IBM uses cryptocoins in cross-border payments

IBM announced the creation of a blockchain-based solution for cross-border payments in partnership with Stellar and KlickEx
16 October 2017   2045

The solution already performs direct transactions in 12 currency corridors on the islands of the Pacific, Australia, New Zealand and the UK. The purpose of cooperation is to enable residents and entrepreneurs from one country to easily conclude trade agreements and carry out transactions with partners from other countries easily, quickly and without waste.

To conduct transactions between different fiat currencies, a token-bridge will be used - the Crypto-currency of the Stellar system, Lumen.

When trading between multiple currencies, it helps to have a bridge currency to reduce the ledgers needed to maintain. Lumen provides that single ledger that can bridge currencies.
 

Jed McCaleb

Founder, Stellar (to Coindesk)

Additionaly, National Australia Bank, TD Bank, Advancement of Pacific Financial Infrastructure for Inclusion (APFII) and Wizdraw (HK) of WorldCom Finance took part in this project. Also, the platform is already integrated with IBM's Financial Transaction Manager, which itself is integrated with ACH, SEPA and other electronic transaction network.

Stellar Lumens price chart

This news had great effect on Lumens' price. XLM gained almost 34% in less than 24 hours!

Stellar Lumens price chart
Stellar Lumens price chart

As you can see on the chart above, there is a real price jump. At the moment, XLM is at the 13th place in Coinmarketcap cryptocurrecnies rating, with $759 800 487 market cap and $0.045805 price. 

SEC May Signal Some Flexibility on ICOs

Looks like senior advisor for digital assets and innovation at SEC is not 100% against ICOs
14 December 2018   25

Some blockchain projects may be able to circumvent the requirements of US securities laws by contacting the Securities and Exchange Commission (SEC) for a so-called non-action letter. As SEC consultant on digital assets and innovations Valerie A. Szczepanik explained, such letters will not be issued often, but this does not mean that they cannot be received at all.

I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want. 
 

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

According to advisor, issuers of tokens have three ways to comply with the requirements of the laws: register an offer of securities, declare an exceptional case, or "make sure they're not a security."

In certain cases, the SEC may decide that “maybe this doesn’t fit the letter of our law or regulation but it fits the spirit and we can accomplish all the goals of investor protection”. In this scenario, the SEC may indeed issue such a letter, which will indicate that its employees do not recommend taking legal measures against a particular issuer.

The letters set forth exactly what the person plans to do or the entity plans to do and if it’s something that the SEC feels comfortable with we can release a no-action letter for exemptive relief saying ‘we can recommend no enforcement action.
 

Valerie A. Szczepanik

Senior advisor for digital assets and innovation, SEC

As reported, her remarks signaling a modicum of flexibility are notable in light of SEC Chairman Jay Clayton’s advice last month to anyone raising money by selling a token that they should “start with the assumption that it is a security.”

Speaking about the principles of recognition of tokens as securities, Valerie recommended to take into account the structure of sales. According to her, only in rare cases the token will not be recognized as a security. Most often, investors expect to profit from investments in such proposals, which is enough to recognize them as the spread of securities.