Northern Trust to Open Doors to Crypto Hedge Funds

According to the estimates, Northern Trust manages and stores $10.7B
01 August 2018   346

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.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   83

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.