Coinbase is Now the World’s Largest Crypto Custodian, Binance Reveals ‘Venus’ to Rival Facebook’s Libra, Rakuten's Crypto Exchange is Live

August has been very interesting and super intense month in the Blockchain & Crypto world. Mastercard is developing its own crypto wallet, Coinbase has acquired Xapo and now is the world's largest crypto custodian by assets under custody, Binance is set to challenge Facebook's Libra, to name just a few.

So without further ado, let us dive deeper into what was trending and hot in Blockchain and Cryptocurrency world past month.

Mastercard Hints at Future Crypto Wallet Product With New Job Listings

The first week of August has started with the news from Mastercard, which appears to be inclining to enter the crypto wallet space with new job ads for blockchain and cryptocurrency-related product development.

According to updated job listings from the payments giant as of Aug. 2, the company is seeking to hire for the following roles: 

Director, Product Management - Crypto Currency/ Wallets, Director, Product Development & Innovation - Blockchain Solutions Architect, and VP, Product Management - Blockchain/Crypto.

Two of the new roles — the future director of product management for cryptocurrency/wallets and future VP of product management for blockchain/crypto — will lead a team focused on developing blockchain-based solutions that include wallets, the job listings reveal.

While neither ad discloses full details of the planned products’ scope, they do indicate that the new hires will be asked to identify solutions and concepts “that have strategic fit and value to Mastercard’s customers and partners.”

Mastercard, notably, is reported to be one of the partners in the Libra Association — a consortium established to govern Facebook’s planned stablecoin project, Libra.  

This leaves open the question of whether or not Mastercard plans to embark on a roadmap as a crypto wallet solutions provider to partner projects such as Libra, or potential other entrants into the crypto space.

??All You Need to Know About Facebook's Upcoming Cryptocurrency??

IBM Launches New Blockchain Platform for Supplier Data Management

Tech giant IBM and blockchain company Chainyard have jointly developed a new blockchain network for supply chain management. IBM announced the platform in a press release on August 5.

Alongside IBM, the Trust Your Supplier network’s founding members are also American brewing company Anheuser-Busch InBev, tech companies Cisco, Lenovo, Nokia, Schneider Electric, British pharmaceutical company GlaxoSmithKline and telecoms company Vodafone. The product is built on the IBM Blockchain Platform and aims to eliminate manual time-consuming processes and help reduce the risk of fraud and errors.

Per the release, Trust Your Supplier creates a digital passport for supplier identity on the blockchain network that enables suppliers to share information with selected buyers on the network. By deploying the platform, users purportedly can reduce the time and cost associated with qualifying, validating and managing new suppliers. Renee Ure, Chief Supply Chain Officer for Lenovo’s data center group, said:

Blockchain has the ability to completely transform how companies onboard and manage their supplier network for the future. Through Trust Your Supplier, both buyers and suppliers will see the procurement benefits of blockchain through reductions in cost, complexity and speed.

The Trust Your Supplier network joins an array of other blockchain-based projects from IBM. In mid-July, the company tripled the number of blockchain patents secured in the United States since 2018, boasting over 100 active patent families. 

Indian Telecom Jio Reveals Blockchain Network for 330M Customers

During the second week of August, Indian telecoms provider Reliance Jio Infocomm Limited (known as Jio) has pledged to build what it describes as one of the world’s largest blockchain networks.

Speaking at the company’s 42nd AGM (1.01) on Aug. 12, chairman and managing director Shri Mukesh D. Ambani said blockchain technology formed one of three main areas of expansion for Jio. 

Since debuting in 2015, the company has become one of India's major mobile networks, with a current user base of over 330 million people. 

“Over the next 12 months, Jio will install across India one of the largest blockchain networks in the world, with tens of thousands of nodes operational on day one,” Ambani promised. 

His comments came as India faces a backlash over its plan to ban cryptocurrency while championing blockchain technology at state level. 

IBM and Tata Become Governing Council ‘Owners’ of Hedera Hashgraph

Further, public distributed ledger Hedera Hashgraph has announced that IBM and Tata Communications have joined its governing council.

In a news release on Aug. 12, the platform described the addition of the two firms as a powerful endorsement of its hashgraph consensus mechanism.

Mance Harmon, the CEO of Hedera Hashgraph, said IBM and Tata Communications’ presence further decentralizes the platform’s governance, adding:

Our governance model, which includes a robust system of checks and balances, ensures power can’t be consolidated, while at the same time providing a stable and scalable platform on which developers can build.

Up to 39 multinational entities will make up the Hedera Governing Council. Each member can serve a maximum of two consecutive three-year terms, and they are responsible for eliminating the risk of forks and guaranteeing the integrity of the codebase.

A variety of enterprises from telecommunications, retail, law, financial services and technology are now represented on the council, Hedera said.

This governing council will be key in Hedera’s success says Leemon Baird, the company's co-founder and chief scientist.

"The members of the governing council are the actual owners of the company. They aren't just advisers. They are Hedera," explained Baird. "Hedera is an LLC that is split 39 ways — 39 companies own it, control it, and make all the decisions."

IBM’s vice president of blockchain technologies, Jerry Cuomo, described Hyperledger as the “de facto standard enterprises use to build, manage and deploy blockchain-based ledgers” — adding that he believes the platform could enhance and simplify the deployment of Hyperledger Fabric in enterprise environments.

Ankur Jindal, global head of corporate venturing and innovation and Tata Communications, expressed excitement at the prospect of joining other forward-looking businesses to deliver the potential of distributed ledger technology (DLT) to the wider economy. He added:

Innovations such as DLT, AI, and IoT change the way organizations and people interact with each other and with the world. These emerging technologies can be harnessed to strengthen our efforts to improve operational efficiencies and enable our customers’ digital transformation worldwide.

Coinbase Custody Buys Xapo Institutions, Continuing Rapid Expansion

During the same week, major crypto exchange Coinbase announced the news in a post on the company’s blog Aug. 15 that it is acquiring Xapo Institutions. The news follows rapid growth on the part of Coinbase’s year-old custodial wing, which only two months ago reported assets under custody (AUC) valued at $1.3 billion. 

According to the announcement, the new acquisition puts Coinbase Custody’s AUC at $7 billion.

Xapo is itself a major crypto wallet provider who has apparently been in negotiations with Coinbase Custody over the sale of its institutions business since the middle of May this year.

The announcement claims that Coinbase Custody now stores on behalf of more than 120 clients in 14 different countries. In affirming the company’s commitment to its institutional services, Coinbase wrote: “Our institutional range of products provides a seamless, powerful and compliant ecosystem for our clients to trade, store and interact with their crypto.” 

In July, Coinbase CEO Brian Armstrong said in an AMA session that he hoped to see Coinbase shift its focus from trading to broader adoption within the economy in the next five years. and Custody Platform in US.

Binance Reveals ‘Venus’ — Its Internal Project to Compete Facebook’s Libra

The 3rd week of August was especially interesting. It started off with major cryptocurrency exchange Binance announcing the launch of an open blockchain project Venus focused on developing localised stablecoins worldwide.

In an announcement published Aug. 19, the exchange argues it is well-positioned to launch such a currency ecosystem in light of its existing public chain technology, Binance Chain, wide user base and already established global compliance measures.

The exchange says it is seeking partnerships with governments, corporations, technology firms, and other cryptocurrency and blockchain projects in order to develop a new currency ecosystem that will empower both developed and developing countries

The exchange’s vision for the project, per the announcement, is to “build a new open alliance and sustainable community” that enlists partners who wield influence on a global scale.

Binance Chain, as the announcement notes, has already been running several native asset-pegged stablecoins, including a Bitcoin-pegged stablecoin (BTCB) and the Binance BGBP Stable Coin (BGBP) pegged to the British Pound.

Binance says it will leverage its existing infrastructure and experience with various regulatory regimes to consolidate a compliance risk control system and build a multi-dimensional cooperation network for the Venus project.

Binance’s ambitious new venture appears to compete directly with plans from social media titan Facebook to launch a fiat-pegged stablecoin, Libra, that would power a global crypto payments network embedded into the company’s three wholly-owned apps: WhatsApp, Messenger and Instagram.

With its choice of name, “Venus,” Binance is also stepping into the astrological waters of both Facebook’s Libra project and the Winklevoss Twins’ Gemini exchange and Gemini dollar.

??All You Need to Know About Facebook's Upcoming Cryptocurrency??

Japan’s Rakuten Officially Launches Crypto Exchange

Moreover, Japanese cryptocurrency exchange Rakuten Wallet has launched trading a year after acquiring Everybody’s Bitcoin.

Confirmed in a press release on Aug. 19, Rakuten Wallet, which is a subsidiary of Japanese e-commerce giant Rakuten, said spot trading of three cryptocurrencies — Bitcoin, Ether and Bitcoin Cash — was now live. 

In future, developers plan to release an app for iOS and Android, use of which will be mandatory for deposits and withdrawals. 

“Customers who already have a bank account with Rakuten Bank will be able to easily open a Rakuten Wallet account simply by entering the required information on the online application form,” the press release added.

Rakuten acquired Everybody’s Bitcoin in August 2018 for $2.4 million. Executives had originally announced the impending launch in April this year, but progress appeared to stall. 

Africa’s Largest Bank Joins Blockchain-Based Marco Polo Network

Finally, the week ended when Standard Bank, Africa’s largest bank by total assets, has joined blockchain-based trade finance network, the Marco Polo Network.

Standard Bank will now develop trade finance solutions alongside major global financial institutions such as French BNP Paribas and Dutch ING, according to a press release on Aug. 22.

Backed by the world’s biggest bank, the Industrial and Commercial Bank of China, Standard Bank is the first African bank to join the network, the press release notes. To date, the Marco Polo Network includes over 20 global financial firms such as Commerzbank, Anglo-Gulf Trade Bank, Danske Bank, NatWest, Alfa Bank, Bayern LB, Helaba, S-Servicepartner, RBI and Bradesco.

The Marco Polo Network is a collaboration of blockchain-focused enterprise software company R3 and Irish tech firm TradeIX that launched in 2017.The network provides a multi-asset class platform for broker dealer services and multi-currency transactions, including equities, derivatives and other related services. 

On Aug. 15, Commerzbank and Landesbank Baden-Württemberg executed a milestone transaction on the Marco Polo platform, enabling direct and instant integration of logistics provider Logwin AG into the digital process chain.

R3 has reportedly faced major internal disagreements over the core vision of its enterprise blockchain platform Corda, which caused frustration and delay. Unnamed sources stated that there were major differences of opinion between managers and developers regarding R3’s product design and development.

Swiss Crypto Banks Receive Licenses From Financial Regulator

The month ended strong and with lots of exciting things happening during the last week of August. The Swiss Financial Market Supervisory Authority (FINMA) has reportedly granted two banking and securities dealer licences to crypto-focused banks.

Two Swiss crypto-specializing firms, Seba Crypto AG and Sygnum have received banking and securities dealer licenses, the banks said in separate statements on August 26.

With the new license, Seba expects to officially launch its new trading platform platform in early October 2019, the company stated. Seba’s plans include the establishment of a digital asset platform for professional traders, firms and institutional clients, as well as custody storage and asset management.

Sygnum said that regulatory approval will allow it to bring its digital asset offerings to market, which include a custody and integrated liquidity platform for major digital currencies including Bitcoin, Ether and digital Swiss Franc tokens. 

The news follows FINMA’s newly released guidance on regulatory requirements for blockchain-based payments. The guidance targets blockchain service providers including exchanges, wallet providers and trading platforms.

FINMA emphasised that blockchain sector businesses are not exempt from Anti-Money Laundering and Know Your Customer requirements.

HSBC Is First Bank to Finance Transaction Via Hyperledger on We.trade

Further, multinational banking giant HSBC has reportedly become the first bank to complete financing transaction on European blockchain trade platform we.trade.

Since we.trade started the project back in 2017, HSBC recently financed a transaction on the platform within a second round of pilots that started in June 2019, economics magazine Global Trade Review (GTR) reported on August 22.

The transaction involved HSBC’s client Beeswift, a Midlands-based producer of protective equipment, and their sale to a Rabobank-banked Dutch firm, the report notes.

Based in Dublin, we.trade provides a Hyperledger Fabric-based tool for managing, tracking and securing open account trade transactions between SMEs in Europe. The platform intends to facilitate three major steps in SME trade, including access to trusted counterparties for direct online transactions, so-called bank payment undertaking, which is an online equivalent of a letter of credit, and financing requesting, according to the report.

To date, we.trade is reportedly backed by 12 shareholders, including Deutsche Bank, CaixaBank, Natixis, Nordea, Rabobank, Santander, Société Générale, and HSBC itself. According to GTR, all 12 banks had signed license agreements to use the platform by January 2019.

We.trade is not the only trade finance-related blockchain initiatives that HSBC is involved in. The United Kingdom-based banking giant is also piloting Corda-powered blockchain trade project Voltron. Following recent pilots, HSBC reportedly said that Voltron implementation reduced transaction time by 40%.

Germany’s Bitwala Launches All-In-One Mobile Bitcoin Bank App

Finally, on August 29, German blockchain-based banking startup Bitwala announced the launch of its smartphone app for Bitcoin banking on iOS and Android. Customers in over 30 European countries can now open a German bank account with integrated Bitcoin wallet and trading. 

The onboarding process for new customers has been directly integrated into the app. It uses a video identification feature, with which residents throughout the European Economic Area can verify and open an account within minutes. Bitwala CTO Benjamin James explains:

Once you have an account, you can seamlessly integrate your daily banking activities — whether in Bitcoin or Euro — into your everyday life.

The account comes with a free debit Mastercard, and euro deposits up to €100,000 ($110,100) are covered by the German deposit guarantee scheme.

The integrated Bitcoin wallet works just like conventional online banking. In this respect, it is different from an account at a cryptocurrency exchange as it can be used to manage daily finances.

Users can buy and sell Bitcoin directly from their bank account. The wallet has P2P functionality to transfer Bitcoin to friends and family, and transactions can be authorized using biometrics. Private keys are held by the customer at all times. 

Bitwala CFO, Christoph Iwaniez, spoke about account security:

With Bitwala your bitcoin are booked directly on the Blockchain via a multi-signature wallet. This is another way of saying that hacking Bitwala is as useless as breaking the Blockchain itself and that our customers are fully in control of their Bitcoin wallets at all times.

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading company's expansion into Europe , I'm an active member of FinTech community and a TechFin evangelist.

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