CBDCs and asset tokenisation kick off digital regulation in 2020
13 February, 2020
Central bank digital currency (CBDC) and tokenisation are dominating regulatory discussions. A wholesale CBDC is likely to come into being in 2020. Widespread asset tokenisation would give rise to numerous regulatory issues, making advanced jurisdictions such as Switzerland particularly attractive.
It is customary in articles like this to trumpet that “2020 will be the year when digital assets explode”. We are all eager to see blockchain achieve wider adoption, but I believe we need to adopt a slightly longer time horizon. It will most likely take three to five years to fully establish the infrastructural bedrock of this industry. But bearing in mind that the conventional financial institutions we now take for granted took hundreds of years to evolve, a few years is not long to wait.
To achieve the goal of serving as a decentralised platform for all sorts of applications, Ethereum needs to scale. It envisions achieving this by moving from a proof-of-work to proof-of-stake consensus algorithm. In this article, we look at the challenges that arise through this transition and at the yields investors may expect by staking.
In this publication we underscore the importance and the current state of digital assets against the backdrop of looming uncertainty in traditional asset classes. In our market outlook, we take the risk to combine a macro view with trends in the digital asset industry.
Swiss bank SEBA now accepts clients from 9 new jurisdictions
12 December, 2019
SEBA Bank, an integrated bank for digital and traditional assets and licensed by the Swiss supervisory authority FINMA, is now onboarding clients from 10 jurisdictions through a user-friendly digital onboarding process.
The Swiss Federal Council has adopted the dispatch to further improve the DLT/blockchain regulatory framework. Switzerland is consolidating its leading position, reinforcing legal certainty, removing barriers to entry and reducing the risk of abuse.
In this month’s Digital Investor, we start to examine a topic that is set to accompany us in the coming years: what are the price determinants of crypto assets? If you are a crypto investor or plan to become one, this publication is here to help you to trade crypto assets.
SEBA launches its investment solutions with new crypto index
26 November, 2019
SEBA Bank starts its investment business and launches the SEBA Crypto Asset Select Index (SEBAX) for crypto currencies. SEBAX addresses the predominant problem of traditional market value-weighted indices, making index investments interesting for the digital investment market as well.
In this edition of “The Bridge,” we will introduce you to the consensus mechanism, a notion at the heart of all blockchain-based systems. It is the mechanism that creates trust in the system by acting as a truth seeker. We will use the Byzantine General’s problem to explain the two main consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).
International regulators tackle the issues of stable coins and digital money
14 November, 2019
International regulators have defined strict authorization criteria for Global Stable Coins (GSC) such as Libra. In the short term, no such coins will go live. They have also made it clear that Central Bank Digital Currencies (CBDCs) are inevitable. China may be the first state to issue one. Overall, this intense regulatory focus is enhancing trust in digital and crypto finance.
Are crypto-assets suitable for institutional investors?
07 November, 2019
For years, crypto-asset has been a confidential asset class for non-institutional investors. However, we observe growing “institutionalisation”. In this issue of The Digital Investor, we give a broad overview of the state of the institutionalisation process to assess whether it has reached a level of development that is advanced enough to attract institutional investors.
Blockchain 101: A simple analogy with a famous board game. Whether you play chess or not, this publication is for you. We invite you to discover the crypto world through the game of chess. Don’t be afraid. No prior knowledge in either blockchain or chess is required.
The Swiss Financial Market Supervisory Authority (FINMA) published guidelines on stable coins (including Libra), thereby increasing regulatory certainty around these type of projects. The Swiss National Bank (SNB) assessed stable coins from a macroeconomic perspective, while the G7 handed off work on regulatory issues to the Financial Stability Forum (FSB)
What makes crypto assets an attractive addition to an investor’s portfolio? Our analysis shows that a small exposure to crypto assets can enhance portfolio performance for the given level of risk as the low correlation of crypto assets with traditional asset classes allows them to act as an effective portfolio diversifier.