More traditional banks are warming up to the idea of conducting business via blockchain platforms using cryptocurrencies. From Bitcoin to Ethereum to government-backed digital currencies, blockchain-based transactions are demonstrating advantages in terms of speed and transparency.
Bank of New York Mellon
Bank of New York Mellon, which has $1.7 trillion in assets under management, will be serving as the administrator and transfer agent for Bitwise Asset Management’s Bitcoin (BTC) exchange-traded fund (ETF), according to an updated S-1 form submitted to the US Securities and Exchange Commission (SEC) on September 11.
However, BNY Mellon as well as accounting and legal firms working on behalf of Bitwise, will only fulfill their assigned duties if US regulators approve Bitwise’s Bitcoin ETF application.
Earlier this year, Bitwise submitted its proposed rule change to the Securities Act of 1933 in order to list its Bitcoin ETF on NYSE Arca. The firm’s ETF application has not yet been approved, as regulators remain concerned about the potential for manipulation in digital currency markets. The SEC will be reviewing the ETF application on October 13.
On September 12, Santander, the world’s ninth-largest financial services company, announced the issuance of a $20-million bond directly onto the Ethereum blockchain. According to Santander’s management, it’s the world’s first bond to run entirely on a distributed ledger technology (DLT) network.
The Spanish financial giant used an ERC-20 token to represent the multi-million dollar bond, which was settled with another set of Ethereum tokens residing in a different account.
The buyer, one of Santander’s companies, purchased the bond at market price. During the transaction and exchange of the tokens, Santander held the cryptographic keys.
After the purchase order was finalized,