The first month of autumn traditionally marks the beginning of a new business season, and the cryptocurrency industry does not stand aside. ForkLog collected the most significant events of the last weeks related to investments and other institutional activities in a traditional digest.
Kraken exchange received bank status
The Kraken Bitcoin exchange was the first in the United States to receive the status of a special purpose depository institution (SPDI), giving it the functions of a traditional financial institution. The corresponding application of the California company was approved by the Wyoming Banking Council.
This structure was specially designed for cryptocurrency companies and will allow Kraken to abandon third-party providers, independently performing certain banking functions. These include accepting deposits, custody services and digital asset trust management.
With greater regulatory certainty, Kraken gains direct access to the federal payment infrastructure and expects to create a full-fledged bridge between the traditional financial system and cryptocurrencies. It will include its own debit cards supporting digital assets, as well as interest and retirement accounts.
To take advantage of the new capabilities, Kraken opens a new division headquartered in Cheyenne, Wyoming, tentatively named Kraken Financial. Further plans are for Kraken Financial to enter the global market.
MicroStrategy becomes the first public company to invest in bitcoin
Nasdaq-listed analytics software provider MicroStrategy has adopted a new reserve management policy that includes investments in bitcoin.
MicroStrategy's reserves will consist of fiat currency, its equivalents and short-term investments, as well as bitcoin. The board of directors decided to use cryptocurrency as the main reserve asset on an ongoing basis.
“This reflects our belief that Bitcoin, as the most popular cryptocurrency in the world, is a reliable store of value and an attractive investment asset. Its long-term potential is higher than that of fiat money, "said Michael Saylor, CEO of the company.
In August, MicroStrategy acquired 21,454 BTC (~ $ 250 million at the exchange rate at the time of the transaction). On September 14, the company additionally bought 16,796 BTC for $ 175 million. The total investment of MicroStrategy in the first cryptocurrency, including commissions and expenses, Michael Sailor estimated at $ 425 million.
Later, the head of the company said that the process of buying the second batch of cryptocurrency consisted of 74 hours of continuous trading, 88,617 applications for 0.19 BTC every three seconds or $ 39,414 in bitcoins every minute.
Dan Tapiero: Bitcoin will attract institutionalists due to the depreciation of the dollar
The interest of American institutional investors in gold in the future will have a positive effect on the mass adoption of bitcoin, according to Dan Tapiero, co-founder of Gold Bullion International and 10T Holdings.
According to him, a huge step in this direction was taken by the Ohio State Pension Fund of the Police and Fire Guards, which invested $ 168 billion - 5% of total investments - in gold, thereby insuring itself against inflation amid the global dollar recession.
“The depreciation of fiat is driving investment in gold now and in bitcoin in the future,” Tapiero said.
Singapore Stock Exchange adds cryptocurrency indices
The Singapore Stock Exchange (SGX) has announced the listing of the first ever cryptocurrency indices: the iEdge Bitcoin Index and the iEdge Ethereum Index.
Index support has been added as part of SGX's partnership with crypto-market data provider CryptoCompare, whose data is verified by regulators. Now any Singaporean company that wants to create a product or investment vehicle based on Bitcoin or Ethereum can verify the exact value of assets.
Despite the growing popularity of cryptocurrencies in Singapore, the country's Monetary Authority is still working on regulating the industry. The new SGX indices will help financial institutions create cryptocurrency products when the authorities decide on the basic rules for regulating the industry.
Vienna Stock Exchange adds Bitcoin and Ethereum products
Bitcoin and Ethereum ETPs from cryptocurrency exchange product provider 21Shares have been listed on the Vienna Stock Exchange (Wiener Börse). On September 1, exchange products were listed on the exchange under the tickers ABTC and AETH, associated with BTC and ETH.
Wiener Börse has become the third regulated market in the world to list bitcoin, 21Shares said.
“The largest exchange in DACH countries (Germany, Austria and Switzerland) has accepted Bitcoin-ETP. This achievement once again demonstrates institutional interest and, more importantly, regulatory recognition of this new digital asset class, ”said the Swiss company.