Bitcoin News

Nasdaq Blockchain Pilot Handles Margin Calls and Collateral Delivery 'Within Minutes'

Posted by Marie Huillet on

Stock exchange operator Nasdaq has successfully tested a blockchain-based Proof-of-Concept.

Stock exchange operator Nasdaq has successfully tested a blockchain-based Proof-of-Concept (PoC) that provides an efficient 24/7 securities collateral solution, according to a press release published Tuesday, June 19.

The new blockchain platform has been jointly developed by Nasdaq, ABN AMRO Clearing, EuroCCP and Euroclear, and aims to address the challenges facing Central Counterparties (CCPs) when it comes to making margin calls after stock exchange trading hours are over.

Margin calls are made when an investor who holds a margin account with a brokerage firm is required to deposit additional funds in order to satisfy a ‘maintenance margin’ - a minimum amount of equity - that serves as collateral against potential losses.

According to EuroCCP CEO Diana Chan, in the current system, counterparty risk protection for equity trades is “not well-served” by global market infrastructures.

Derivatives clearance must be made in full compliance with European Market Infrastructure Regulation (EMIR), and clearing participants and CCPs are facing “significant” difficulties when making margin calls and securing collateral transfers after hours and across multiple time zones.

The press release reveals that the new blockchain PoC has successfully “demonstrated that a shared, resilient network can be built between collateral givers, collateral takers and intermediaries,” enabling parties “to handle the margin call, the securities collateral delivery and the return process within minutes.”

Coen van Walbeek, Global Head of Treasury and SBL at ABN AMRO Clearing, is quoted as saying that the PoC is “a breakthrough for the CCP model,” with the head of Nasdaq Clearing adding that the project is an “excellent example” of blockchain technology’s “huge potential to transform markets everywhere.”

Nasdaq’s partners in developing the new blockchain PoC are among the world’s leading financial service firms. Euroclear holds “€28.6 trln” in clients’ assets, ABN AMRO Clearing, processes “over 16 mln” trades daily and “is consistently ranked as a top 3 clearing house in most time zones, and EuroCCP is “the most connected CCP in Europe,” with “access to 82% of equity trades executed on 26 trading platforms.”

Earlier this month, Nasdaq’s CEO Adena Friedman said that while blockchain technology still needs development to improve its scalability, the technology could potentially in future address the “massive inefficiencies” on private securities markets, and is a “fascinating technology that could be quite disruptive” over the long term.

In April, the CEO said that if regulatory clarity will be forthcoming, “certainly Nasdaq would consider becoming a crypto exchange over time.”

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PR: After a Sold-Out 1st Pre-Sale Stage, DECOIN Finishes Development of Blockchain Environment

Posted by Bitcoin.com PR on

After a Sold-Out 1st Pre-Sale Stage, DECOIN Finishes Development of Blockchain EnvironmentDECOIN’s 2nd pre-sale stage, featuring a 39% bonus, ends Friday, June 22nd..
A Community-Driven Development Solution

DECOIN, a revenue-sharing exchange and trading platform, has a simple, albeit ingenious solution to the problems hampering cryptocurrency exchanges. They use proof-of-stake (PoS) as a means of validating DECOIN wallet transactions and sharing the value created by the exchange. Instead of requiring a MasterNode, users with a minimum amount of DECOIN are entitled to a proportionate return on their investment.

The post PR: After a Sold-Out 1st Pre-Sale Stage, DECOIN Finishes Development of Blockchain Environment appeared first on Bitcoin News.

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Bithumb Exchange's $31 Million Hack: What We Know (And Don't Know)

Posted by Wolfie Zhao on

Hours after an exchange breach that saw $31 million stolen from Bithumb, more details have surfaced, but some questions still remain unanswered.

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Retail Adoption of Crypto Would “Bring the Internet to a Halt” – BIS Report

Posted by Samuel Haig on

Retail Adoption of Crypto Would "Bring the Internet to a "Halt" - BIS ReportThe Bank of International Settlements (BIS) has leased a chapter from its forthcoming annual report that delivers a critical appraisal of bitcoin and cryptocurrency. The report attacks virtual currencies from several main standpoints: claiming that cryptocurrencies do not effectively perform monetary functions due to price volatility, that the retail adoption of blockchain-based payment mechanisms would […]

The post Retail Adoption of Crypto Would “Bring the Internet to a Halt” – BIS Report appeared first on Bitcoin News.

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EOS Locked 7 Accounts and It Has Implications for Everyone in Crypto

Posted by Brady Dale on

Seven EOS accounts were frozen to prevent token theft. But does this seemingly moral decision spell havoc for the broader crypto market?

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