Italian Bank is exploring Ethereum Derivatives

Banca IMI, a subsidiary of international banking giant Intesa Sanpaolo shows interest in Ethereum derivatives
22 November 2017   241928

A subsidiary of international banking giant Intesa Sanpaolo is interested in Ethereum derivatives. This is reported by the Coindesk.

In a new white paper released 22.11.2017, Banca IMI describes how an ethereum smart contract built by Intesa Innovation, Banca IMI and blockchain startup Oraclize makes it impossible for any counterparty to default by anticipating eventualities that might otherwise result from a legal dispute.

Massimo Morini, the bank's head of interest and author of whitepaper the paper represents a continuation of work he's been conducting at Banca IMI for two years. However, it also hints at what sets the bank apart in its approach to the blockchain sector.

We tried to design a business model exploiting the technology such that from a financial point of view it works on the public blockchain, because the guarantees are so much stronger than those we have with standard technology.
 

Massimo Morini,

Head of interest, Banca IMI

In the proof-of-concept (POC) detailed in the whitepaper, a smart contract was built using an ethereum testnet that communicated contract details to an external computation engine located in the cloud.

Instead of risking delays and relying on courts to resolve possible disputes, Morini said the team's derivatives workflow builds the terms of resolution into the smart contract itself.

In the end, it's enough that the smart contract keeps a little amount of funds to be used in case one stops paying, to guarantee that even if one stops paying, in a few hours, you are out of the contract and you have lost no money. This is really a different business model from what we are used to seeing in standard financial markets, but financially, it works.
 

Massimo Morini,

Head of interest, Banca IMI

Yet, even as one U.K financial regulator has warned against investing in derivatives that are cryptocurrency based, Morini remains convinced his work is headed towards a derivatives market that leverages the best of the old and the new. 

AION to Unveil Future Plans

Foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year
06 December 2018   141

The Aion Foundation, which is responsible for the development of the protocol of the same name and collected $ 23 million in Bitcoin and Ethereum on ICO in October last year, published a report in which it shared information about its financial operations. The report was prepared with the support of Deloitte, however, it cannot formally be considered an audit.

According to the Aion Foundation CEO Matthew Spoke, the foundation sold half the BTC and ETH, and it did it very well - at the beginning of this year. Having spent $ 10 million on launching its blockchain platform and opening offices in Canada, China and Barbados, the fund had assets of $ 14 million as of October 31 of this year, $ 5.8 million of which was placed in Fiat.

We’ve liquidated a decent amount of our bitcoin and eth that we raised as proceeds to make sure that we are stable in this type of period. As we continue to spend in our operations we’ll end up liquidating more bitcoin and eth over the course of the next few months.
 

Matt Spoke

CEO, Aion Foundation

The Aion protocol has already attracted active users, including the video game start-up ClanPlay, but Spoke claims that his company will continue to rely on hard currency.

The foundation has roughly 18 months of runway, Spock estimates, while developing his system to a level at which it can compete with centralized counterparts, such as Amazon Web Services, will take about five years. Aion expects to launch its first Java-based virtual  machine, thanks to which developers can use decentralized tools, by the second quarter of next year.

Spoke suggests that at this time his company will have to attract additional funding from cryptocurrency funds and accredited investors in exchange for their own tokens. His goal is to prevent the reduction of the team, which currently includes 61 people, and the operation of the Ethereum model of ConsenSys, a company sponsoring projects in its own ecosystem.

In the future, Aion intends to publish such reports on a quarterly basis and transfer data to the Messari network in order to increase the confidence of its tokens holders.