Wall Street to Lose Optimism About Blockchain

Bloomberg reports that leading financial companies lowed their optimist regrading blockchain prospects
24 December 2018   787

Against the background of the bear market in 2018, leading financial institutions, including Goldman Sachs, Morgan Stanley, Citigroup and Barclays, somewhat diminished their optimism about the prospects for Bitcoin-based products. It is reported by Bloomberg.

Thus, the head of SolidX Daniel Gallancy is convinced that amid the hype, market participants were too optimistic about the likelihood that the largest financial institutions, one by one, will start to enter the new industry.

According to Bloomberg, only 20 Goldman Sachs customers showed interest to the company's flagship bitcoin product - the settlement forward. Note that in October, the bank invested in the Bitcoin custodian BitGo.

The Morgan Stanley initiative related to the launch of total return swaps tied to bitcoin futures has also stalled. Until now, this bank holding has not launched trade in these contracts. It postponed plans to launch cryptocurrency products and the financial conglomerate Citigroup.

British investment bank Barclays had postponed plans to launch a cryptocurrency trading platform. It has now become known that this project was abandoned by two managers who were hired last year. Barclays currently has no plans to launch a crypto-trading platform.

Many experts are convinced that the current state of affairs is mainly due to legal uncertainty, insufficient regulation of the industry, as well as little interest in digital assets from institutional investors.

At the same time, such giants as the New York Stock Exchange, Fidelity and TD Ameritrade, are actively working to build a powerful infrastructure for working with cryptocurrencies. As the demand from the institutionalists increases, the latter will provide an opportunity to launch many products based on digital currencies, analysts at The Block are sure.

Earlier, representatives of the financial holding JPMorgan announced about the decline in institutional interest to Bitcoin.

Bakkt to Release Consumer App This Year

The app can be used for a wide range of tasks, e.g., crypto and securities trading, virtual goods purchase, etc
23 January 2020   101

Institutional Investor Platform Bakkt will release an app for retail investors this year, with which users can pay with cryptocurrency.

According to the president of Bakkt Adam White at the World Economic Forum in Davos, the application can be used for a wide range of tasks. In addition to trading cryptocurrencies, it will support various virtual “goods” like points of loyalty programs.

In addition, in the future it is possible to add securities trading, as well as the creation of a portal for shops and merchants. That is, the application will be more like a traditional fintech product like PayPal than a solution from a cryptocurrency exchange.

Although the Bakkt platform was originally created for institutional investors, the new director of Mike Blandina is very serious about entering the retail market. Earlier, he said that the application for retail investors should be released in the first half of 2020.

I do not think we are there yet. What gives me optimism is that we are seeing a lot of developer interest. I am confident that someone is going to find something.


Adam White

President of Bakkt

 White added that the cryptocurrency market is still underdeveloped.