A group of America’s biggest banks are launching tokenized deposits in order to stave off the threat that stablecoins will poach depositors. Bank of America, Citigroup and JPMorgan Chase are among the 16 major banks that have joined forces with The Clearing House to build a tokenized deposit network to enable 24/7 blockchain-based settlement of bank deposits. Banks have been running scared that depositors will turn to stablecoins like Circle’s USDC and Tether’s USDT instead of bank accounts to save their money, particularly if they are able to earn interest (or yield) on their stablecoin savings. Banks have been working to try and ban such yield offerings. The new initiative…
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SEC Chairman Gary Gensler in an official government photo from his service as Chairman of the Commodity Futures Trading Commission. (Photo: CFTC)What Gensler role in Long Term Capital Debacle Tells us about his war on crypto
25th anniversary occasions a look at SEC chair’s small part
This is the 25th anniversary of the September 1998 collapse of Long-Term Capital Management. That was one of the most stunning events in Wall Street history, as the firm allowed its leverage to grow to more than 100 to 1. But it was shocking beyond the sudden evaporation of $4 billion in value—that was a lot of money 25 years ago— but also because the firm had been put together specifically on the basis of its supposed genius for understanding and managing risk. The firm was dominated not by great traders but by intellectual supermen, including Robert Merton and Myron Scholes. Merton and Scholes had won the Nobel prize just…
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Markets Report: Bitcoin bulls lie in wait as ‘New Era’ for adoption begins
This week has been a landmark for institutional Bitcoin moves, say analysts, but price has yet to reflect their excitement
“Morgan Stanley’s announcement to offer bitcoin to their clients ($5T) in April ushers in a new era,” Eric Weiss, CEO of Bitcoin Investment Group, concluded. “A tidal wave of money is about to flow into bitcoin. Every major bank will follow. Nothing will ever be the same.”
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On heels of Morgan Stanley boost, BTC trashed by Bank of America, Investopedia
BoA analysts say Bitcoin is ‘impractical as a store of wealth,’ while an Investopedia investors survey finds 62% believe it is in a price bubble
According to financial news site The Street, BoA analysts on March 17 called Bitcoin “impractical as a store of wealth or payments mechanism,” adding, that there is no good reason to invest in Bitcoin “unless you see the price going up.” Beyond that, Investopedia editor-in-chief Caleb Silver said a survey showed the only bubble investors are worried about is Bitcoin.
