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<p class="MsoNormal">Since Bitcoin's beginnings in 2009, cryptocurrencies have gone a long way. While Bitcoin and other cryptocurrencies such as Ethereum and Litecoin have grown in popularity, they remain highly volatile and unsuitable for daily transactions. Stablecoins come into play here. </p><p class="MsoNormal">Stablecoins are cryptocurrencies that are meant to keep their value stable and provide stability for routine transactions. We will look at the evolution of stablecoins, from Tether to Central Bank Digital Currencies, in this article. (CBDCs).</p><p class="MsoNormal">Tether Is the World's First Stablecoin</p><p class="MsoNormal">Tether (USDT) was the first stablecoin to gain traction in the cryptocurrency market. Tether, which was launched in 2014, is a stablecoin that is tied to the US dollar, with one USDT equaling one US dollar. Tether is intended to provide stability for cryptocurrency traders and investors, who can use it to hedge against market volatility. Tether has grown to become one of the most popular cryptocurrencies, with a market worth of more than $60 billion as of March 2023.</p><p class="MsoNormal">Alternative Stablecoins</p><p class="MsoNormal">Other stablecoins have emerged after the debut of Tether, including USDC, DAI, and TrueUSD. These stablecoins are intended to give the same level of stability as Tether, but through various techniques. USDC, for example, is supported by a group of firms, including Coinbase and Circle, and is routinely audited to ensure that it is entirely backed by US dollars. DAI, on the other hand, is a decentralized stablecoin backed by other cryptocurrencies like Ethereum.</p><p class="MsoNormal">Digital Currencies Issued by Central Banks (CBDCs)</p><p class="MsoNormal">Stablecoins have grown in popularity among cryptocurrency enthusiasts, although they are not commonly accepted in the mainstream market. Central Bank Digital Currencies (CBDCs) come into play here. CBDCs are digital counterparts to fiat currencies issued by central banks. CBDCs, unlike cryptocurrencies, are backed by the government's complete confidence and credit, giving them a higher level of trust and stability.</p><p class="MsoNormal">CBDCs are still in their infancy, but some central banks, including the People's Bank of China and the European Central Bank, have begun to investigate the concept. CBDCs have the ability to change the way we use money by providing various advantages over existing fiat currencies and cryptocurrencies.</p><p class="MsoNormal">CBDCs Have Many Advantages</p><p class="MsoNormal">CBDCs can provide a more efficient and secure payment method, which is one of their primary advantages. CBDCs can be transferred and received quickly, eliminating the need for third-party middlemen such as banks or payment processors. This can lower transaction costs while increasing payment speed and efficiency. CBDCs can also provide a more secure payment system because they are backed by the government's complete faith and credit.</p><p class="MsoNormal">CBDCs can also help to make the financial system more inclusive. Traditional financial systems can be exclusionary, with many individuals lacking access to fundamental financial services, particularly in developing nations. </p><p class="MsoNormal">CBDCs can be accessed via a smartphone, which is becoming more popular in developing countries. As a result, CBDCs may offer a new opportunity for people to gain access to financial services and participate in the global economy.</p><p class="MsoNormal">CBDCs' Challenges</p><p class="MsoNormal">While CBDCs have numerous potential benefits, there are several obstacles that must be addressed. The possible impact on traditional financial institutions, such as banks, is one of the key worries. </p><p class="MsoNormal">CBDCs, which give an alternate method of keeping and transferring money, have the potential to undermine the traditional banking system. This could result in employment losses and lower profits for traditional banking firms.</p><p class="MsoNormal">Another issue is the possibility of CBDCs being used for illegal purposes such as money laundering or terrorism financing. Because of the anonymity and decentralized nature of cryptocurrencies, it is impossible to track the flow of funds, which criminals may abuse.</p><p class="MsoNormal">To address these concerns, numerous central banks are investigating methods of implementing CBDCs that ensure transparency and traceability. Some CBDCs, for example, may demand customers to go through Know Your Customer (KYC) checks, which can aid in the prevention of money laundering and other illegal activity. </p><p class="MsoNormal">Furthermore, certain CBDCs may be structured with a tiered access scheme, in which users must supply specific information in order to access different tiers of the system.</p><p class="MsoNormal">Another issue to consider is the potential impact on privacy. CBDCs may capture and keep vast quantities of personal data while providing a more secure and efficient payment method. This has sparked concerns about the possibility of government surveillance and infiltration into individuals' financial lives. </p><p class="MsoNormal">To address these concerns, some central banks are investigating the use of decentralized systems like as blockchain, which can allow anonymity while maintaining transparency and traceability.</p><p class="MsoNormal">Stablecoins and CBDCs in the Future</p><p class="MsoNormal">Stablecoins and CBDCs are significant advancements in the way we use money. Stablecoins have grown in popularity among cryptocurrency enthusiasts, although they are not commonly accepted in the mainstream market. </p><p class="MsoNormal">CBDCs have the potential to change this by combining the benefits of cryptocurrencies with the stability and trust of traditional fiat currencies.</p><p class="MsoNormal">CBDC development is still in its early phases, and it may be several years before they are generally accepted. CBDCs, on the other hand, have enormous potential benefits, and many central banks are looking into ways to implement them. </p><p class="MsoNormal">CBDCs, as they become more common, have the potential to alter the way we use money and deliver a more equitable, efficient, and safe financial system.</p><p class="MsoNormal">Is a digital divide inevitable?</p><p class="MsoNormal">Central Bank Digital Currencies (CBDCs) <a href="https://www.financemagnates.com/cryptocurrency/coins/stablecoins-and-monetary-policy-implications-for-central-banks-and-regulators/" target="_blank" rel="follow">have been gaining momentum </a>as many countries are exploring the possibility of issuing their own digital currencies. While CBDCs could bring many benefits, such as increased financial inclusion and efficiency, there is a real risk that they could also widen the digital divide.</p><p class="MsoNormal">The digital divide refers to the gap between those who have access to digital technologies, such as the internet and smartphones, and those who do not. This gap can be seen in both developed and developing countries, with many individuals lacking access to the digital tools necessary to participate in the modern economy.</p><p class="MsoNormal">CBDCs could widen the digital divide in several ways</p><p class="MsoNormal">CBDCs require individuals to have access to digital infrastructure, such as smartphones and internet connectivity, to access and use them. Individuals who do not have access to these technologies will be excluded from the benefits of CBDCs, including faster and more efficient transactions.</p><p class="MsoNormal">Moreover, CBDCs could exacerbate existing inequalities in financial access. While CBDCs could increase financial inclusion for those who are unbanked or underbanked, they could also deepen the divide between those who have access to traditional banking services and those who do not. In some cases, CBDCs could even replace traditional banking services, further marginalizing those who are already financially excluded.</p><p class="MsoNormal">Third, CBDCs could increase the risk of digital fraud and cybercrime. With the rise of digital currencies, cybercriminals have increasingly targeted individuals and businesses with phishing attacks, malware, and other scams. The introduction of CBDCs could create new opportunities for these criminals, further widening the digital divide and putting vulnerable individuals at risk.</p><p class="MsoNormal">To mitigate the risk of widening the digital divide, it is essential that CBDCs are designed with inclusivity in mind. Governments and central banks must work to ensure that digital infrastructure, such as internet connectivity, is accessible to all, regardless of income or location. Additionally, CBDCs must be designed with strong security measures to prevent fraud and protect vulnerable individuals.</p><p class="MsoNormal">Conclusion</p><p class="MsoNormal">These and stablecoins are the next phase in the growth of digital currencies. Stablecoins have grown in popularity among cryptocurrency enthusiasts, although they are not commonly accepted in the mainstream market. CBDCs have the potential to change this by combining the benefits of cryptocurrencies with the stability and trust of traditional fiat currencies.</p><p class="MsoNormal">CBDCs have the potential to transform the way we use money by creating a more efficient, safe, and inclusive financial system. However, issues such as the possible influence on established financial institutions and privacy concerns must be addressed. </p><p class="MsoNormal">As CBDCs evolve, it will be critical to solve these problems in order for them to deliver on their promise of a stronger financial system.</p> This article was written by Finance Magnates Staff at www.financemagnates.com.
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Conventional language learning websites and apps are endemic. A simple Google search will yield dozens. While these Web 2 platforms may claim to utilize exclusive cutting-edge methodology and guarantee results, on closer examination, they are all nearly the same, and more than 85% of their users give up within a month. But now there’s a language learning app that is actually truly unique. LetMeSpeak makes use of Web3 technology to create a blockchain-based network of language learners, whose users are actually paid exchangeable cryptocurrency to learn thanks to the ecosystem’s tokenomic economy. LetMeSpeak currently uses the Solana Blockchain as the core of its infrastructure, as it provides low transaction fees (from $0.00001) and high throughput (up to 50,000 transactions per second). However, there are plans to ultimately incorporate cross-chain solutions like Wormhole that will make it easier to bring in crypto-natives from other chains, while additional L1s may be integrated to provide the smoothest possible experience to users at scale. NFT Characters A user’s main asset in the system is a unique NFT character. These are purchased with LSTAR, the ecosystem’s native cryptocurrency, which is freely transferable and can be exchanged for digital dollars in the open market. NFT characters, LSTAR, and other assets are held directly by users through their wallets and are freely transferable. When starting out, learners can obtain a free character for a 3-day trial to get a taste of the learning experience, but the ability of these ‘common’ characters to earn is very limited. After that, they must buy an NFT character to continue. By successfully completing tasks using English in real-life situations, such as traveling or parties, users can earn LSTAR. That fuels their motivation, pushing them to continue studying. NFT characters come in three levels of rarity – Uncommon, Rare, Epic, and Legendary – and each is minted with its own unique parameters. The main difference is the level of rewards they can earn per successful learning action. The greater the rarity, the higher the rewards. This is very different from ‘collectible’ types of NFTs, where all of the value comes from perceived rarity. Rarer characters are minted with higher inherent talent and learning speeds, and these attributes do not change. They also start out with better language skills. This means rarer characters can progress through the app’s storyline faster and earn more crypto currency as they learn. Characters also accumulate experience points (XP) as they progress. The higher a character’s XP level, the higher their rewards rate. Character’s language learning skills – Vocabulary, Pronunciation, Listening, and Grammar – increase as well as users get practiced in the app. All characters start at Level 1 and advance to new XP levels and up their skill stats when they accrue enough points by learning. In order to complete learning tasks and earn rewards, characters must expend energy. At the beginning of each day, each character has 100 energy points to spend, which can be converted to tokens and XP through study. Characters with faster learning speeds will earn more XP for each unity of energy spent. Energy is gradually restored to 100 points in 24 hours. Characters can ‘Learn-and-Earn’ in LetMeSpeak as long as they have a valid visa to be in the ecosystem. These are granted to characters when they are minted with a validity from 4-6 months from time of activation, depending on the rarity of the character. Once you have a character, you’re ready to ‘Learn and Earn’. There are a couple of ways of doing this. The main way is to progress through a game-based storyline that consists of many scenarios that are as close to life as possible. Learners earn LSTAR by employing new vocabulary and grammar to complete each task as they move forward along the path. Each episode has a real-life goal, from buying a bus or train ticket, ordering in a restaurant, or checking in at a hotel, to more complicated work-related negotiations. All the content is in modern, authentic, everyday English accompanied by full audio voiceovers by native speakers from the United States. The system has its own adaptive speech recognition algorithm that helps learners monitor their progress and improve their pronunciation over time. Another way to earn LSTAR is to participate in PvP games, where a user can challenge another user to a race. Correctly answering grammar questions fuels their vehicles and the winner takes the lion’s share of the tokens, which adds an element of competitiveness to further spur motivation. LetMeSpeak’s ‘Learn-and-Earn’ model boosts the speed and success rate of acquiring useful new skills and knowledge by combining learning with financial incentives and instant gratification. You can’t make millions, but the rewards are a nice bonus that can be spent on something tangible, like lunch or coffee, and this fuels motivation. Tokenomics With the LSTAR that users earn, they can: Exchange LSTAR for USDC in the in-app exchange, which can then be converted into actual currency. Purchase additional characters or mint them via invites. Learners can then use these NFTs to earn more LSAT, sell them on the decentralised in-app marketplace on a peer-to-peer basis, or rent them out to other users and share in the profits. Extend and freeze character visas, or restore their lives Take part in Player vs Player (PVP) contests that give users the opportunity to earn even more LSTAR.     Pay in-game fees and buy consumables Funds are generated to sustain the LetMeSpeak metaverse by extracting fees for transactions on the marketplace and cryptocurrency exchange, visa extensions, character upgrades, and visual customizations, as well as from the primary sales of NFTs. These funds flow into the ecosystem’s Treasury and are used to further the project’s development and ensure its financial health. By obtaining LMS governance tokens, LetMeSpeak users will also be able to participate in making DAO decisions on how these funds are used, as well as help guide the project’s long-term development and financial strategies. Consequently, LetMeSpeak’s users become more vested in the project, as they actually become active members of a language learning community, who can influence the future of the project, interact with other participants, and earn money as they learn. LetMeSpeak will appeal to people who are serious about learning English but have had little luck with traditional platforms where you study in isolation.           The post Decentralized Web3 App Motivates English Language Learners with Crypto appeared first on Live Bitcoin News.
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Bitcoin price fell from $28K to $26.5K after the US CFTC sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating U.S. crypto trading and derivatives regulations. The crypto market considers this move as a continued regulatory crackdown against crypto. With the crypto market already facing liquidity issues, action against Binance will further worsen the liquidity problem as it’s the world’s largest crypto exchange. According to data, Bitcoin trading on Binance accounts for over 80% after the collapse of FTX and Operation Choke Point 2.0. Bitcoin Miner to Exchange Flow. Source: CryptoQuant Miners have started selling their Bitcoin holdings. Bitcoin Miner to Exchange Flow metric indicates miners have transferred almost 1700 BTC to crypto exchanges on Tuesday. It increases selling pressure on Bitcoin from miners. This is the second-largest selloff by miners YTD after over 3K BTC selloff on January 19. Moreover, Bitcoin Miner Reserve metric shows miners’ BTC holdings also decreased. It confirms miners have started selling their Bitcoin holdings and it will trigger Bitcoin price downfall. It is important to monitor the situation daily. Bitcoin Miner to Exchange Flow for Binance Pool data reveals that 1646 BTC transferred from the Binance mining pool to Binance exchange. Bitcoin Miner to Exchange Flow for Binance Pool. Source: CryptoQuant Bitcoin Price Fall To $25,000 Likely Bitcoin price is currently trading at $26,951. The 24-hour low and high are $26,606 and $27,304, respectively. Thus, the BTC price is down nearly 3% in the past 24 hours. Trader sentiment remains relatively neutral, with Binance being sued and other recent uncertainties not affecting their expectations. Bitcoin Price in Daily Timeframe. Source: Rekt Capital As per popular analyst Rekt Capital, BTC close below $27,000 in the daily timeframe would be enough to trigger the breakdown process. Bitcoin is currently holding above the $26.5K level. However, uncertainties and monthly close risk Bitcoin price to reclaim the 200-weekly moving average (WMA) Also Read: After CFTC, SEC Could Sue Binance Over Securities Offerings The post Miners Dumping Bitcoin To Crypto Exchanges, BTC Price Reversal Below $25K Likely appeared first on CoinGape.
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Ticketmaster, the global provider of event ticketing services, has launched “token-gated sales,” allowing fans access to concert tickets using non-fungible token (NFT) technology. The first to use the service is the metal band Avenged Sevenfold (A7X), whose “Deathbats Club” NFT collection gave owners early access to the group’s shows in Los Angeles and New York City. Following the ticket sales, Ticketmaster announced that it had built and launched a token-gated service for the upcoming A7X shows. Ticketmaster’s New Token-Gated Sales Service Allows for NFT Access to Concert Tickets On March 27, Ticketmaster revealed it has created a new NFT-gated ticketing service, and the metal act Avenged Sevenfold (A7X) is the first band to trial the service. “Building on its NFT capabilities, Ticketmaster has launched the ability for artists to offer token-gated ticket sales – meaning that a sale can only be unlocked or accessed with a specific NFT,” the company said in a press statement. A7X previously sold an NFT collection called “Deathbats Club,” and the NFTs gave owners access to purchasing tickets to shows in Los Angeles and New York before the general public. A7X and the team Bitflips worked with Ticketmaster on the functionality and “Ticketmaster built and launched the token-gated service for A7X to provide their fan community with first access to tickets for upcoming shows.” Ticketmaster’s EVP of Global Music, David Marcus, explained that the new service “allows artists to get special access and rewards to specific fans they want to super-serve.” “Artists like Avenged Sevenfold are using Web3 and NFTs to build deeper relationships with their fans, and we’re proud to help foster that connection through live events,” the Ticketmaster executive added. Ticketmaster has revealed intentions to dabble with NFT technology for quite some time. In August, the event ticketing company disclosed that it was working with the Flow blockchain. The company explained on Monday that the token-gated sale service is one of several “tech solutions that artists can use to get their tickets to their fans.” The company explained that the firm’s token-gated sales are Ethereum compatible and work with Web3 wallets like Metamask and Coinbase. What are your thoughts on Ticketmaster’s new NFT-gated ticketing service? Do you think this will revolutionize the way we access and purchase event tickets in the future? Share your opinions in the comments section below.
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Crypto News: The global digital asset market printed red indexes on Tuesday as Commodity Futures Trading Commission (CFTC) alleged Binance, the world’s largest crypto exchange for violating trading rules. The fear among the investors has triggered a massive outflow from Binance over the past day. According to Nansen, the Blockchain data tracker around $852 million of net outflow has been registered over the past 24 hours. However, Binance witnessed $3 billion of net outflow on December 13, 2022. The post Just-In: Binance Outflows Near $1 Billion Following CFTC Allegations; Report appeared first on CoinGape.
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<p class="MsoNormal">By David Kindley, Market Strategist at <a href="https://www.orbex.com/" target="_blank" rel="follow">Orbex</a> </p><p class="MsoNormal">Fears of a global banking crisis are making headlines these days, after the collapse of three US banks and Credit Suisse’s takeover by UBS. The level of economic uncertainty is now as high as it has been since the depths of the pandemic, with many fearing a repeat of the 2008 Global Financial Crisis – which incidentally was also brought about by the collapse of overleveraged financial services firms and banking companies. </p><p class="MsoNormal">But before we explore whether these fears are justified, we need to consider the events that led us here.</p><p>A historic inflation surge</p><p class="MsoNormal">When Covid-19 hit and global lockdowns came into effect, Central Banks started printing money, lowering key interest rates, and issuing stimulus checks to help keep the economy afloat. In this ultra-loose cheap money environment, digitalization and innovation took center stage with retail investors, hedge fund managers, tech companies, and even banks taking on cheap loans and overleveraged positions to help boost their profit margins. </p><p class="MsoNormal">As the economies reopened and as a result of all the disruptions in supply chains and the ongoing conflict in Russia-Ukraine, prices for basic goods and services skyrocketed. </p><p class="MsoNormal">The ultra-loose monetary policy of 2020-2021 drove inflation to a 40-year high of 9% in the US, ultimately forcing the Federal Reserve to rush into its fastest hiking cycle in modern history and setting off a process of “deleveraging” the economy. </p><p>The price of risk</p><p class="MsoNormal">As Warren Buffett once said: “Only when the tide goes out do you learn who has been swimming naked.” Unsurprisingly, the first companies that defaulted on their loans or were forced to file for bankruptcy because they did not have enough capital on hand to cover customer withdrawals were investment companies and crypto exchanges that had re-invested their client funds and could not liquidate their positions as stock, crypto, and long-maturity bond prices plummeted. </p><p class="MsoNormal">When the Silicon Valley Bank collapsed on March 10 however, the world was alarmed, Signature Bank soon followed leaving crypto companies unbanked, and by the end of the same month, Credit Suisse was taken over by UBS. </p><p class="MsoNormal">Meanwhile, SVB-buyer First Republic and Germany's largest lender Deutsche Bank came under immense sell pressure and their stocks slumped amid fears over the banking sector's resilience. We also saw some bank runs in medium-sized banks with depositors trying to get their money in cash or transfer their money to bigger banks. But why exactly did this all happen?</p><p>A balance sheet recession</p><p class="MsoNormal">Much like tech and investment companies, banks invested a large proportion of their deposits in held-to-maturity securities or bonds. This led to their collapse when investors sought to withdraw their money at the same time. Combined with the drop in stock prices, analysts fear that this may lead to a “balance sheet recession.”</p><p class="MsoNormal">In a balance sheet recession, sectors of the economy stuck with bad assets from a collapsed bubble are forced to sell, pay down, or otherwise dispose of those assets, in order to avoid bankruptcy. This in turn brings the net new borrowing grind to a halt. Given the latest banking crisis, there’s a good chance we will experience a similar deleveraging state. </p><p>How bad is it?</p><p class="MsoNormal">Recoveries from balance sheet recessions primarily involve debt paydown and are usually painstakingly slow. Back in 2008, the world underwent a global financial crisis after cheap credit and lax lending standards fueled a housing bubble. When the bubble burst, major investment banks were left holding trillions of dollars of worthless investments in subprime mortgages. The bankruptcy of financial services firm Lehman Brothers in September 2008 was the climax of this housing crisis.</p><p class="MsoNormal">While the economic conditions that led to the 2008 global crisis at first glance look very similar to what we are experiencing today, a repeat of the 2008 crash is not very likely. For one, today we have more regulation and oversight in place resulting in much less risk in the banking system than 15 years ago. </p><p class="MsoNormal">There are also investor compensation funds in place to guarantee all deposits up to 100K in the EU and up to 250K in the United States. In the case of the SVB collapse, the Federal Deposit Insurance Corporation (FDIC) stepped in on March 13th, 2023, to guarantee that all depositors of the institution, regardless of account size, would be made whole. </p><p>The Fed remains hawkish</p><p class="MsoNormal">On Wednesday, March 22nd, 2023, the US Federal Reserve raised interest rates by 0.25%, reiterating the need for tighter credit conditions for households and businesses in order to bring inflation under control. </p><p class="MsoNormal">Not only did Fed chair Jerome Powell firmly dismiss market bets for a rate cut in 2023, but he also hinted at another 0.25% increase within Q2. At the same time, Capital Economics pointed out that deposits across all the banks have fallen by $663 billion in the past year as customers search for higher yield. </p><p>A fragile recovery</p><p class="MsoNormal">As smaller banks collapse, major banks are bound to become even more conservative in their lending.What it all comes down to is that less lending will lead to less spending and, by extension, less economic growth. Even if market volatility subsides in the coming weeks and months, less credit flowing into the economy means lower growth. </p><p class="MsoNormal">In fact, US and EU growth is projected to remain at below-trend rates in 2023 and 2024. At the same time, inflation is projected to trend lower in the next two years and if the Russia-Ukraine conflict ends, energy and food prices will eventually drop. When that happens, the Fed and other Central Banks are bound to start quantitative easing and we will see rates drop and lending ease, which will in turn mark the end of the current economic contraction cycle.</p><p class="MsoNormal">About the Author: </p><p class="MsoNormal">David Kindley, Market Strategist at <a href="https://www.orbex.com/" target="_blank" rel="follow">Orbex</a> </p><p class="MsoNormal">Market Strategist at <a href="https://www.orbex.com/" target="_blank" rel="follow">Orbex</a> David Kindley is a renowned fundamental analyst with over 10 years of trading experience in the financial markets. With a keen eye for macroeconomics and a special focus on trading psychology, David is passionate about helping everyday investors make informed trading decisions through his thorough research and analysis. </p> This article was written by Finance Magnates Staff at www.financemagnates.com.
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<p class="MsoNormal">SimCorp, a provider of investment management solutions, has announced a partnership with FlexTrade Systems, a major player in high-performance multi-asset trade execution management systems (<a href="https://www.financemagnates.com/tag/ems/" target="_blank" rel="follow">EMS</a>). The collaboration aims to extend SimCorp's Order Management System (<a href="https://www.financemagnates.com/tag/oms/" target="_blank" rel="follow">OMS</a>) capabilities by integrating FlexTrade's cross-asset EMS functionality from its FlexTRADER EMS platform.</p><p>FlexTrades Unites with SimCorp</p><p class="MsoNormal">This collaboration caters to the increasing need for smooth integration and efficient workflows between OMS and EMS solutions, enhancing trading activities and fulfilling best execution requirements. As a component of the partnership, FlexTrade will become a member of SimCorp's Open Platform program, which aims to provide clients with seamless access to innovative fintech solutions throughout the investment value chain.</p><p class="MsoNormal">A key aspect of the agreement involves enhancing connectivity between FlexTrade's multi-asset FlexTRADER EMS and SimCorp's Order Manager OMS. This integration will provide numerous efficiencies, such as a smoother onboarding process and reduced time to market for joint clients deploying FlexTRADER EMS with SimCorp Dimension.</p><p class="MsoNormal">"Accessing liquidity is key for traders, not least in the recent volatile markets. By expanding our native interoperability with EMS providers to include FlexTrade, we formalize a long-running collaboration to provide a tested and maintained integration," Zoe Sheehan, the Vice President of Investments at SimCorp, said.</p><p class="MsoNormal">She added that this partnership offers SimCorp clients another great tool to complement their platform and emphasizes the openness and strength of the SimCorp ecosystem.</p><p class="MsoNormal">Clients of SimCorp and FlexTrade will enjoy harmonized future development plans and the opportunity to seek new functionalities from FlexTrade's industry specialists. This collaboration ensures a cohesive and agile user experience for OMS and EMS solutions while trading across a range of asset classes such as equities, FX, options, fixed-income, and futures.</p><p class="MsoNormal">Andy Mahoney, the Managing Director of EMEA at FlexTrade Systems, expressed excitement about strengthening their relationship with SimCorp and joining the Open Platform initiative. </p><p class="MsoNormal">"We are excited to collaborate to deliver a seamless, cross-asset technology interaction between EMS and OMS solutions, which will help our mutual clients optimize their trading activities," Mahoney added.</p><p class="MsoNormal">According to SimpCorp, the company serves 40% of the world's top 100 financial firms through its platform and ecosystem, from 25 offices worldwide and a workforce of more than 2,200 employees.</p><p class="MsoNormal">Anders Kirkeby, Head of Open Innovation at SimCorp, remarked that by incorporating SimCorp's portfolio and order management solutions with a select group of top-tier trade execution management systems, clients benefit from sturdy and expandable order execution and automation features. This integration allows traders to achieve excellent execution, even on the most demanding trading days.</p><p>Rajiv Shah Joins FlexTrade</p><p class="MsoNormal">A week ago, <a href="https://www.financemagnates.com/executives/moves/flextrade-systems-onboards-rajiv-shah-as-emea-sales-head/" target="_blank" rel="follow">FlexTrade Systems announced the appointment of Rajiv Shah</a> as the Head of Sales in EMEA for the company's flagship sell-side OEMS, FlexOMS. The position has been specifically designed to incorporate Shah into the organization. Shah will contribute to the company's business strategy and expansion efforts as the official statement outlined.</p><p class="MsoNormal">"We are already seeing great growth and interest and are investing heavily in this market," said the Principal and Associate Founder of FlexTrade, Rajiv Kedia.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Rajiv Shah joins FlexTrade's London office as Head of Sales for Sell-Side Solutions in EMEA. The move is designed to drive growth and expand the market adoption of FlexTrade's Sell-Side trading solution, FlexOMS.Full story - <a href="https://t.co/ib2THpBCZj">https://t.co/ib2THpBCZj</a> <a href="https://t.co/iUlI9pAUYa">pic.twitter.com/iUlI9pAUYa</a></p>— FlexTrade Systems (@FlexTrade) <a href="https://twitter.com/FlexTrade/status/1637833475935072256?ref_src=twsrc%5Etfw">March 20, 2023</a></blockquote><p class="MsoNormal">"A key component of executing our growth strategy for the solution and business in EMEA is ensuring we have the best people in place. With his long-proven track record, there is no one better than Rajiv Shah to help us move forward," Kedia added.</p><p class="MsoNormal">The company also announced a few months ago <a href="https://www.financemagnates.com/institutional-forex/apg-picks-flextrade-for-multi-asset-execution-management-capabilities/" target="_blank" rel="follow">a partnership with APG Asset Management</a>, a Netherland-based company that has more than EUR 586 billion in assets under management. APG has chosen FlexTRADER EMS to enhance its multi-asset execution management capabilities. The asset management company utilizies FlexTRADER EMS to develop sophisticated, customizable workflows and equip trading teams in the Netherlands, Hong Kong, and the US with a uniform set of data, tools, and interfaces to boost trading effectiveness.</p><p>New Developments in the OMS World</p><p class="MsoNormal">Recently, Finance Magnates has reported several times on new collaborations and updates in the OMS industry. <a href="https://www.financemagnates.com/institutional-forex/cqg-and-broadridge-partner-to-offer-a-trading-technology-suite-for-institutional-customers/" target="_blank" rel="follow">Two weeks ago</a>, CQG, a trading, market data, and technical analysis resource supplier, revealed a strategic collaboration with Broadridge Financial Solutions, a publicly-traded US fintech firm. The two companies merged their OMS and EMS offerings.</p><p class="MsoNormal">Before that, kACE, a product brand for solutions provided by Fenics Software Limited, <a href="https://www.financemagnates.com/institutional-forex/kaces-new-oms-to-support-foreign-exchange-options-markets/" target="_blank" rel="follow">announced the start</a> of its newest OMS for the foreign exchange (FX) options market, dubbed kACE OMS.</p><p class="MsoNormal">In the meantime, a private trading operator owned by TP ICAP, Liquidnet, has announced its <a href="https://www.financemagnates.com/institutional-forex/liquidnet-cooperates-with-bondauction-to-integrate-oms/" target="_blank" rel="follow">cooperation with BondAuction</a> to provide access to BondAuction's offering from their OMS.</p> This article was written by Damian Chmiel at www.financemagnates.com.
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<p>Hours after the <a href="https://www.financemagnates.com/cryptocurrency/cftc-sues-binance-for-illegal-derivatives-exchange-numerous-violations/" target="_blank" rel="follow">Commodity Futures Trading Commission’s lawsuit</a>, Binance CEO Changpeng Zhao publicly rejected the allegations, calling them “unexpected and disappointing” with “an incomplete recitation of facts.” </p><p>In the brief response through an official blog post, Zhao refuted all the major allegations and will be “able to give full responses in due time.”</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">My Response to the CFTC Complaint | Binance Blog <a href="https://t.co/TadyotM7HN">https://t.co/TadyotM7HN</a></p>— CZ 🔶 Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1640483997288415234?ref_src=twsrc%5Etfw">March 27, 2023</a></blockquote><p>Zhao Rejects CFTC’s Allegations </p><p>“The CFTC filed an unexpected and disappointing civil complaint, despite our working cooperatively with the CFTC for over two years,” he stated. “Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint.” </p><p>Binance, the largest <a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" class="terms__main-term" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa">cryptocurrency exchange</a> in terms of trading volume, faced many regulatory setbacks in the past, including <a href="https://www.financemagnates.com/cryptocurrency/news/the-fcas-binance-warning-what-does-this-meaning-for-uk-crypto-regulation/" target="_blank" rel="follow">warnings </a>and <a href="https://www.financemagnates.com/cryptocurrency/first-binance-and-now-coinbase-have-both-been-fined-33m-in-netherlands/" target="_blank" rel="follow">enforcement actions</a>. However, the latest lawsuit by the US regulator is a massive blow to its dominance. </p><p>The lawsuit on Monday by the CFTC alleged that <a href="https://www.financemagnates.com/tag/binance/" target="_blank" rel="follow">Binance violated</a> “numerous” regulations in the country and that its <a href="https://www.financemagnates.com/terms/c/compliance/" class="terms__secondary-term" id="569f58ee-534c-44f0-a7cd-f55b0f9a2b2a">compliance</a> is a “sham.” The exchange was accused of instructing “commercially valuable US-based VIP customers.” ways of avoiding compliance controls, insider trading, and even market manipulation. </p><p>Not Trading for Profits </p><p>Zhao, in his response, highlighted that “Binance.com does not trade for profit or “manipulate” the market under any circumstances.” He clarified that Binance often converts its earnings in crypto to fiat or other crypto assets to cover expenses. </p><p>He further disclosed that he personally has two Binance accounts, one for his Binance Card and the other for his crypto holdings. Moreover, he and other Binance employees follow a “90-day no-day-trading rule” that prohibits them from selling a crypto asset within 90 days of procuring them. </p><p>“This is to prevent any employees from <a href="https://www.financemagnates.com/cryptocurrency/regulation/binances-bnb-token-is-reportedly-facing-probe-by-the-us-sec/" target="_blank" rel="follow">actively trading,</a>” Zhao added. “We also prohibit our employees from trading in Futures. Further, we have strict policies for anyone with access to private information, such as details of listings, Launchpad, etc. They are not allowed to buy or sell those coins.”</p><p>Serious Allegations by the CFTC</p><p>These clarifications came as the CFTC alleged that Binance traded on its own platform with 300 “house accounts” but did not disclose such activities to customers. The exchange has also been blamed for keeping this information “top secret” and refused to provide any trading activity-related details after a subpoena.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">You have to ask yourself why would a single trader need over three hundred trading accounts, to trade on Binance?Because they're wash trading and painting the tape between their accounts.They can make the prices do whatever they want. <a href="https://t.co/YIF8XYSrlh">pic.twitter.com/YIF8XYSrlh</a></p>— Bitfinex’ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) <a href="https://twitter.com/Bitfinexed/status/1640394811747319811?ref_src=twsrc%5Etfw">March 27, 2023</a></blockquote><p>“Binance is committed to transparency and cooperation with regulators and law enforcement (LE) — in the US and globally,” Zhao stated, adding that his exchange handled over 55,000 requests from law enforcement. He even praised the compliance systems of Binance as being top-notch. </p><p>Meanwhile, Binance published a response letter recently sent to US Senators Warren, Van Hollen, and Marshall. </p><p>“Binance takes the issue of compliance very seriously, and it regularly engages with US law enforcement,” the letter stated. “The public blockchain record (on-chain analytics) of crypto exchanges means that the platform has greater transparency as compared to traditional financial institutions, making it easier to track and trace the flow of crypto assets.” </p> This article was written by Arnab Shome at www.financemagnates.com.
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<p class="MsoNormal">Horizon Software, an algorithmic and electronic trading technology solution provider for global capital markets, has announced its certification on the Montreal Exchange (MX). </p><p>Horizon Software Certified by the Montreal Exchange</p><p class="MsoNormal">According to Tuesday's press release sent to Finance Magnates, the certification allows Horizon's clients to trade exchange-traded derivatives, such as equity, index, currency options, and interest rate derivatives, on the MX platform.</p><p class="MsoNormal">Horizon is now equipped to offer <a href="https://www.financemagnates.com/terms/c/connectivity/" class="terms__main-term" id="67c58fee-a85e-483c-8fac-648b94f10aab">connectivity</a> to any financial institutions interested in trading on the MX, providing support for workflows like committed orders, orders for strategies trading via implied, basis trade on close instruments, pre-arranged trade workflows, and stop orders.</p><p class="MsoNormal">Robert Tasca, Managing Director of Derivatives Products and Services at MX, states that the Montreal Exchange is delighted to certify Horizon Software as MX's new independent software vendor (ISV).</p><p class="MsoNormal">"MX is constantly exploring fresh opportunities to expand our global client base and execute our long-term, sustainable growth strategy," Tasca added.</p><p class="MsoNormal">For over two decades, Horizon has been strengthening the position of capital market participants by incorporating algorithmic technology into its electronic trading platform and enabling trading opportunities via direct access to over 80 exchanges globally.</p><p class="MsoNormal">"Achieving this certification marks a significant milestone in our expansion strategy within the Canadian market and our OMS suite of offerings. This certification showcases Horizon's dedication to providing clients with innovative trading solutions and state-of-the-art technology," Isabelle Dominjon, the Business Development Manager at Horizon Software, commented.</p><p>New Markets, Partnerships and Promotions for Horizon Software</p><p class="MsoNormal">Two weeks ago, <a href="https://www.financemagnates.com/forex/horizon-software-eyes-asean-dominance-with-new-sgx-connectivity/" target="_blank" rel="follow">Horizon Software announced</a> its new connectivity to the Singapore Exchange (SGX Group) within six months of its <a href="https://www.financemagnates.com/institutional-forex/horizon-software-bolsters-apac-presence-with-new-singapore-office/" target="_blank" rel="follow">official launch in Singapore</a>. The direct link with the SGX Group enables Horizon customers to engage with and transact across various financial markets and create a market for exchange-traded funds (ETFs). Moreover, they will be able to execute hedging strategies more rapidly and effectively.</p><p class="MsoNormal">In January, the algorithmic and electronic trading technology solution provider presented cross-asset electronic <a href="https://www.financemagnates.com/institutional-forex/horizon-updates-its-extend-platform-focuses-on-trading-as-a-service-offering/" target="_blank" rel="follow">platform Horizon Extend</a>. Horizon Extend empowers customers to tailor pricing models and hedging tools, streamline processes, and foster a more adaptable and transparent trading ecosystem. The platform also facilitates the creation of sophisticated routing regulations for direct market access (DMA) and allows clients to oversee trading risk and <a href="https://www.financemagnates.com/terms/c/compliance/" class="terms__secondary-term" id="569f58ee-534c-44f0-a7cd-f55b0f9a2b2a">compliance</a>.</p><p class="MsoNormal">At the end of last year, the company <a href="https://www.financemagnates.com/institutional-forex/horizon-software-supports-wses-global-connect-equity-market/" target="_blank" rel="follow">announced </a>that the brokerage arm of Santander Bank Polska became the first Introducing Market Makers on Horizon's platform for the 'Global Connect' equity market organized by the Warsaw Stock Exchange (WSE). During the same period, Horizon Software <a href="https://www.financemagnates.com/executives/horizon-software-promotes-francois-xavier-detourniere-to-product-head/" target="_blank" rel="follow">promoted Francois-Xavier Detourniere</a> to the position of Head of Product Management.</p><p class="MsoNormal">FMA flags CFDs broker and AI in portfolio management, <a href="https://www.financemagnates.com/forex/news-nuggets-28-march-fma-flags-cfds-broker-ai-in-portfolio-management/" target="_blank" rel="follow">read today's news nuggets</a>.</p> This article was written by Damian Chmiel at www.financemagnates.com.
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The Federal Deposit Insurance Corporation (FDIC) announced the acquisition of Silicon Valley Bank (SVB) by First Citizen Bank & Trust Company, with a $20 billion bankruptcy cost. Silicon Valley Bank (SVB) and its acquisition by First Citizen The government-owned Federal Deposit Insurance Corporation (FDIC) announced the acquisition of Silicon Valley Bank (SVB): Today, we entered into an agreement with First-Citizens Bank & Trust Company to purchase and assume all deposits and loans of Silicon Valley Bridge Bank, N.A.https://t.co/vjDsnQxhrr pic.twitter.com/MI5lXN5y6r — FDIC (@FDICgov) March 27, 2023 In essence, First Citizens Bank & Trust Company, headquartered in Raleigh, North Carolina, acquired all the deposits and loans of the troubled SVB bank, as well as its 17 branches it owned in the United States. Specifically, SVB had $167 billion in total assets and about $119 billion in total deposits. Today’s transaction involved the purchase of about $72 billion of SVB’s assets at a discount of $16.5 billion. Whereas, about $90 billion in securities and other assets will remain in receivership to be disposed of by the FDIC. The 17 former branches of Silicon Valley Bridge Bank, National Association, are opening as First-Citizens Bank & Trust Company on Monday 27 March 2023. The announcement specifies that SVB customers should continue to use their current branch until they receive notice from First-Citizens that system conversions have been completed to allow full banking service at all other branches. In spite of everything, there is no mention of cryptocurrencies in this announcement, as opposed to the announcement of the Signature Bank acquisition. Silicon Valley Bank (SVB) and the $20 billion bankruptcy cost In its announcement, the FDIC goes on to estimate the cost of the bank’s failure as follows: “The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership.” In this regard, there are those who commented on this figure, adding that this would be the most expensive bank failure in the US.  FDIC estimates that Silicon Valley Bank's failure will cost the deposit insurance fund $20B That'd make it the costliest bank failure in US history, beating IndyMac's '08 failure (which cost $12.4B) and eating 14% of the insurance fund, which comes from an assessment on banks. pic.twitter.com/kRwRuSIyL4 — Joey Politano (@JosephPolitano) March 27, 2023 And indeed, compared to Signature Bank’s estimated DIF cost of about $2.5 billion, SVB’s losses are significantly higher. First Citizens’ shares rise 50% The news of the bailout by First Citizen Bank & Trust Company made its FCNCA shares jump 50%.  Indeed, FCNCA shares rose on 27 March from $582.55 to an impressive $852.69 and have remained at that level. At the time of writing, First Citizens BancShares Inc shares are worth $895.61. The CEO of First Citizen, Frank B. Holding, commented on Twitter: “We are proud that the FDIC has selected First Citizens to take on the important relationships with Silicon Valley Bank’s depositors and customers, and in turn, strengthen the banking system and the U.S. economy." – Frank B. Holding, Jr. Read more: https://t.co/WK00OrcQY9 pic.twitter.com/qUxZQRo8pt — First Citizens Bank (@firstcitizens) March 27, 2023 Not only that, in his article, Holding describes the bank as follows: “First Citizens has a reputation for financial strength, exceptional customer service and prudent lending that spans 125 years. We have partnered with the FDIC to successfully complete more FDIC-assisted transactions since 2009 than any other bank, and we appreciate the confidence the FDIC has placed in us once again. We look forward to building relationships with our new customers and positioning our company for continued success as we affirm our commitment to support the integrity of our nation’s banking system.” Silicon Valley Bank (SVB) and the unresolved USDC case Speaking of cryptocurrencies, the present news finds no support for Circle’s stablecoin, USD Coin (USDC), which continues to lose market capitalization. In fact, since the collapse of SVB, USDC has been the only crypto to suffer an outflow on supply estimated at 3.9 billion. Not only that, USDC’s holders seem to have decided to abandon the idea that USDC was safe, despite the fact that Circle’s CEO had provided reassurance about the coin’s solvency. The thing is, Circle had declared the day after the bank’s fall that 3.3 billion of USDC reserves remained anchored in Silicon Valley Bank. That day marked the beginning of the decline in USDC’s market capitalization as well as its de-peg to the US dollar. Looking at the graph, as of 10 March 2023, USDC’s market cap of $43.55 billion began to decline day by day, reaching $33.42 billion today. USDC’s request to the Fed for help Last week, Circle asked the US Federal Reserve for help, asking them to support the USDC stablecoin with US dollars held at the Fed. A request that would bring back confidence about the stablecoin’s greater stability and security for its users who have been preferring other stablecoins, such as Tether (USDT), for over two weeks now. Basically, at the conference held at Warwick Business School, Circle vice president Tarleton Watkins discussed the potential long-term solution for retail stablecoins.  Watkins would suggest that a wholesale Central Bank Digital Currency (CBDC) at the Federal Reserve could be used as a back-up tool for stablecoins. This would be a more secure and stable option for users. Not only that, Watkins also advised stablecoin issuers to hold dollar reserves at the Fed, rather than relying on various financial partners.  
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