Software is eating up the world, as Marc Andreessen famously penned in 2011. Back then, companies such as Uber and AirBnB swept the globe in a blitz, turning entire industries on their head. Corporate boardrooms around the world braced for impact, wondering who might be next up for “Disruption”. One industry, however, remained annoyingly immune to this new spirit of reverence among incumbents. The financial sector, and banks specifically, seemed overweeningly confident in their position. They had their reasons to feel this way.
Until now that is. Rumors of Amazon expanding into financial services have been circulating for a while now, and at last Amazon-branded credit cards have hit the markets last month, with checking accounts, and possibly a mutual fund, next in line. Google and Apple are not far behind, with their respective Google Pay and Apple Pay services, morphing slowly into fully fledged remittance systems.
And why not? Google, Apple, and Amazon circulate more money annually than entire countries, with cash reserves most multinationals could only dream of. With the ever-growing array of services that are already being offered to their clients, from food deliveries, entertainment, web services, and transportation, these Big Three run closed ecosystems that could be regarded as miniature planned economies. Capturing the infrastructure on which money itself traverses is only the natural next step.
However, the Big Three are only a small part of the new software wave that is beginning to bite off hefty pieces of the traditional financial sector. A recent study has found that 17% of all currently operating financial institutions are newcomers that have entered the market after 2005. In jurisdictions in which regulation favors challenger institutions, the numbers are somewhat unbelievable. In the UK, for example, 63%[!] of all players are new entrants. The report also suggests that incumbent banks will likely start to see a significant impact on revenues as leading challenger banks are surpassing the one million customer threshold.
This should not come as a surprise. The cartel-like status big banks enjoy is mostly due to technological and regulatory barriers to entry. For obvious reasons, it has been incredibly hard to meet the security and oversight requirements needed to handle the public’s money. In contrast to other institutions which are free to compete in the open market, failure can’t be left open as an option for banks. Thankfully, recent advances in cybersecurity tech have made it easier and cheaper to safeguard digital money, and hence, banking licenses have become more accessible.
Talking about digital money – the praised blockchain industry has so far failed to provide the anticipated big leap forward. It seems like blockchains are always two years away from making banks obsolete. Digital currencies aside, however, blockchain technology as a bookkeeping and remittance infrastructure would make the management of digital money even safer and more accessible, opening the market for further competition.
Blockchain, alongside other new cybersecurity methods, make it much less resource intensive to secure and regulate digital money. It will take a while until regulators fully trust these new systems, but the moment they do, we’ll see a Cambrian explosion of Fintech newcomers. Software is already eating up the banking sector. On a quiet day, you can hear it chew.
Recruit’s funding division, RSP, announces investment partnership with COTI blockchain enterprise.
Recruit, a Japanese-based investment enterprise with a $50 billion market cap, announced that its next major blockchain investment will be in COTI. COTI is a revolutionary, block-less and miner-less blockchain designed to solve many of the scalability issues faced by cryptocurrency. Recruit has established a blockchain specific Blockchain Tech Fund in response to the growing number of opportunities within the blockchain space.
What is Recruit?
Recruit is an international investment leader offering a stake in all stages of business investment opportunities across a variety of tech industries. The company has a particular interest in blockchain, fintech, robotics, AI, and business application services. Companies including BitFlyer, Shift, Udacity, and 99Designs have benefited from strategic investment partnerships with Recruit.
Recruit created its Blockchain Tech Fund specifically to address the enormous potential of blockchain technology. To support the unprecedented expansion of blockchain-based technological advances, a high level of support from traditional investment partnerships and business models is necessary.
The Recruit Blockchain Tech Fund provides rapid funding of auspicious blockchain technology projects. RSP funding is available throughout all stages of project development, from seed round through growth and expansion.
The Blockchain Tech Fund uses token fundraising to support new business model development in its investment partnerships. This strategy effectively promotes blockchain business expansion as well as mainstream blockchain adoption.
Appeal of COTI
COTI, or Currency of the Internet, offers a unique and promising solution to a global issue using blockchain technology. This issue is scalability.
Regardless of technological advancements, traditional blockchain structures have proven incapable of scaling to meet the needs of a global market. This is particularly true as blockchain expansion continues to move into mainstream business fields.
COTI is based on a Directed Acyclic Graph [DAG] protocol. This structure eliminates both blocks and miners, drastically reducing size and energy expenditure. According to COTI’s website, the platform seeks to provide transaction services at a lower cost than even fiat payments.
Using COTI, organizations can build unique payment solutions. By digitizing a currency of choice, payers and payees can save time and reduce the significant cost of transaction services.
Further bolstering its security capabilities, COTI stores funds in offline, cold wallets, safe from hacking and cyber attack.
COTI and RSP
As COTI and Recruit move toward similar end-goals, promoting and developing the expansion of blockchain technology, both companies recognize the potential for widespread blockchain benefit.
Shahaf Bar-Geffen, COTI CEO, stated,
“We’re pleased to have made it on the radar of the RSP Blockchain Fund and its larger mission of making leading blockchain projects known to the world at large. This is a notable accomplishment for COTI and further anchors our belief in the enormous potential of the technology market in East Asia.”
Blockchain industry stands to see tremendous benefit from this partnership, as both parties seek to further the expansion and growth of blockchain throughout the traditional business enterprise.
XRP vs Stellar Lumens [XLM] Price Analysis: Bulls suppress bears to push market forward
Ripple’s XRP records relatively low 24-hour trading volume even as prices hold above $0.35
Bitcoin [BTC] can achieve better scalability, security via Schnorr Signatures, claims Andrew Poelstra
Ethereum [ETH] vs Tron [TRX] Price Analysis: Bull run expedites coins’ market momentum
Bitcoin Cash [BCH] rolls out iOS version of Bitcoin Cash Register
Tron [TRX] announces future trading on OKEx platform from May 20
Bitcoin’s [BTC] Lightning Network is awesome, says Blockstream’s Samson Mow
Crypto is replacing the US Dollar and no one seems to be noticing, claims prominent investor Robert Kiyosaki
Bitcoin [BTC] is still going to $100,000, claims Heisenberg Capital’s Max Keiser
Bitcoin Cash’s [BCH] Roger Ver adds Coinbase and Binance to his ‘safe list’
Bitcoin [BTC] is still going to $100,000, claims Heisenberg Capital’s Max Keiser
Satoshi Nakamoto is easy to get through; can be found by fools, claims John McAfee
XRP: Google Chrome extension to detect trustworthiness of select XRP addresses goes live
DigiByte [DGB]: Nationwide Merchant Solutions sets up DGB payments for businesses and merchants