Northern Trust to Open Doors to Crypto Hedge Funds

According to the estimates, Northern Trust manages and stores $10.7B
01 August 2018   656

The giant of the financial services sector Northern Trust, which occupies 486th line of the Fortune 500 list, helps its clients to get acquainted with the crypto-currency ecosystem. This is reported by the Forbes.

Founded 129 years ago, a Chicago firm focused on institutional investors, corporations and high-income individuals, opened part of its services for cryptocurrency hedge funds, while exploring the possibilities for integrating the blockchain into its private equity unit.

According to the publication, Northern Trust has been working for several months with three "mainstream hedge funds", which began including cryptocurrencies to their investment portfolios.

According to the estimates, Northern Trust manages and stores $10.7B. Currently, the company does not provide cryptocurrency storage services directly, but it offers administrative services, such as assistance in assessing investments, meeting anti-money laundering requirements and verifying third-party custody services, for hedge fund interest and institutional investors interested in cryptocurrency.

President of the Northern Trust for Corporate and Institutional Services Pete Cherecwich, in a conversation with Forbes, said that although officially his company adheres to a prudent position in the issue of crypto-currency, it is ready for the fact that in the future the currencies on the blockchain will be issued at the state level.

I do believe that governments will ultimately look at digitizing their currencies, and having them trade kind of like a digital token — a token of the U.S. dollar — but the U.S. dollar [would still be] in a vault somewhere, or backed by the government. How are they going to do that? I don’t know. But I do believe they are going to get there.

Pete Cherecwich

President, Northern Trust for Corporate and Institutional Services

Cherecwich also said that within the framework of his organization there is a team consisting of more than a dozen specialists in blockchain and direct investment who must create a set of tools based on a private version of the corporate blockchain system of Hyperledger Fabric.

Last year, the head of the Northern Trust called for "prudent" regulation of the detachment, noting that "databases have never been regulated," and the establishment of new rules in this area carries "potential threats" too fast.

Facebook to Launch GlobalCoin in 2020, BCC Says

Facebook consults with representatives of the US Treasury Department and Bank of England  about regulating the initiative named Libra
24 May 2019   43

Operator of the world's largest social network Facebook Inc. will launch a new payment network based on its own cryptocurrency in the “dozen countries” in the first quarter of 2020, the BBC reports.

The publication claims that Facebook consults with representatives of the US Treasury Department and Bank of England Governor Mark Carney about regulating the initiative, code-named Libra.

At the same time, the Financial Times reported that Facebook is already in talks about listing GlobalCoin on the American exchanges Gemini and Coinbase. 

Sources of the publication said that Facebook is discussing with the trading firms Jump and DRW the prospects of market-making and liquidity.

Previously, the media claimed that the company is also in talks to support the initiative with Western Union, Visa and Mastercard.

Testing the network is supposedly scheduled for the third quarter of this year.

On May 2, Facebook registered Libra Networks in Geneva, Switzerland. Its profile involves the development of infrastructure and software, in particular, related to investment activities, payment transactions, financing, identity management, data analysis, Big Data, blockchain and other technologies.