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UBS Group AG-led banks to launch blockchain-based platform USC token to facilitate cross-border trading

Biraajmaan Tamuly

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UBS Group led-Banks to launch a platform for cross-border trades enforced by a new Utility Settlement Coin [USC]
Source: Pixabay

Blockchain Technology, along with the idea of digital assets, has caught the attention of several major economic institutions. According to the Wall Street Journal, 14 major financial firms, including the likes of Barclays, Nasdaq, Credit Suisse Group, Banco Santander, ING, and Lloyds Banking Group, led by UBS group AG, have decided to come together to launch a blockchain-based platform where they would utilize a “Bitcoin-like” token to settle cross-border trading across the globe.

The utility settlement coin or USC coin, has already received an investment of GBP 50 million from all the firms involved in the newly formed company, Fnality International.

Hyder Jaffrey, Head of Strategic Investment at UBS, had this to say about the development,

“You remove settlement risk, the counterparty risk, the market risk. All of those risks add up to costs and inefficiencies in the marketplace.”

The new platform is expected to take off within the next 12 months, corroborating past reports which suggested that the platform will be fully operational by 2020.

The major objective of the token will be to operate both as a payments/settlement entity and as a “messenger” that would carry all the information essential to process a trade or transaction. This should indicatively reduce the cost and time consumer per transaction, initiated on the platform.

The project comes in light of several institutions now participating in the crypto-race. Facebook and JP Morgan are the most famous institutions who are new to the race, with their native coins expected soon. However, all is not rosy for banking and other non-financial institutions in the space. ABN AMRO for instance, recently backed out of its own crypto-project.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

Altcoins

Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report

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Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
Source: Unsplash

Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.





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