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Launch a Crypto Exchange in 30 Days: German Firm Offers White-Label Products for Startups

A German company says it combines the powers of IT and marketing to offer white-label products to blockchain companies – including exchanges.

A company says it is combining the power of IT and marketing to deliver high-security, functional and profitable pieces of software that not only work flawlessly, but also sell.

CPI says its software is scalable and geared toward the finance and blockchain industries. The firm offers white-label products that allow businesses to achieve their financial goals by converting casual visitors into paying customers. Among its suite of products is a crypto exchange that is available on the web and through mobile apps.

The platform delivers high-frequency trading for virtual currencies and fiat, along with assets such as real estate that have been tokenized on the blockchain.

According to CPI, it can help fledgling crypto businesses get their own exchange up and running in less than 30 days — complete with promotions across a plethora of channels to help generate traffic and revenue.

The German company describes this platform as its masterpiece because it supports a range of major crypto and fiat currencies. It can handle up to 10,000 orders per second (per market) and also comes complete with social trading — which means an exchange’s users can follow successful traders and emulate their strategies.

CPI has also become a payment service provider, enabling merchants to easily complete transactions in fiat and cryptocurrencies, both online and offline. This software can be easily integrated into any company’s existing infrastructure and is offered as a white-label product, meaning it can be adapted to incorporate their branding.

Additionally, the firm helps startups secure the financing they need to get off the ground. It offers an intuitive dashboard for initial coin offerings and security token offerings, enabling them to collect the money pledged to them by contributors. According to CPI, this service helped new businesses collect more than $250 million in 2018 alone.

Marvin Steinberg, founder of CPI Technologies, said:

“Since its inception, CPI Technologies has delivered successful projects, one after another. The company has more than 43 completed projects that have processed more than 32,000 BTC, helped increase visitors by 420 percent and sales by 182 percent.”

German-made

CPI says that all of its products are “100 percent made in Germany” and undergo exhaustive testing to ensure that they are easy for users to interact with.

The company takes pride in helping finance and blockchain businesses to cut costs when developing new products — without compromising on quality. According to CPI, all of its software works quickly and can withstand high levels of traffic, meaning that it runs as effectively for 10 users as it would for 10 million. And, for companies eyeing international expansion, CPI also claims that it can produce the marketing materials and translations needed to break into non-English-speaking markets.

Learn more about CPI here

The company performs deep analysis on all its software to ensure that conversion rates are as high as possible, delivering the best possible results to clients.

In addition, from a security and a compliance perspective, “double bookkeeping” is used in order to eliminate the disarranged financial records that can be seen on other platforms. CPI also stresses that it never has access to its customers’ funds and keeps them secure by ensuring that private keys are never stored on a server.

Unlocking growth

According to CPI, it isn’t enough in the competitive marketplace for businesses to have excellent software that does everything that customers expect. It’s also important to reach out to the public and show them why they should part with their hard-earned cash.

As a result, the company also offers marketing across a multitude of verticals. In addition to producing videos that enable prospective customers to learn more about a brand, CPI can also help devise social media strategies that help attract visitors and boost the companies’ profile. CPI also provides services for organic methods of outreach, including search engine optimization and paid traffic campaigns via Google or Facebook.

The company’s CEO is Maximilian Schmidt, a programmer with eight years’ experience who initially got involved with the blockchain industry in 2014. He is joined by Marvin Steinberg, a serial entrepreneur with 15 years’ experience in sales and marketing, who teaches the CPI marketing team.

In his work with CPI, Marvin has made it his mission to maintain growth and development, which has allowed the projects he works with to reach their funding targets and sign-up figures of over 2,000,000 users for white-label exchange platforms, the team highlights. The same mission is carried forward to the other projects Marvin is working on, including Steinberg Invest and Steinberg Marketing.

Learn more about CPI

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Spain: Stock Exchange Operator Pilots Collateral Pledges Digitization on Blockchain

Bolsas y Mercados Españoles and investment firm Renta 4 Banco completed a blockchain pilot for electronic certificates of collateral pledges.

Major Spanish stock market operator Bolsas y Mercados Españoles (BME) has completed its first blockchain pilot for electronic certificates of collateral pledges, according to an official press release published on March 15.

Implemented along with Renta 4 Banco, which is the only investment services firm listed on the BME, the new pilot intends to eliminate the use of physical certifications by digitizing all processes and providing network participants with real-time access to data.

The pilot’s proof-of-concept (PoC) consisted of the release of collateral pledged by Renta 4 Banco to cover customer’s positions at BME Clearing, BME’s central counterparty.

According to the announcement, the implementation of the blockchain-powered pilot enabled the parties to reduce total processing time by more than 80 percent.

The PoC was developed by BME’s division DLT-Lab, which researches the use of blockchain for improving existing financial procedures in collaboration with regulators and various financial institutions. To develop the pilot, BME’s DLT-Lab worked with infrastructures involved in the process and the BME subsidiaries BME Clearing, the Spanish central securities depository Iberclear and Renta 4 Banco.

According to the press release, BME and Renta 4 Banco will keep working on the initiative in order to launch the new system officially by the end of 2019.

Berta Ares, Head of Digital Transformation at BME, emphasized that distributed ledger tech (DLT) allows the parties involved in the process to both reduce operating times and provide legal certainty for electronic certificates, while maintaining privacy and compliance.

Previously, BME participated in a joint blockchain tech project to record the issuance of financial warrants. The initiative involved eight major European financial institutions, including Spanish securities regulator the National Securities Market Commission, BBVA, BNP Paribas, CaixaBank and others.

In early February, Cointelegraph reported on Switzerland’s principal stock exchange SIX Swiss Exchange plans to test blockchain integration for its upcoming parallel digital trading platform SDX in the second half of 2019. The blockchain-powered platform intends to minimize trading risks, as well as to expand the scope of tradable titles.

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Token 2049: Vitalik Buterin Says Non-Financial Blockchain Use Cases Are a ‘Harder Pitch’

Vitalik Buterin says that blockchain applications outside of finance face more difficulty gaining traction.

Ethereum (ETH) co-founder Vitalik Buterin says that blockchain applications outside of finance face more difficulty gaining traction, as the primary added value they offer is decentralization. Buterin made his remarks during a speech at crypto event Token 2049 in Hong Kong on March 13.

Buterin began by noting that finance is “realistically the first blockchain [application] that will probably achieve wide scale adoption,” and that even though he is a self-declared huge fan of other applications:

“The problem is that decentralization is basically their value add. With finance you’re competing with banks that take five days to do something interesting. With anything that’s not financial, chances are there is some internet thing that does what you want, that’s just centralized. So it’s a bit of a harder pitch.”

As examples of areas where blockchain can catch on beyond finance, Vitalik isolated digital identity, reputation and digital certificates in particular — all of which have use cases that are not necessarily confined to the use of cryptocurrencies or financial markets.

In his further discussion on the current state of blockchain adoption, Buterin appealed to event attendees to identify real-world applications that are developing “not just in theory, but on the ground.” Audience examples included micro-insurance, non-fungible tokens and gaming.

On the latter, Buterin said that while many people are committed to blockchain innovation from their conviction that it can tackle real-world problems with positive social impact, entertainment use cases such as gaming are valuable areas where the technology can draw high numbers of early adopters.   

Speaking of his personal commitments, Buterin highlighted decentralized applications (DApps), which allow multiple actors to share and cooperate on applications that are based on an underlying, decentralized blockchain protocol.

He proposed that the DApps use case can potentially redraw the existing technology and power landscape by leveraging a decentralized ecosystem to allow smaller players to compete with tech giants’ monopolies.

In a recent interview, Buterin stated he was trying to solve Bitcoin’s (BTC) limited functionality with the creation of Ethereum. He compared Bitcoin’s ability to do one thing and do it well, with the aspiration to make Ethereum more like a canopy for apps that can do almost anything.

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Growth of Crypto Industry Could Threaten Banks, Financial Stability: Basel Committee

The Basel Committee on Banking Supervision believes that cryptos are unsafe to rely on as a medium of exchange or store of value.

International banking authority the Basel Committee on Banking Supervision (BCBS) has issued a warning statement on crypto assets on March 13.

The BCBS is a committee of banking supervisory authorities hosted and supported by the Switzerland-based Bank for International Settlements (BIS) —  an organization made up of 60 of the world’s central banks

In today’s statement, the committee warned that the robust growth of the crypto industry could potentially “raise financial stability concerns and increase risks faced by banks.” The committee noted the risks were present despite the crypto market’s currently small scale in relation to the scope of the global financial system.

The BCBS also argued that crypto assets are “unsafe to rely on” as a medium of exchange or store of value, two of the main functions of money, implying that “cryptocurrency” is a misnomer. The authority also stated that crypto assets do not represent legal tender and “are not backed by any government or public authority.”

Pointing to a large number of risks associated with the interaction between banks and crypto-related businesses, including the risk of money laundering, terrorist financing, fraud and hacking, the BCBS provided a list of minimum requirements for a bank to operate crypto-related services.

According to the committee, any bank that decides to work with crypto-related assets should first ensure it possesses relevant technical expertise to adequately evaluate the risks associated with the field. The bank should also guarantee a clear and effective risk management framework, providing regular relevant data related to the bank’s crypto-asset risk profile.

Additionally, a bank should also publicly disclose any crypto-related services along with its usual financial disclosures, as well as be compliant with local regulations.

In January, the BIS published research claiming that departing from Bitcoin’s (BTC) proof-of-work system will not solve the major problems faced by the biggest cryptocurrency.

Previously, the BIS reported that 70 percent of global central banks are exploring the benefits of central bank digital currency (CBDC) issuance, while clear implementation plans and motivations significantly vary depending on contexts.

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Startup Finturi Raises $2.2 Million for Its Blockchain-Based Invoice Finance Platform

Startup Finturi has secured $2.2 million to let businesses secure loans against invoices with blockchain and AI.

Dutch blockchain startup Finturi has secured 2 million euro ($2.2 million) to enable businesses to secure loans against invoices via blockchain tech, the company tweeted on March 12.

Founded in September 2018, Finturi aims to help businesses finance invoices by linking them with financiers to borrow money against invoices, using blockchain and artificial intelligence (AI), according to a report by startup-focused publication EU-Startups.com on March 11.

Finturi has reportedly raised its first investment via an angel round led by NetSam Participaties BV, which evidently participated in an investment round for the first time, according to Crunchbase.

Finturi’s blockchain-based invoice finance platform is scheduled to launch in the third quarter of 2019. According to the report, the Finturi team plans to provide a completely peer-to-peer (P2P) platform in future that includes businesses’ clients.

Expressing concerns about many new businesses face difficulties with raising capital, Finturi CEO Johannes Brouwer stated that the firm aims to enable businesses to get loans against invoices within 24 hours. According to Finturi’s CEO, the upcoming platform will provide financiers with a “platform for investing in invoices with minimum hussle.”

The lead investor from NetSam Participaties BV said that blockchain tech combined with AI has a massive potential in eliminating inefficiencies in existing financial processes by cutting costs, accelerating processing time and providing  better security.

Recently, five Japanese banks entered into a partnership to launch blockchain-based financial services infrastructure. Targeting a range of financial operations for efficiency improvements, the banks will leverage IBM’s expertise during the development phase.

Last week, economist and notorious crypto critic Nouriel Roubini argued that blockchain has nothing to do with the future of financial services. Roubini excluded the term from the list of major technologies that he sees as leading to a manufacturing or fintech revolution, including AI, machine learning, big data and the Internet of Things.

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Instant Crypto Credit Line Provider Says It Processed $300 Million in Seven Months

A crypto lender that offers consumers an instant credit line says it has processed more than $300 million in seven months, making a net profit of $3 million.

A crypto lender offering instant loans in more than 45 fiat currencies says it has amassed more than 170,000 users — with $300 million processed over a seven-month period.

Nexo enables consumers to deposit their crypto assets into a secure wallet and instantly access a flexible credit line via automated approval and without the need for credit checks. They can then spend this credit by card or withdraw it to a bank account with a same-day or next-day transfer without incurring hidden fees or foreign exchange commissions.

The platform says its interest rates, which are deducted directly from a user’s available credit limit, start at an 8 percent annual percentage rate (APR) — with the company arguing that this is “much lower than the average credit card rate.” Repayments on loans are flexible and have no minimum requirements, and they can be completed at any time without subjecting additional costs.

Nexo has been featured on CV VC’s list of the 50 most important Swiss blockchain companies, and it says it is the only crypto lender that makes loans available to more than 200 jurisdictions around the world.

Substantial growth

According to Nexo, the “ravaging bear market” in the crypto world has not affected its performance, with the company earning a net profit of $3 million within the first seven months of its operation. As reported by Cointelegraph at the start of the year, lenders have enjoyed buoyant demand because borrowers have been reluctant to sell their assets when prices are depressed.

Back in December, the company paid a dividend of $912,071 to holders of its native NEXO token, representing 30 percent of the profits made. Nexo claims that the 4.80 percent annualized yield is higher than all of the dividend-bearing stocks in Warren Buffett’s portfolio — including big names such as Apple, JPMorgan Chase and Goldman Sachs. This comes despite Buffett’s ongoing skepticism about cryptocurrencies in general, with the billionaire investor recently describing Bitcoin as a “delusion” that has no unique value at all.

To underline why these financial results are important — with its business turning a profit, let alone being operational – Nexo cites research from Ernst & Young, which suggests that only 13 percent of the companies that conducted initial coin offerings in 2017 actually have a working product, with 71 percent have no offering on the market at all.  The firm adds: “Typically, within one year of a traditional venture-backed software startup, you would expect to see a significantly higher percentage of the companies with a functional early stage product.”

Insured and secure

According to Nexo, all of the crypto assets that it holds for users are insured against third-party hacks, copying, theft of private keys, insider theft or dishonest acts of employees. This custody insurance coverage compensates clients for losses of up to $100 million in the event of a security breach. Nexo has taken out an enterprise-solution policy offered by BitGo (backed by Goldman Sachs) and provided by Lloyd’s.

The company also says that it is a founding member of the Collateral Protection Insurance consortium, which ensures that borrowers are fully compensated if the assets they provide are destroyed, stolen or rendered unavailable.

Nexo has been backed by Michael Arrington, the founder of TechCrunch, with Arrington XRP Capital investing “substantial amounts” into the project. The company says that its website has now received more than 1 billion impressions — attracting 35,000 members in its Telegram community, along with more than 31,000 followers on Twitter. The crypto lender has also been featured by renowned business publications and news services, including Forbes, Bloomberg and Reuters.

Learn more about Nexo

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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The End of the First Crypto Decade

Massimo Morini is a veteran in investment banks and financial institutions including the World Bank. Some of his research on blockchain was reported here and here. The following is an exclusive contribution to CoinDesk’s 2018 Year in Review.  The end of 2018 is not the end of a year. It is the end of a decade, a decade that changed the world […]

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Advisory Council of UAE Banks Federation Considers Adoption of Blockchain in Banks

The Advisory Council of the United Arab Emirates Banks Federation discussed applying blockchain in its member banks to improve KYC processes.

The Advisory Council of the United Arab Emirates Banks Federation (UBF) discussed applying blockchain in its member banks, according to the Dubai-based English language newspaper Gulf News on Dec. 17.

The Advisory Council of UBF, a non-profit organization representing 50 member banks in the country, considered using blockchain to improve Know Your Customer (KYC) processes at entrant banks. UBF’s chairman, Abdul Aziz Al Ghurair, claimed that the discussed initiative represents an effort to create and maintain a “thriving banking ecosystem.”

Participants also discussed issues pertaining to the country’s national digital transformation program and Emiratization — a government employment initiative to place its citizens in roles in the public and private sectors.

Aref Al Ramli, chairperson of UBF’s Digital Banking Committee, presented a blockchain-based study that explores the benefits of digitizing various processes within member banks via distributed ledger technology (DLT). The study has outlined a number of blockchain applications by banking institutions, including cross-border payments, compliance reporting, customer onboarding, and others.

Al Ghurair said that emerging technologies are “continuing to shape customer needs and expectations,” putting banking industry participants “at the forefront of innovations.” He also claimed that new technologies like blockchain can assist banks in creating new revenue streams, “which will in turn drive sustained business growth.”

In late November, the governmental AI and Blockchain Joint Working Group hosted an annual meeting that concluded with the launch of two initiatives intending to boost blockchain and artificial intelligence (AI) development. At the meeting, participants considered strategies to attract foreign investments and build a necessary infrastructure by using AI and blockchain.

Also in November, Abu Dhabi-based Al Hilal Bank announced it completed “the world’s first sukuk transaction” based on blockchain technology. Sukuk, a legal tool that is known as “sharia compliant” bonds, allows investors to generate returns in compliance with Islamic law.

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Swiss Federal Council: Existing Financial Law Should Be Adjusted to Blockchain Industry

The Swiss Bundesrat has called for specific adjustments of existing financial laws in relation to the blockchain industry.

The Swiss Federal Council (Bundesrat) has said that existing financial law in the country suits the blockchain industry, but needs specific adjustments. The government suggested several amendments in an official statement by the Federal Department of Finance (FDF) published on Friday, Dec. 14.

In a meeting on Dec. 7, the Bundesrat adopted a report on the legal framework for blockchain and distributed ledger technology (DLT) in the financial sector. The report analyzes relevant framework provisions, outlines the need for measures and proposes concrete steps for developing the necessary legal conditions in the blockchain sphere.

Specifically, the report recommend the development of a new and flexible authorization category for blockchain-based financial market infrastructures. It also advocates for better legal clarity for rights holders of digital registers, and ensuring that decentralized trading platforms are subject to the Anti-Money Laundering (AML) Act.

The Federal Council also mentioned the results of a cross-departmental working group on the money laundering and terrorist financing risks of cryptocurrencies. The recent report is based on the work of the blockchain/initial coin offering (ICO) working group by the Federal Department of Finance that was reportedly set up in January 2018.

Following the report adoption, the Bundesrat has instructed the FDF and the Federal Department of Justice and Police to prepare an adjustment plan for the first quarter of 2019. The Bundesrat has also commissioned the FTF to research whether money laundering law should be reconsidered in accordance with certain types of crowdfunding.

Earlier this year, the Federal Council requested a report on the risks and benefits of launching its own government-backed digital cryptocurrency called the e-franc.

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Number of Crypto Users Nearly Doubled in 2018, Study Says

The number of crypto users has nearly doubled in the first three quarters of this year, according to a recently published study.

Cryptocurrency gained 17 million “verified users” this year, according to a study published by the Cambridge Centre for Alternative Finance Dec. 12.

According to the study, data show that in the first three quarters of 2018 the number of ID-verified cryptocurrency users nearly doubled, climbing from 18 million to 35 million.

Total crypto users, number of account and verified individuals

Total crypto users, number of account and verified individuals. Source: Cambridge Centre for Alternative Finance

According to a Bloomberg analysis of the study, the growth of the user base this year while crypto markets decline “could signal that an eventual recovery could be coming.” The analysis further notes that “most users are likely still speculators and long-term investors.”

In terms of breaking down who is investing in crypto, the Cambridge research team also claims that the data “indicates that the majority of users — both established as well as new entrants — are individuals and not business clients.” Those individuals, the document explains, could be “hobbyist retail investors, consumers, or users seeking a better investment or payment alternative.”

As Cointelegraph reported last week, despite dismal market conditions bringing down the dollar-value of its assets under management, Grayscale’s Bitcoin Investment Trust has seen a record number of Bitcoin (BTC) deposits this year, bringing its BTC holdings to over 1 percent of the coin’s entire circulating supply.

A November analysis of the Initial Coin Offering (ICO) market in Q3 of this year has defined the funding method’s performance an “overall disappointment.”