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AlphaPoint Helps Launch XRP-Based Cryptocurrency Exchange

Cryptocurrency services firm AlphaPoint is powering a new decentralized exchange, the company announced Monday.

DCEX, a San Francisco-based marketplace, formally opened registration for its platform, though clients will not be able to begin trading for a few more weeks. The exchange notably uses XRP as its “base currency,” meaning many of its trading pairs are denominated in the third-largest cryptocurrency by market cap, AlphaPoint CEO Salil Donde said in a blog post.

In its announcement, DCEX says it will be able to offer a total of 15 trading pairs, including XRP, bitcoin, litecoin, ethereum, ethereum classic, vechain, zcash, and stable-coin TrueUSD. The exchange further says it will add neo and ADA, among other trading pairs within months. DCEX also offers access to all 10 coins listed in the Bloomberg Galaxy Crypto Index, which include monero, EOS and dash.

The exchange is based on AlphaPoint’s distributed ledger, the announcement said.

DCEX uses XRP as a base in order rapidly move funds with low transaction costs, Donde wrote. Specifically, the XRP ledger is designed for high execution speeds and settlement within a few seconds, which can provide an advantage for traders.

The news comes just a month and a half after AlphaPoint announced it had successfully raised $15 million in its first round of venture capital funding. The funds were raised primarily through Galaxy Digital, the cryptocurrency merchant bank launched by billionaire investor Mike Novogratz.

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AlphaPoint Raises $15 Million In First Major Funding Round

Crypto services company AlphaPoint successfully raised $15 million in its first major round of venture capital funding, the firm announced Thursday.

AlphaPoint raised the funds through Mike Novogratz’s Galaxy Digital, the self-described cryptocurrency merchant bank. Chief executive Salil Donde said Galaxy Digital managing director Greg Wasserman is also joining his firm’s advisory board to provide “oversight, guidance and insights.”

Donde told CoinDesk:

“Galaxy and AlphaPoint are both leaders in the crypto and blockchain space, so there have been, and will continue to be, opportunities where we can collaborate for the benefit of mutual customers. With respect to future products and technology, AlphaPoint will continue to incorporate the needs of our customers and our prospective customers in conjunction with the ever-changing blockchain landscape around us.”

The new funds will help AlphaPoint continue its mission of using blockchain technology to digitize assets in both traditional and emerging markets, he said, referencing the Regulated Asset Backed Token (RABT) his firm introduced to provide liquidity into the real estate market.

In a statement, Wasserman noted that “the market opportunity for digitizing illiquid assets is tremendous. Consumers are demanding increased access, transparency and trust. Businesses are seeking increased liquidity with reduced fraud, risk and cost.”

Galaxy Digital was launched earlier this year by billionaire and former hedge fund manager Michael Novogratz, and reportedly raised a total of $250 million as a cryptocurrency investment venture.

“We are in the early stages of a fundamental transformation in financial markets due to the digitization of assets … we are excited to partner with AlphaPoint as we continue to help drive this revolutionary change in digital markets,” he said in a press release.

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AlphaPoint Launches Framework for Real Estate Blockchain Tokens

Crypto services firm AlphaPoint unveiled a new framework Monday aimed at supporting the launch of blockchain tokens backed by regulated assets.

Tokenized registered securities continue to be a hot topic as doubts swirl around the retail variety, and there have been a number of efforts seeking to put real estate on the blockchain. To that end, AlphaPoint has launched its Regulated Asset Backed Token (RABT) framework at CoinDesk’s Consensus 2018 conference in New York City.

According to the company, it has developed software that allows a token to be freely traded while also ensuring compliance with securities laws (such as, for example, selling a security token solely to accredited investors who live in the United States). The idea is to use blockchain as a conduit for introducing more liquidity into the real estate market.

A longstanding real estate and private equity firm, Muirfield Investment Partners, has joined with AlphaPoint in an effort to offer its investors a more easily tradeable way to participate in the property market.

“As a technology company and infrastructure providers, we can blend both public blockchains and the tokenization of securities and assets of any type,” Igor Telyatnikov, AlphaPoint’s chief operating officer, told CoinDesk, adding:

“There are huge penalties of the illiquidity discount, real estate being one of them.”

Thomas J. Zaccagnino, Muirfield’s founder, explained that due to their illiquidity, real estate funds tend to be highly structured in ways that might not be ideal.

While it is generally a profitable asset class over time, it can be too rigid, he contended – often, the funds have defined “lifespans” within which they operate.

That’s fine in normal times, but if your fund hits its deadline to exit – and it just happens to be 2008, or shortly after the US real estate market collapsed – that might not be the right time to sell for your investors.

He hopes that tokenizing real estate will allow for a “far more innovative and profitable investment vehicle.”

AlphaPoint’s plan is to see everything go on the blockchain. The actual asset won’t be on paper and tokenized, but that documentation will be stored using the tech. Further, it can use software to pay out dividends, if those are part of the deal, and to ensure that assets aren’t transferred to people they shouldn’t be.

“We can use trusted execution environments and oracles to govern what addresses these assets can be moved to and from and be able to apply the rules and smart logic onto a public blockchain or private blockchain,” Telyatnikov said.

Additional reporting by Pete Rizzo.

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AlphaPoint Unveils New Blockchain Network, CEO Hire

Blockchain software maker AlphaPoint has announced that it will create a new public network aimed at the digitization of real-world assets.

Dubbed the AlphaPoint Public Network (APN), the initiative is the latest from AlphaPoint, which to date has focused on creating white-label products for exchanges and, more recently, organizers of initial coin offerings (ICOs).

With the new network, the company is eyeing demand for ways to create and exchange digital versions of tangible assets. AlphaPoint will hold a public sale with the network’s associated token, scheduled to happen early next year.

The APN, the company announced today, will be built using Intel’s Software Guard Extensions (SGXs), or technology that can be used to close off certain types of sensitive data (typically private keys in the case of blockchains). In October, AlphaPoint had announced that it was working with Intel on a security-focused asset solution.

The announcement also comes as AlphaPoint names a new chief executive. Salil Donde previously served as an executive vice president for Nasdaq’s Global Information Services, working in that capacity since early 2015. Before working for Nasdaq, Donde was CEO of analytics startup Lewtan, which was sold to Moody’s in 2014.

In addition to being AlphaPoint’s new CEO, Donde is also joining its board of directors.

“The primary mission of AlphaPoint is to enable our customers to digitize real-world assets and launch new markets. The proceeds from the planned sale to accredited investors will allow AlphaPoint to build a new public blockchain network that delivers on this mission at a new scale,” said Donde.

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AlphaPoint to Secure Blockchain Assets with Intel's SGX Tech

Blockchain solutions provider AlphaPoint has partnered with technology giant Intel on a new security solution for digital assets.

As a result of the deal, AlphaPoint will release a new virtual machine offering, called the TrustedVM, to be backed by Intel’s Software Guard Extensions (SGXs). It’s the latest instance in which Intel’s security-focused solution has been utilized to create trusted computing environments for sensitive data, such as private keys that enable access to blockchain-based assets.

According to AlphaPoint, the hardware-backed solution can eliminate some of the privacy and security concerns that enterprise companies may have on the question of creating and exchanging digitized forms of physical assets.

Igor Telyatnikov, AlphaPoint’s president and chief operating officer, said in a statement:

“With this upgraded solution, we are enabling rapid implementation of blockchain technology into production within months instead of years. Our financial services customers want the benefits of distributed ledger technology without the security and privacy limitations of existing blockchain solutions.”

When reached for comment, Intel indicated that the partnership could form the basis for continued work in the area of digital assets.

“Alpha Point is focused on digitizing a variety of physical assets, which we believe will create a lot of opportunities for both Intel and Alpha Point,” a spokesperson for Intel told CoinDesk.

The exchange of digital assets is an area Intel has previously looked into, even unveiling a demo marketplace during an event earlier this year. In September, Chinese internet giant Tencent also tapped Intel hardware for blockchain security applied to the Internet of Things.

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