DLT and DeFi Technologies Provide Opportunities for the Unbanked
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I’m a Disruptor, not disruptED. Fintech, Embedded Finance, Tech, Blockchain, Telecom, Wireless, AI, E-commerce. I make it happen. 📈💲🤝
Fnality coming to USA 🇺🇸uses blockchain technology to facilitate secure and efficient wholesale payments, focusing on tokenized assets and central bank money settlements. Here's a breakdown of how it works: Foundational principles: Central bank involvement: Fnality operates through regulated, DLT-based wholesale payment systems in key jurisdictions, overseen by their respective central banks. This ensures trust and stability in the system. Tokenized assets: Fnality focuses on tokenized versions of real-world assets like cash and securities, enabling efficient digital representation and transfer. PvP and DvP settlement: Fnality supports both payment versus payment (PvP) and delivery versus payment (DvP) transactions, ensuring simultaneous exchange of assets and funds for added security. Technical aspects: Fnality Payment System (FnPS): Each jurisdiction has its own FnPS, built on a private permissioned blockchain designed for high performance and security. Fnality settlement asset: Each FnPS uses a digital representation of central bank money as the settlement asset, ensuring its value is equivalent to fiat currency. Atomic settlement: Transactions are processed using an atomic settlement mechanism, meaning both parts (e.g., payment and asset delivery) happen simultaneously or neither happens at all, mitigating settlement risks. Interoperability: Different FnPS can interoperate through cross-chain atomic swaps, enabling seamless cross-border transactions. Overall benefits: Faster settlement: Compared to traditional systems, Fnality offers faster settlement times, potentially reducing settlement risks and improving liquidity. Increased efficiency: By streamlining processes and automating tasks, Fnality can improve operational efficiency for participants. Enhanced security: The use of blockchain technology and central bank oversight contribute to a more secure and resilient payment infrastructure. Support for tokenized assets: Fnality facilitates the settlement of transactions involving tokenized assets,which can unlock new opportunities for financial markets. However, it's important to remember that Fnality is still in its early stages of development, and some challenges remain, such as wider adoption among financial institutions and regulatory considerations. https://lnkd.in/g63vSN5a
Fnality International
fnality.org
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Leader and innovator in data privacy, financial data and data's governance, strategy, regulation, and standardization.
Stablecoins are an interesting technology, but it is frustrating - and dangerous - that operators can't figure out how to maintain parity with their peg. Not even one did, in the BIS study cited here (https://lnkd.in/eZfbc2CS). Is there a technology gap? Is it just not profitable? The paper doesn't explain, but if sponsors can't solve it then alternative technologies like improved payments tech or CBDCs will fill the gap that Stablecoins intended to fill. Thoughts? https://lnkd.in/ePFxtTvE
How stable are stablecoins? Not very says the BIS
finextra.com
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🚀 Fueling the Future: Fnality International's $95M Funding Round Welcomes Financial Powerhouses! 💰🌐 https://lnkd.in/dx3yvGnC Fnality International, the trailblazing blockchain settlement firm, has just announced a groundbreaking $95 million funding round, attracting investment from financial giants Goldman Sachs, BNP Paribas, and The Depository Trust & Clearing Corporation (DTCC). 🌟💼 The participation of these industry titans is not just an endorsement; it's a resounding vote of confidence in Fnality International's vision to reshape the landscape of blockchain settlement. This infusion of capital not only fuels Fnality International's growth but signifies a collective commitment to driving innovation in the financial industry. Key Highlights: 🔗 Blockchain Revolution: Fnality International's focus on blockchain settlement represents a pivotal step toward a future where financial transactions are seamless, transparent, and instantaneous. 💡 Strategic Collaboration: With Goldman Sachs, BNP Paribas, and The Depository Trust & Clearing Corporation (DTCC) on board, Fnality International gains strategic partners with unparalleled expertise. The collaboration promises to elevate the capabilities of blockchain settlement to new heights. 💰 Investment in Innovation: The $95 million funding round is not just an investment in a company; it's an investment in the future of finance. It highlights the importance of supporting innovative solutions that have the potential to transform how financial transactions are conducted globally. As professionals in the financial industry, let's applaud this strategic move and celebrate the foresight of those investing in the future. This collaboration is a testament to the exciting times ahead in the world of blockchain and settlement technology. 🚀🌐 Ayhan Köseoğlu Mario Reichel Harri Rantanen Sarah Mikhail, CITF, CSCF Julien ACHARD ☆ CertICM #Fnality #BlockchainInnovation #FinancialIndustry #FundingRound #Collaboration #DigitalFinance
Fnality adds Goldman, BNP Paribas, DTCC in $95m funding round - Ledger Insights - blockchain for enterprise
ledgerinsights.com
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🔥 #ReferenceNewsflash - May Edition ⚡️ Opinion Piece - Dive into the world of Stablecoins with insights from Axel Guyon on how they're bridging traditional finance with digital currencies, impacting global transactions, and the latest developments shaping their future. 🚀 General - Witness optimism with signs of an IPO resurgence, developments in pocket-sized AI by Microsoft, xAI’s $6 billion fundraising, Aurora's autonomous truck partnership with Volvo, and the hurdles AI hardware startups face. 🌍 Sustainability - Discover the latest from Sightline Climate on investment trends, the Symbiosis Coalition's commitment to carbon credits, Europe's rapid warming, and the growth of a $11 billion passive ESG fund. 💸 Blockchain & Crypto - Updates on the SEC’s Ethereum ETF approval, Tether's partnership with Chainalysis, movements in crypto ETFs and earnings at major firms like Coinbase and BlackRock, with insights on Bitcoin’s programmability and the transformational role of NFTs in art, plus a16z's take on Web3. 🔬 Life Sciences - Learn about the collaboration between Sanofi, OpenAI, and Formation Bio on AI-driven drug research tools, leading biotech and healthcare investments in 2024, and AlphaFold 3’s advancements in biomolecular structure prediction. 👀 Check it out here: https://lnkd.in/dmuTTGqg 📩 Don't miss our next edition - subscribe here: https://lnkd.in/eFTyUYVc
🔥 Reference Newsflash
medium.com
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🚀 Check out our #ReferenceNewsflash May Edition for the latest insights in VC, with a special focus on Stablecoins!
🔥 #ReferenceNewsflash - May Edition ⚡️ Opinion Piece - Dive into the world of Stablecoins with insights from Axel Guyon on how they're bridging traditional finance with digital currencies, impacting global transactions, and the latest developments shaping their future. 🚀 General - Witness optimism with signs of an IPO resurgence, developments in pocket-sized AI by Microsoft, xAI’s $6 billion fundraising, Aurora's autonomous truck partnership with Volvo, and the hurdles AI hardware startups face. 🌍 Sustainability - Discover the latest from Sightline Climate on investment trends, the Symbiosis Coalition's commitment to carbon credits, Europe's rapid warming, and the growth of a $11 billion passive ESG fund. 💸 Blockchain & Crypto - Updates on the SEC’s Ethereum ETF approval, Tether's partnership with Chainalysis, movements in crypto ETFs and earnings at major firms like Coinbase and BlackRock, with insights on Bitcoin’s programmability and the transformational role of NFTs in art, plus a16z's take on Web3. 🔬 Life Sciences - Learn about the collaboration between Sanofi, OpenAI, and Formation Bio on AI-driven drug research tools, leading biotech and healthcare investments in 2024, and AlphaFold 3’s advancements in biomolecular structure prediction. 👀 Check it out here: https://lnkd.in/dmuTTGqg 📩 Don't miss our next edition - subscribe here: https://lnkd.in/eFTyUYVc
🔥 Reference Newsflash
medium.com
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OK, time for a blockchain-defi rant based on a CBER webinar today. This is important stuff, please hear me out. The webinar featured great presentations from Xin Wun and Agostino Capponi My rant's no criticism of their work. Bottom line: blockchain projects urgently need to reorganize their under-the-hood-settlement or defi will die. Just-in-time-liquidity (JIT) describes the following: A “JITer” observes AMM trades prior to their processing in a block (e.g. from a mempool). The JIT then adds liquidity to the AMM pool right before the trades get processed and withdraws it right after. The trader is happy because the price impact is lower. Nice, right? No. Here's why. Prices move every day. Passive AMM liquidity providers (PLPs) face an inevitable positional loss from price changes because traders will remove the more valuable token and add the less valuable one from the AMM. PLPs also earn fees on trades and if the fees they earn over many, many trades outweigh the inevitable positional loss, then it’s still worth their while to make deposits. JITing destroys this rationale. Here is a JIT strategy that is (almost) guaranteed to provide profits. First, there are a few entities that work in unison “under the hood” to process transactions. I will simplify my description and fold them all into one entity: the miner (or validator, block proposer, whatever). The miner can order transactions and add their own ones. Their own transactions, if inserted profitably, on purpose, and as a reaction to existing transactions, are generally referred to as MEV. So for now assume that the miner acts as a JITer. Assume that as they build a block, a miner sees AMM transactions for a token X against a token Y for buy volume B and sell volume S. The miner can now profit as follows: - Make a flash loan for the largest possible amount of tokens X and Y. - Deposit these tokens as AMM liquidity. - Process the balanced part of the order flow. - Withdraw liquidity. - Repay the flash loan. - Process the remaining part of the order flow (the unbalanced portion) The JITer will earn trading fees on the balanced part of the order flow. The larger their flash loan, the larger will be the share of the fees on the trade that they earn (in the limit 100%). The existing liquidity providers face the following problems: - They will earn almost nothing on the balanced flow, - they may face the unbalanced flow (it may balance a little over many blocks but, on average will not). All in all, PLPs will have a significantly lower fee income. If done at scale, their fee income can go to zero in fact at which point liquidity provision is guaranteed to lose money. JITing really is the perfect example of cream-skimming that creates massively toxic order flow. Once this issue is fully understood and arbitrageurs/miners/builders start acting on it at scale, AMMs will collapse. This will be the end of defi. Mark. My. Words.
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If you don’t know this you can’t understand money… Money is analog. Crypto tech makes money digital. 💸 While the internet digitized and democratized access to data, information and knowledge, it didn’t do that for money. With every aspect of our lives more instantly accessible and transferrable, money has trailed behind. When we “pay” for something via credit card or debit card, no actual money is being immediately transacted. What occurs are messages and agreements between counterparties being executed rapidly, BUT the actual settlement of money doesn’t take place until later. In essence, information about money runs on digital rails, but settlement is very antiquated and cumbersome tech. Signs and costs of slow settlement abound in the financial world: - pending purchase or refund transactions in your bank account. - holds on checks. - high fees and long delays in sending money overseas. - T 2 asset clearing times in securities transactions. Digital money makes settlement of financial transactions instantaneous. Money is becoming digital in the following forms: - Stable coins - Central Bank Digital Currencies (CBDCs) - Cryptocurrencies (their primary role is not to be used as money but they can be) And the thing that will turbocharge the impact of digital money’s reach and impact is perhaps the most transformational of all: making value digital. That is happening through: - Tokenization Once money and value become digitally native, whole new worlds of possibility and opportunity open up. But that will be the focus for subsequent posts. First, we have to understand where we are to know where we are going. To that end, let me finish where I started with just some small adjustments. Money and value are analog. Crypto tech is necessary to make them digital. If you find value in this post, please like and comment below and follow me here for much more to come 🌟
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Cryptocurrencies: The Game-Changers in Future Finance The advent of cryptocurrencies has unquestionably been transformative, altering the landscape of finance in profound ways. These digital currencies, hinged upon the principles of decentralization and global reach, have breached borders and challenged traditional financial structures. This disruption has compelled the world to reevaluate its understanding of value, money, and investment. From the mechanisms that underpin cryptocurrencies to the complex web of regulations, from their impact on the investment landscape to their role in business and commerce – cryptocurrencies are changing the game, and understanding this transformation is crucial as we stride into the future. Understanding Cryptocurrencies Cryptocurrencies: Ushering in […]
Cryptocurrencies: The Game-Changers in Future Finance
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What is the Future of Money? Let's Discuss... The future of money is undergoing a profound transformation, with digital currencies like Bitcoin leading the way. The decentralised nature, security features, and profitability have positioned cryptocurrencies as viable alternatives to traditional fiat currencies. As the world continues to adapt to the digital age, the role of cryptocurrencies in shaping the future of money is likely to expand, challenging conventional financial paradigms and fostering a more inclusive and accessible global financial system. In the ever-evolving landscape of global finance, digital currencies have emerged as a transformative force, challenging traditional notions of money and financial systems. Cryptocurrencies, have been at the forefront of this digital revolution, not only reshaping the way we perceive money but also proving to be valuable assets in terms of profitability compared to fiat currencies. 1) Decentralisation and Security: One of the fundamental principles that set cryptocurrencies apart from traditional fiat currencies is decentralisation. Cryptocurrencies operate on decentralised blockchain networks, eliminating the need for intermediaries such as banks or governments. This decentralization ensures that transactions are secure, transparent, and resistant to censorship. Blockchain technology, the underlying architecture of cryptocurrencies, uses cryptographic techniques to secure transactions, making it virtually immune to fraud and hacking. 2) Profitability: Cryptocurrencies have proven to be lucrative investments for those who entered the market early. The finite supply of Bitcoin, capped at 21 million, has contributed to its perceived scarcity, often likened to precious metals like gold. This scarcity has fueled its value over time, leading to substantial returns for early adopters. 3) Inflation Hedge: Traditional fiat currencies are susceptible to inflation, a phenomenon where the purchasing power of money decreases over time. Cryptocurrencies, particularly Bitcoin, are often hailed as a hedge against inflation due to their capped supplies. This scarcity, coupled with increasing demand, has led some investors to view cryptocurrencies as a store of value similar to precious metals. 4) Global Accessibility and Financial Inclusion: Cryptocurrencies transcend geographical boundaries, offering a globalised and inclusive financial system. Cryptocurrencies can be accessed by anyone with an internet connection, providing financial services to individuals who may be excluded from traditional banking systems. In regions with unstable currencies or limited access to banking infrastructure, cryptocurrencies offer a viable alternative. This has the potential to empower millions of unbanked individuals, allowing them to participate in the global economy and secure their financial future.
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