Fidelity Is All In, So Are Steve Wozniak And Mastercard

Volume 37

Blockchains have the potential to store over 10% of our global GDP, ~ $8 Trillion in value. At Proteum, we are dedicated to understanding tomorrow's "Internet of Value". This newsletter is our weekly roundup of some of the significant blockchain news this week. News we think is worth sharing for you to map your blockchain strategies, be aware of regulatory announcements and get an overview of the rapidly changing blockchain landscape.

Number of the Week

The percentage of CIOs in a recent Gartner survey who indicated that any kind of blockchain adoption had occurred in their organizations.

In all fairness, 78% of the CIOs surveyed said that enterprises lack a broad skills and understanding of how to adapt themselves to thrive in a blockchain world. 

Bitcoin was only the beginning for blockchain! New technologies are rapidly emerging in the crypto space and they will bring with them new legal challenges. 

Join Proteum and Morgan Lewis as we discuss emerging technological and legal issues. Rakesh Ramde, Managing Director, Proteum, will talk about the legal considerations for placing business assets on blockchain

Date: October 16, 0900 - 1030 PT. Click Here to Join the Webinar

The Main Story | Fidelity Starts Crypto Unit To Serve Wall Street

Fidelity Investments is jumping into the emerging cryptocurrency arena with a new business to manage digital assets for hedge funds, family offices and trading firms. The business, dubbed Fidelity Digital Assets, is a bet that Wall Street’s nascent appetite for trading and safeguarding digital currencies will grow. 

The mutual fund giant will offer security and storage services, trade execution and customer service for digital assets, Fidelity said Monday in a statement. The firm is participating today in the Bloomberg Institutional Crypto conference in New York. “Our goal is to make digitally native assets, such as Bitcoin, more accessible to investors." 

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Venture Capital | Steve Wozniak's Blockchain Fund

Apple co-founder Steve Wozniak has been announced as a co-founder of recently launched blockchain-focused venture capital fund EQUI Global. The new venture capital fund aims to change the concept of the traditional industry by enabling non-institutional investments, as well as allowing investors to trade on external crypto exchanges via EquiTokens. 

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China | A "Blockchain Pilot" Zone

China’s Hainan Province became the host of the country’s “first” officially licensed “‘blockchain pilot zone”. With its base at the Hainan Resort Software Community (RSC), a dedicated tech space and software park, the pilot zone incorporates several partnerships, chief among which are a blockchain research institute and innovation center. 

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Regulatory Winds | All ICOs are securities

Former chairman of the U.S. Commodity Futures Trading Commission (CFTC), Gary Gensler said that most tokens sold through Initial Coin Offerings (ICOs) should be classified as securities. Gensler’s words echo a statement from SEC Senior Advisor for Digital Assets and Innovation, Valerie A. Szczepanik, who said that “if you want [the crypto] industry to flourish, protection of investors should be at the forefront.”

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GDPR | Blockchain and Personal Data

On its face, blockchain technology seems a great fit for the privacy of personal data. Whether public or private, a blockchain is made up of many, many, different nodes, Does each node need to be GDPR compliant? If so, who is responsible for ensuring each node is GDPR-compliant? In the event of a personal data breach, what is the appropriate jurisdiction and applicable law? Just to make things more complicated, how will EU regulators view (and answer) such issues? 

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Patents | Mastercard's MultiCurrency Blockchain

Mastercard has been awarded a patent for a method to partition a blockchain, making it capable of storing multiple transaction types and formats. This means that any entity that wants to use multiple types of blockchains — whether ones that support different cryptocurrencies, or ones with varying degrees of permissioned or open access — is forced to operate many different blockchains at once. 

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Review| NIST Blockchain Report

If you have been dwelling under a rock, the U.S. National Institute of Standards and Technology has news for you - they just released a report on blockchain. The report offers an overview of how blockchain works and seeks to emphasize the limitations and misconceptions around the technology. The overview covers the history of blockchain, the difference between permissioned and permissionless models, the components of blockchain, and various consensus models.

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The Final Word | Nassim Nicholas Taleb and Naval Ravikant at the BlockCon 2018

This talk brings together two iconoclasts. Paraphrasing 2 ideas (of many) here: 

Taleb: Government issued currencies have never been "Lindy", throughout history, governments have always debased their currencies
Naval: In crypto, Bitcoin is the Lindy currency”. The longer it's survived, the longer it will survive

Taleb: One of the big events in history was separating church from state
Naval: Crypto is trying to separate money from the state

About Proteum
Proteum is a global blockchain advisory firm that works with public, private and start-up companies to help them transition into the world of blockchains and decentralized applications. We help companies strategically build their capabilities so that they can own and control their future. Let's put blockchains to work for your business. |  | Twitter: @proteumio | Telegram