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Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency

Sarvesh Kumar



Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency
Source: Pixabay

Facebook’s plan of introducing its own global digital currency has taken a new turn as Mark Zuckerberg held meetings with large trading houses and active cryptocurrency exchanges. The Facebook CEO also held a meeting with his former rivals – The Winklevoss brothers, according to Financial Times.

A team at Facebook has been working on developing a digital currency for over a year and aims to facilitate users to not only make transactions via the Internet, but also in the real world.

At the company’s developer conference in April, Mark Zuckerberg had said,

“Payments is one of the areas where we have an opportunity to make it a lot easier. I believe it should be as easy to send money to someone as it is to send a photo.”

Facebook also held talks with Jump and DRW, high-frequency trading firms based out of Chicago, with respect to making its digital coin at par with the value of the Dollar. Facebook also spoke to Coinbase and Gemini, two prominent cryptocurrency exchanges, to let users store their coins safely and convert them into other crypto or fiat currencies for further use.

Gemini, founded by the famous Winklevoss brothers, is known for its links to the regulators and also has the permission to function as a trust company under the New York banking law. Gemini was among the first two companies to get approval from the state for their digital currency, Gemini Dollar to be at par with the US Dollar.

Winklevoss twins, in the past, had sued Facebook for “stealing their idea of building a social media network”. They claimed a compensation of $65 million and also received $1.25 million worth of shares in the company.

David Marcus, the former PayPal President who is in charge of Facebook’s cryptocurrency team, had a meeting with the senior executives of Facebook to discuss the announcement of their plans. Recently, Facebook had also registered Libra, their Fintech arm, in Switzerland.

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I am a journalist here at AMBCrypto. I cover news on prices of various coins in the crypto-verse and also work on the latest news of coins like - Bitcoin| Ethereum| Litecoin and more.


ErisX goes all hands on deck to launch a Bitcoin Futures market




ErisX goes all-hands on deck to launch a Bitcoin Futures market
Source: Unsplash

ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.

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