illegal Cryptocurrency Mining
  22. Decrypt: Ethereum 2.0 Tokens Could be Securities, Warns CFTC Chairman
  23. Unknown Fund: Unknown Fund is Going to Invest and Donate $75 Million for the Development of Ideas of Anonymity
  24. The Block: As Credit Concerns Loom in Crypto, Blockchain.com Secretly Builds Multi-Million Dollar Loan Desk
  25. CoinDesk: Ledger’s Vault Scores $150 Million in Crypto Insurance From Lloyd’s Syndicate
  26. Walmart: Walmart Canada and DLT Labs™ Launch World’s Largest Full Production Blockchain Solution for Industrial Application
  27. DAR: Defining Crypto Exchange Integrity—Digital Asset Research Publishes Quarterly Analysis for Trading Venues
  28. CoinDesk: China Is Poised for Another Crypto Trading Crackdown as Speculative Fever Returns
  29. BitMEX Forkmonitor: Bitcoin Cash Hard Fork Completed as Planned
  30. TradingView: Kraken Futures Are Now on TradingView!
  31. Baton: Baton Systems and J.P. Morgan Develop Industry Solution to Automate Derivatives Margin Payments
  32. DHS: DHS Awards $199K for Blockchain Credential Lifecycle Management
  1. Bloomberg: IRS Says ‘Dozens’ of New Crypto, Cybercriminals Are Identified
    • The IRS identified “dozens” of potential crypto tax evaders or cybercriminals after a meeting with tax authorities from the U.S., U.K., Australia, Canada and the Netherlands – known as the Joint Chiefs of Global Tax Enforcement
    • The Joint Chiefs shared data, tools and tax enforcement strategies to find new leads in an effort to mitigate cross-border money-laundering, tax evasion and cybercrime
    • IRS Sr. Special Agent Ryan Korner said the regulator’s cybercrime unit has developed expertise in “who is moving the money and where it’s going […] We have tools in place that we didn’t have six months or a year ago”
    • The Joint Chiefs stated, “Tax fraud is not a new crime, but the sophistication with which criminals commit tax fraud has significantly increased through cyber-related activities in recent years. Data breaches, intrusions, takeovers and compromises are the new tools that criminals use to commit tax crimes”
    • Korner added that the IRS and the Joint Chefs are using data from previous enforcement activities to find new criminals, “That data doesn’t go and sit. We use that data”
  2. . BIS: Benoît Cœuré Appointed to Head BIS Innovation Hub
    • The BIS’ Board of Directors appointed ECB executive board member Benoît Cœuré as Head of the new BIS Innovation Hub, which was set up to foster int’l collaboration among central banks on innovative FinTech, “The Hub’s mandate is to identify, and develop in-depth insights into, critical trends in technology affecting central banking; develop public goods in the technology space geared towards improving the functioning of the global financial system; and serve as a focal point for a network of central bank experts on innovation”
    • Cœuré’s eight-year term at the ECB expires on Dec. 31, and he will start his new role on Jan. 15 for a five-year term
    • The hub will work in collaboration with local central banks and initially operate in facilities Switzerland and Hong Kong SAR, with its third location is scheduled to launch on Nov. 13th in Singapore; additional locations will follow as part of a second phase of implementation
  3. The Block: Bitmain Rival Canaan Creative Set for Nov. 20 IPO on Nasdaq
    • Several sources have confirmed that Canaan Creative will IPO on Nasdaq on Nov. 20 following a $400M raise; the Bitmain rival filed to go public on Oct. 28th with Citi Group, Credit Suisse, Galaxy Digital, and four other firms as underwriters
    • Canaan said it controlled 23.3% of the global BTC mining machine market share in 1H19, relative to Bitmain’s share of 64.5%
  4. Decrypt: Crypto-Friendly Browser Brave Hits 9M Users, Up 13% in a Month
    • According to Brave’s Sr. Developer Relations Specialist Jonathan Sampson, Brave browser now has +9M users after growing its user base by +12.5% MoM 
    • Brave claims that Google and Facebook take ~73% of all ad dollars, while Brave only takes 30% and distributes the rest to users
    • In line with the increase in usage of the browser, daily trading volume of BAT has increased by +25% MoM
  5. MAS: MAS Helps Develop Blockchain-Based Prototype for Multi-Currency Payments
    • As part of Project Ubin, the Monetary Authority of Singapore (MAS) have collaborated with JPMorgan and Temasek to develop a blockchain-based prototype that enables cross-border payments in different currencies on the same network
    • MAS Chief FinTech Officer Sopnendu Mohanty said, “There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses”
    • Global Head of Clearing and IIN at JPMorgan John Hunter stated, “By leveraging our key learnings from building the Interbank Information Network® (IIN) and the JPM Coin, J.P. Morgan is well-positioned to support the development of a blockchain-based payments network and operate at scale”
    • Mohanty added that the MAS hopes the prototype development will encourage other central banks to conduct similar trials, “We will make the technical specifications publicly accessible to accelerate these efforts. We look forward to linking up with more blockchain networks to improve cross-border connectivity. This will be a big step forward in making cross-border transactions faster, cheaper, and safer”
    • A detailed report on Project Ubin, describing blockchain uses cases for payments and securities, is expected to be published in early 2020 by Accenture
  6. CoinDesk: UPS Ships Beef to Japan, Tracked and Monitored Using Blockchain Tech
    • UPS partnered with blockchain livestock-tracing firm HerdX to track, monitor, and deliver a full shipment of beef from Kansas to Tokyo
    • The shipping giant, which built and integrated a data visibility tool with HerdX’s blockchain to provide constant updates, hailed the shipment as a step forward in int’l logistics and tracking
    • Several sensors keep tabs on the steak and upload readings to the HerdX platform during shipment; at the steakhouse where it’s delivered, guests can order the steak and view its freight provenance via QR code
    • President of UPS Global Freight Forwarding Romaine Seguin commented, “Blockchain verification for international air freight shipments is complex and requires a great amount of expertise in customs and freight forwarding. Getting it right has implications for many industries, such as restaurants, food & beverage, and retail”
  7. Cointelegraph: Airbnb Now Bookable With Bitcoin and Lightning Network via Fold App
    • BTC payments app Fold added support for Airbnb to its Fold Kickbacks rewards program to allow users to spend BTC at online/in-store retailers and earn back up to 3% back in BTC
    • The app works in the U.S., Australia, Canada, Ireland, Mexico and the U.K., and is expected to be rolled out in Europe soon
  8. Lolli: Shopping Giant Alibaba Partners with Lolli on ‘Singles Day’ to Give Bitcoin Back to Users
    • Lolli partnered with Alibaba to allow its users to earn up to 5% BTC back when shopping with Alibaba online
    • Lolli CEO & Co-founder Alex Adelman said, “This is a milestone partnership for Lolli as Alibaba is the largest retailer and e-commerce company in the world, launching on Single’s Day, the world’s largest shopping day of the year. Our partnership allows our users to earn free bitcoin on millions of products online every day. Arguably the most important piece of this partnership is that it supports our mission of connecting the entire world through commerce”
  9. Sina Finance: Alibaba’s Ant Financial Starts Pre-Launch Testing of Business Blockchain
    • Alibaba’s fintech arm Ant Financial has begun testing its blockchain network aimed at supporting SMEs
    • Jieli Li, Sr. Director of Tech and Business Innovation at Ant Financial, said Ant Blockchain Open Alliance’s (ABOA) underlying tech will launch three months after testing, “While the blockchain is open to developers and institutions from all over the world, we will be cautious in terms of selecting nodes on the platform”
    • Li added that the firm will include educational and certification agencies as nodes to increase credibility of the network, and will choose partners depending on their industries rather than which regions they are based in, “We can not disclose the names of our partners who participate in the consortium blockchain at this time”
    • ABOA is aimed at cutting costs and expanding the reach of services in different industries, such as finance and healthcare, to a larger user base
    • Link to coverage by CoinDesk
  10. SEBA: SEBA Bank Launches Operative Business
    • FINMA-licensed SEBA Bank AG (formerly SEBA Crypto AG) launched its crypto-crypto & crypto-fiat banking services for a range of prospective clients, including corporates, asset managers and professional private investors, and plans to extend services to select foreign jurisdictions in December 
    • SEBA CEO Guido Buhler noted that clients can purchase digital assets without having to sacrifice security, “We are proud to have founded a bank within 18 months, raised CHF 100 million [$100.5 million] in capital from investors and obtained a banking and securities dealer license”; SEBA is also launching enterprise accounts for blockchain firms and their employees
    • The bank is offering a SEBAwallet app, e-banking services and a SEBA card (which can be used at 42M POS’ globally) with support for BTC, ETH, XLM, LTC and ETC
  11. Reuters: China’s Digital Currency Not Seeking ‘Full Control’ of Individuals’ Details – Central Bank Official
    • The Head of Digital Currency Research at the People’s Bank of China (PBoC), Mu Changchun, said the country’s upcoming digital yuan won’t fully control people’s info and will provide them with required anonymity in their txs, “We know the demand from the general public is to keep anonymity by using paper money and coins … we will give those people who demand it anonymity in their transactions”
    • Mu added that the central bank would keep the “balance between the ‘controllable anonymity’ and anti-money laundering, CTF (counter terrorist financing), and also tax issues, online gambling and any electronic criminal activities. That is a balance we have to keep, and that is our goal. We are not seeking full control of the information of the general public”
    • The digital currency is aimed at creating a new system in case of issues with China’s existing financial infrastructure, which WeChat and Alipay currently dominate
    • The official recently added that the digital yuan design would be similar to Facebook’s Libra and that it could also be used across WeChat and Alipay payment platforms
  12. Blockchain Task Force’s Caitlin Long: Wyoming Unveils First-Ever Crypto Custody Rules for ‘Blockchain Banks’
    • Wyoming unveiled opt-in custody rules for its “blockchain banks,” legally known as “special purpose depository institutions” (SPDIs), covering areas such as forks, airdrops, staking, customer notice requirements, and more
    • Wyoming’s SPDIs were approved by the Wyoming state legislature in Feb. 2019 and were introduced to serve those businesses unable to secure FDIC-insured banking services due to their dealings with crypto
    • All proceeds defined as ancillary/subsidiary, i.e., those earned via forks, airdrops, or staking gains, automatically accrue to the customer, not the custodian, unless otherwise agreed in writing
    • The rules forbid SPDIs from authorizing or facilitating the rehypothecation of crypto assets under its custody
    • Link to coverage by Cointelegraph
  13. Bitcoin Suisse: Bitcoin Suisse and Worldline to Offer Crypto Payments Acceptance in Switzerland
    • European payment services firm Worldline and Swiss crypto broker Bitcoin Suisse signed a LOI for a partnership to provide crypto payment services to 65,000 Swiss merchants using Worldline’s nationwide payments infrastructure, SIX Payment Services, as well as in-store/online consumers, “The goal of the partnership is to augment the existing payment service network of Worldline with cryptocurrency payment capabilities and – vice-versa – endorse the use of cryptocurrency in the country through its acceptance as payment currency on a large-scale both at the Point of Sale and in e-Commerce”
    • Worldline Switzerland CEO Marc Schluep said that “through the cooperation with Bitcoin Suisse, merchants can benefit from an entirely new offering without taking any conversion risk”
    • Payouts to merchants will be made in CHF or EUR, and tx figures will be fully integrated into merchant reports
    • Worldline plans to launch the crypto payments provision across Europe in the future
    • Link to coverage by Cointelegraph
  14. CoinDesk: BitGo Says It’s Now Processing 20% of Bitcoin Transactions
    • BitGo claims that it now processes +20% of all on-chain BTC txs
    • When asked, “If BitGo goes down, would those assets be at risk?” CEO Mike Belshe said there was nothing to fear, “The big thing we do is try to remove single points of failure”
    • Belshe credited BitGo’s growth to customers’ value of their multi-sig security, “It is a great assurance to our clients that they are always in control of their own assets no matter the circumstances. BitGo is their trusted partner that is focused on making the market for digital assets bigger, stronger and more secure every day”
  15. Coinshares: Nov. 2019 Crypto Trends (Meltem Demirors’ Quick Take)
    • According to Coinshares, Baby boomers (born 1946-1964) are beginning to retire with ~$70T set to be inherited over the next 20yrs, but pensions are underfunded by -25%
    • While the stablecoin market has grown 2.5x YoY, USDT has maintained its 80% market share
    • Since the 2008 financial crisis, the US money supply has increased 4x while interest rates rapidly declined and have stayed at ATLs
    • S&P500 returns have outpaced GDP returns, largely fueled by low interest rates and expansion of the money supply
    • Social networks are expected to dominate the payments network sector and partner with handset/hardware firms on building a strong native install base, “Global mobile payment transactions will be worth more than 3.5 trillion by 2023, will be delivered primarily outside of the United States, and largely by social networking players […] Banks don’t have the global reach or infrastructure to lead the payments charge – hardware manufacturers are the biggest distribution channel via native install”
    • Many crypto foundations are now operating as formal/informal investment funds, “The proliferation of venture arms and fund investments made by token foundation indicates returns to investment capital exceed those from innovation via protocol R&D”
    • The crypto market is ripe for M&A activity since there’s lots of spare cash on corporate balance sheets, but there aren’t many attractive M&A targets yet because firms “need more definition and demonstrable proof before we can expect significant valuations and exit multiples”
    • Link to Demirors’ tweet thread
  16. HSBC: HSBC Partners With SGX and Temasek to Explore DLT for Fixed Income
    • HSBC Singapore partnered with SGX and Temasek to trial DLT for issuing and servicing fixed income securities, with a focus on the Asian bond markets
    • HSBC claims that, while the Asian bond markets have seen speedy growth, issuance and servicing of the instruments are inefficient without a single platform for sharing data between different entities and tracking bonds across their lifecycle; the trial aims to address that shortfall by tokenizing bonds using smart contracts on a permissioned ledger to streamline these processes and ease friction in the markets (i.e., cut costs for issuers, investors, bond arrangers and custodians)
    • HSBC Singapore CEO Tony Cripps argued that DLT’s potential to reduce inefficiencies in the fixed income market still has to be determined, “Only by collaborating with market participants will we fully understand its actual viability”
    • Head of fixed income, currencies and commodities at SGX, Lee Beng Hong, added, “Having HSBC and Temasek on board will enable us to evaluate holistically whether smart contracts and DLT can solve some of the long-standing challenges in the fixed income issuance ecosystem” 
  17. Brave: Brave Launches Next-Generation Browser that Puts Users in Charge of Their Internet Experience with Unmatched Privacy and Rewards
    • Brave Software launched its Brave 1.0 browser, which brings iOS support to Brave’s private ads and payment platform (Brave Rewards)
    • Brave CEO & Co-founder Brendan Eich said, “Surveillance capitalism has plagued the Web for far too long and we’ve reached a critical inflection point where privacy-by-default is no longer a nice-to-have, but a must-have. Users, advertisers, and publishers have finally had enough, and Brave is the answer. Brave 1.0 is the browser reimagined, transforming the Web to put users first with a private, browser-based ads and payment platform. With Brave, the Web can be a rewarding experience for all, without users paying with their privacy […] Either we all accept the $330 billion ad-tech industry treating us as their products, exploiting our data, piling on more data breaches and privacy scandals, and starving publishers of revenue; or we reject the surveillance economy and replace it with something better that works for everyone. That’s the inspiration behind Brave”
  18. CoinDesk: Bitcoin Miner Maker Canaan Sets $100 Million Target for US IPO
    • Canaan plans to raise ~$100M in its U.S. IPO by offering 10M American depositary shares (ADS) priced between $9 and $11 ($90M-$110M), although this figure isn’t final
    • With this offering, Canaan commands a diluted market value of ~$1.5B with ~2.3B outstanding ordinary shares after the offering (each ADS represents 15 Class A ordinary shares)
  19. CoinDesk: Fintech Arm of Chinese Insurance Giant Files for US IPO After Blockchain Push
    • SoftBank-backed OneConnect Financial Technology, the fintech arm of China’s largest insurance firm Ping An Insurance, filed for a $100M IPO with the SEC to list its shares on NASDAQ; the IPO’s underwriters include Morgan Stanley, Goldman Sachs, JPMorgan, HSBC and others
    • OneConnect, which was valued at $7.5B in 2018, has eight dedicated research institutes and 50 tech labs working on blockchain projects across financial services industries
    • The firm’s FiMax blockchain was designed to improve data-sharing and privacy processes
  20. The Block: Samsung Unit Adds Privacy Tech to its Enterprise Blockchain Solution Nexledger
    • Samsung’s IT subsidiary Samsung SDS partnered with Israeli tech startup QEDIT to integrate its privacy-enhancing tech, namely zero-knowledge proof (ZKP) cryptography, to Samsung’s enterprise blockchain solution Nexledger
    • The integration of QEDIT’s privacy solution to Nexledger will allow clients employing the enterprise blockchain solution to authenticate data without revealing any underlying, confidential info
    • Samsung SDS’ Sr. VP and Leader of Blockchain Center Jeanie Hong said, “The performance of QEDIT’s private asset transfer solution has been exemplary during the rigorous series of testing and trials we conducted. The QEDIT team has consistently demonstrated the ability to horizontally scale ZKP cryptography in a blockchain environment”
    • QEDIT Co-founder Ruben Arnold added, ”Privacy-enhancing technologies like zero-knowledge proofs have a stellar record of success when it comes to protecting sensitive data. They will be as important to enterprise as cybersecurity solutions were in the last decade” 
  21. PressTV: Iran Offers Bounty for Exposing Illegal Cryptocurrency Mining
    • Iran’s Energy Ministry is offering a bounty of up to 20% of the recovery of the damage inflicted on the power grid for anyone who exposes subsidized electricity used for mining crypto (i.e., illegal crypto mining)
    • Under new regulations, crypto mining off the national electricity grid will be banned during peak hours of consumption in Iran, which have allegedly spanned +300hrs per year
    • Mostafa Rajabi, a spokesman of the Ministry, said that an average price for export of electricity, a fixed sum of 9,650 rials/KWh ($0.08/KWh), will be used in other times of the year as a baseline to calculate the price of the power consumed by miners; he added that this price will be half that figure in eight cold months of the year, ~$0.04/KWh, and will quadruple to $0.16/KWh in the remaining four months when electricity consumption increases across Iran mostly due to the warm weather
    • Rajabi said the gov’t will offer incentives to those who set up their own power plants for crypto mining, adding that the national network would back up plants that feed from renewable sources if a failure occurs during generation of electricity
  22. Decrypt: Ethereum 2.0 Tokens Could be Securities, Warns CFTC Chairman
    • CFTC Chair Heath Tarbert said proof-of-stake (PoS) tokens could potentially be classified as securities
    • While the CFTC previously said ETH should be classified as a commodity, Tarbert noted that the firm is “thinking carefully about” whether tokens on Ethereum 2.0, the blockchain’s next upgrade to a PoS system, will be classified as security tokens
    • Tarbert stated, “I think America needs to lead [in crypto regulation]. As a regulator, I want to, at least, create an environment where innovation can flourish”; however, he also cautioned against an aggressive approach to regulating cryptocurrency, “Clarity and consistency is the first step to leadership”
    • The chairman emphasized the importance of a principles-based approach to spur innovation, “Rather than detailed, granular rules, we have broad-based principles that everyone can agree upon. But we will leave it up to people in the industry to how best to meet those principles”
    • Ethereum 2.0 also violates provisions of the SEC’s Howey Test, such as the existence of a common enterprise and an investment contract between two parties
    • Tarbert noted, “Mining is, by its very nature, more decentralized as compared to a stake which reduces energy costs by giving it just one validator or a line of validators,” adding that the identity and numbers of those validators may become an important consideration in their evaluation
    • Tarbert said a multiplying ecosystem of stablecoins might have to comply with regulations across all 50 states plus the District of Columbia because the CFTC has jurisdiction only on futures instruments or derivatives; the underlying commodity on which it is based is still subject to regulatory mandates from states
  23. Unknown Fund: Unknown Fund is Going to Invest and Donate $75 Million for the Development of Ideas of Anonymity
    • The anonymous organization Unknown Fund will invest and donate $75M in BTC to startups which directly/indirectly support the idea of anonymity, with preference given to the following niches: protection of personal data, tools for anonymity, cryptocurrency and blockchain
    • The fund believes protection of personal data is one of the main challenges for modern man, citing examples of data manipulation including how social media impacted Brexit campaigns and U.S. presidential elections, among others
    • An anonymous organizer(s) commented, “The main goal of large corporations is to collect as much information as possible about the personal lives of people, and then use it for their enrichment. And they do a great job of it by making ordinary people get poorer. We are ready to fight for change and protect people” 
    • The fund plans to invest in commercial startups and donate to nonprofit organizations, “Investing is just the beginning. Anonymous have developed a number of strategies and methods that will be announced later. We will continue to fight as much as necessary to achieve our goal”
  24. The Block: As Credit Concerns Loom in Crypto, Blockchain.com Secretly Builds Multi-Million Dollar Loan Desk
    • Blockchain.com CEO Peter Smith has been secretly building a lending business for the past few months, which began with the wallet provider lending out coins to other lending operations on a case-by-case basis; Smith’s lending business is on on-track to lend out $120M this month and has lent, traded, and borrowed +$1.6B worth of crypto since August
    • Smith said the firm estimates they’re one of the top-five crypto lenders, “We don’t really have a size limit. That’s probably unique and why other lending desks borrow from us”
    • Bloomberg reported that the crypto-loan industry has emerged from nothing to ~$5B in just two years and the number of loan platforms are rapidly proliferating
    • Genesis, one of the biggest digital credit providers, saw its cumulative originations increase from $700,000 in Mar. 2018 to +$3B today; in a standard BTC loan, a Genesis client posts $1.2M of collateral for every $1M of BTC borrowed, paying ~5% annual interest (this rate has declined from ~11% at the outset)
    • Michael Moro of Genesis said the firm has never had anyone default on a loan because their customers are very credit worthy
    • Smith added, ”We are pretty selective. And I can do you one better: we never had someone late for a margin call”
  25. CoinDesk: Ledger’s Vault Scores $150 Million in Crypto Insurance From Lloyd’s Syndicate
    • Insurance broker Marsh arranged a $150M insurance policy from Lloyd’s of London syndicate Arch for users of hardware wallet creator Ledger’s new Vault technology platform
    • Ledger Vault isn’t a custodian; rather, it provides tools for investors to store their own crypto, and allows users to set up their own tx controls and governance procedures
    • Global Head of Ledger Vault Demetrios Skalkotos said, “We didn’t have to do this. We are buying insurance for the Vault platform at no additional cost to customers of our platform” 
    • Ledger’s policy covers: 1) third-party theft of private keys in the event of a physical breach of a HSM in one of its data centers; 2) the entire client on-boarding process which involves the generation of private keys within the company’s HSMs; 3) internal collusion within Ledger leading to insider employee theft
    • Ledger’s policy doesn’t cover theft via a third-party remote hack of the type that occur fairly regularly at global crypto exchanges; however, the vault itself prevents this type of hack by storing private keys offline
    • Jennifer Hustwitt, Sr. VP at Marsh & McLennan Companies, said Ledger Vault clients can also arrange their own dedicated primary insurance facilitated and “fast-tracked” by Marsh and Arch, “Clients that are part of this insurance program for Ledger Vault have the ability to obtain a dedicated limit that is dependent on the assets held on the Ledger Vault platform. It would be separate from the $150 [million] that Ledger is purchasing”
    • Ledger has sold 1.5M units of its Nano crypto wallet
  26. Walmart: Walmart Canada and DLT Labs™ Launch World’s Largest Full Production Blockchain Solution for Industrial Application
    • Walmart Canada partnered with DLT Labs to launch a blockchain-based network designed to improve freight and payment processing amongst the 70 third-party trucking firms that transport inventory for Walmart Canada nationally, as well as enable users to automatically trace deliveries, verify txs and handle payments and reconciliation
    • The network can be integrated with a business’s legacy system and “manages, integrates and synchronizes all the supply chain and logistics data in real time, aggregating the data between Walmart Canada and its fleet of third-party trucks on a shared ledger”
    • Sr. VP of Logistics and Supply Chain at Walmart Canada John Bayliss said, “This new dynamic and interactive blockchain technology platform is creating complete transparency between Walmart Canada and all of our carrier partners. Blockchain is enabling a material advance in our smart transportation network, with expedited payments, extensive cost savings and other benefits among our supply chain. Moreover, this degree of improved efficiency represents a powerful platform for us to continue to reduce our environmental footprint and continue our leadership in environmental sustainability”
  27. DAR: Defining Crypto Exchange Integrity—Digital Asset Research Publishes Quarterly Analysis for Trading Venues
    • Digital Asset Research (DAR) published its quarterly analysis of crypto exchanges which is designed to identify venues that meet rigorous measures of integrity, performance and reliability, in addition to reducing the impact of price discrepancies across the fragmented exchange landscape
    • Less than 10 (or <4%) of the +250 exchanges analyzed demonstrated the integrity of pricing, volumes, valuations and infrastructure to be deemed as ‘trustworthy’ for investors, including Bitfinex, Bitflyer, Bitstamp, Coinbase Pro, Gemini, Itbit by Paxos, Kraken, Liquid and Poloniex
    • DAR previously found that BTC price discrepancies between ‘trustworthy’ exchanges and data from overall industry exchanges averaged 1.14% – equal to a +$1B gap in market value; these discrepancies were significantly higher for less liquid cryptos
    • DAR GC & Executive VP Erin Friez said, “Regulators have repeatedly cited the need for an authoritative price. It’s still an emerging space, but we’re at the point where pricing, protections and performance have to be as clean as possible to promote accuracy and trust. It’s also a fast-moving environment where some exchanges know how to adapt their trade data in light of scrutiny, which is why we felt a rigorous, evolving quarterly analysis was the ideal approach to provide confidence and foster maturity”
    • Kraken CEO Jesse Powell said, “Creating secure markets and maintaining the integrity of those markets is why we got into this business. We’re thrilled to be recognized by objective sources for our efforts to become one of the most trusted exchanges for millions of investors each day”
  28. CoinDesk: China Is Poised for Another Crypto Trading Crackdown as Speculative Fever Returns
    • In an effort led by the Shanghai gov’ts finance bureau, regulators in each district of Shanghai must search and inspect local crypto exchange-related services before Nov. 22 and report to the central bank for further actions
    • The regulators are required to look for any entity that is organizing virtual currency trading activities inside China, or conducting an ICO using a blockchain
    • Chinese promo and brokerage services facilitating the sale of foreign ICOs also fall under the inspection scope of local regulators
    • China’s social media platform Weibo now bans users from publishing any posts that contain both “blockchain” and “crypto trading” in the same post
    • Link to coverage by Caixin
  29. BitMEX Forkmonitor: Bitcoin Cash Hard Fork Completed as Planned
    • Bitcoin Cash successfully conducted a planned hardfork at block 609,135; however, an unintended chain split occurred as an unknown miner failed to update to the new chain’s software and has since mined two blocks on the invalid chain
    • Link to coverage by Cointelegraph
  30. TradingView: Kraken Futures Are Now on TradingView!
    • Kraken’s futures products are now available to everyone on TradingView under KRAKEN:FUTURES
    • Everyone on TradingView can now track, chart, and analyze term and perpetual contracts from Kraken
  31. Baton: Baton Systems and J.P. Morgan Develop Industry Solution to Automate Derivatives Margin Payments
    • JPMorgan partnered with Baton Systems to develop a blockchain-based solution for derivatives that aims to enable the real-time movement of cash and collateral transfers to multiple clearinghouses
    • The current process requires collateral custodians to manually coordinate multiple systems and reports, while the new solution eliminates manual intervention in the collateral process and therefore expedites the collateral workflow
    • The platform automates margining and collateral flows and allows users to see the flow of assets between JPMorgan and the participatory clearinghouses
    • JPMorgan Head of Global Clearing Operations and Trading Cost Management Anthony Fraser noted that blockchain reduced the time needed for collateral processes from hours to near real-time, adding that the system has already led to faster payments and more efficient reporting for all parties in the collateral lifecycle
  32. DHS: DHS Awards $199K for Blockchain Credential Lifecycle Management
    • The Dept. of Homeland Security (DHS) awarded $200k to Digital Bazaar to develop a blockchain-based, credential management solution
    • The current processes of issuing, validating and verifying licenses and certifications are often paper-based, don’t facilitate data exchange, and could be susceptible to loss, forgery and counterfeiting; putting these processes on a blockchain could ostensibly help enhance security, ensure interoperability and prevent forgery and counterfeiting
    • Digital Bazaar will work on a project called “Interoperable Enterprise Identity and Credential Life-cycle Management,” to help DHS improve its processes
    • Technical director of the DHS’ silicon valley innovation program Anil John said, “Digital Bazaar building out the enterprise credential lifecycle management capabilities of their existing platform while utilizing emerging W3C [World Wide Web Consortium] global standards mitigates enterprise risk in supporting and utilizing these standards within and across organizations”

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