Crypto firms facing insolvency 'forgot the basics of risk management' — Coinbase
“The issues here were foreseeable and actually credit specific, not crypto specific in nature,” said three department heads at Coinbase. Department heads at Coinbase have weighed in on the market downturn amid solvency concerns around Three Arrows Capital, crypto lending firm Celsius, and Voyager Digital, saying the crypto exchange had “no financing exposure” to the companies.In a Wednesday blog post, Head of Coinbase Institutional Brett Tejpaul, Head of Prime Finance Matt Boyd, and Head of Credit and Market Risk Caroline Tarnok said Coinbase had not engaged in the “types of risky lending....
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The world's largest financial asset management firm is making a major push into digital assets, beginning with Bitcoin. According to a new blog post published on Thursday, cryptocurrency exchange Coinbase said it is partnering with BlackRock, the world’s largest financial asset manager, to provide its clients with direct access to crypto, starting with Bitcoin (BTC). Users of BlackRock’s institutional investment management platform Aladdin will receive crypto trading, custody, prime brokerage and reporting capabilities should they also elect to sign up for Coinbase Prime.Coinbase Prime is....
The regulatory agency asked crypto firms to adopt methods to ensure greater risk assessment for potentially problematic transactions. In a letter published on Thursday, the New York State Department of Financial Services, or NYDFS, recommended that all virtual currency companies operating under New York banking law adopt blockchain analytics to trace transactions. In supporting the decision, the regulatory agency wrote:"Wallet addresses are typically pseudonymous, with nothing on the face of the transfer tying back to the originator, beneficiary, or underlying beneficial owners."Therefore,....
Nuri stated that it has been facing a “lasting strain” on its business liquidity in 2022 due to “significant macroeconomic headwinds and the cooling down of public and private capital markets.” Nuri, a German start-up crypto bank with 500,000 customers filed for insolvency on Aug. 9, citing major crypto sell-offs, insolvency of Celsius and other crypto funds earlier this year as a reason for the move. The crypto bank said the move will “ensure the safest path forward” for all its customers, but also stressed that the insolvency will not affect its services, customer funds, investments, or....
It has been a chaotic week for digital assets. Two firms may be inching closer to insolvency while Coinbase, one of the largest crypto exchanges, laid off almost a fifth of its staff. The 2022 version of crypto winter has been unlike anything we’ve seen before. As I warned last month, the meltdown of the Terra ecosystem didn’t end with Luna Classic (LUNC) hitting zero. The biggest threat was contagion. As the dust began to settle, we finally got a glimpse of who was left holding the bag. Crypto lender Celsius and Singapore-based venture firm Three Arrows Capital suffered heavy losses....
Credit Suisse, Citi and HSBC are among seven financial firms to participate in a data management trial announced today and conducted with support from blockchain firms Axoni and R3CEV. Featuring buy-side and sell-side firms, the multi-month effort envisioned how a distributed ledger prototype could be built to enhance risk management, cost and efficiency issues when managing financial reference data. Also involved was the Securities Industry and Financial Markets Association (SIFMA), a trade group representing US securities firms. According to a release, the prototype used Axoni Core, the....