NAGA Card is Finally Here!

NAGA CARD News

NAGA Card is Finally Here!


The diverse and unified NAGA platform has received another huge boost with the launch of its long-awaited NAGA Card. 


This latest development comes after NAGA’s dedicated team worked tirelessly to provide its users with all the advantages that come with being a NAGA Cardholder.

The NAGA Card’s Many Advantages

Every NAGA Card account comes with a sleek, user-friendly dashboard which provides cardholders with the perfect place for transferring funds. Account management is made even easier thanks to integration with the MY NAGA member area.

The card is directly linked to the user’s trading account, allowing for fast and easy deposits and withdrawals.

Perhaps most importantly, NAGA Card features robust security measures to make sure that all transactions carried out online are secure — thanks to a simple but effective verification process.

Where Can You Use NAGA CARD?

NAGA Card may be used anywhere MasterCard is accepted — which is, more or less, anywhere that accepts Mastercard credit/debit cards.

The card can also be used to withdraw British Pounds, Euros, and US dollars from ATMs around the world.

It is important to note, however, that although the cards have been released for use, they are currently only available to NAGA subscribers who are in the SEPA region.

Game Changer

The arrival of the NAGA Card is an undeniable game changer for the financial technology industry — allowing users to send and receive money in different currencies using IBAN numbers. Furthermore, the NAGA Card is seamlessly linked directly to its holders’ trading account on the NAGA Trader platform. This results in the most streamlined flow of funds across all NAGA products.

All things considered, the NAGA Card is just one more reason why the NAGA platform is the premier place to call home in the world of financial technologies.

The card itself only costs a few dollars, but charges are tiered depending on the cardholder’s trading level.

  • Iron traders only have to pay a one-time fee of €39.99 to own the NAGA Card.
  • Bronze traders are charged €29.99 once.
  • Silver traders are charged €19.99 once.
  • Gold traders need only pay €9.99 euros.
  • Crystal and Diamond traders need not pay a single cent to get the NAGA Card.

What do you think about the launch of the NAGA Card? Let us know in the comments below!


[Editor’s Note: NAGA is one of Bitcoinist’s premium partners, which are clearly displayed on the homepage.]

Maxim and Pavel Yakimov Discuss Tkeycoin’s Promising Technicals [Interview]

Tkeycoin Interviews

Maxim and Pavel Yakimov Discuss Tkeycoin’s Promising Technicals [Interview]


Bitcoinist recently caught up with Maxim and Pavel Yakimov, the founders of Tkeycoin — a promising cryptocurrency boasting some impressive technicals — to find out what exactly makes their project stand out from the crowd. 


Interview with Maxim and Pavel Yakimov

Tkeycoin’s claim to fame is that its blockchain can handle 50,000 transactions per second. Tell us, how have you achieved this?

To achieve this, we have carried out numerous studies on b2b-networks, different types of consensus as well as we have analyzed shared values of the civil society in general. Having PoS, DPoS, PoW and other algorithms under close analysis, we have concluded that mPoW type fits our needs the best.

We have always wanted to develop a genuinely decentralized and fast system. Thus, we believe that PoS & DPoS algorithms are of not any help for the purpose.  At which point, we have taken already existing algorithms, level out the cons and upgraded the pros to get the perfect blockchain variation ever existed.

Even though the increase of the block size seems to be an obvious solution, we do not use big blocks in Tkeycoin network. Our algorithms work smoothly as a good Swiss watch. Every single detail in our network makes the difference; every single mechanism makes these 50,000 transactions per second just a today’s reality. The solutions we use are based on hundreds of researches and conceptions. Trust us, Tkeycoin network is capable of handling as many operations as needed. It has awesome productivity!

What is the kYprotocol, in layman’s terms?

What is kYprotocol in layman terms? This is a mechanism that processes hundreds of operations and keeps its record in the blockchain system. This is some kind of engine that controls everything in the network, and most of the work processes have a strong dependence on it. In fact, this is what drives Tkeycoin forward and leads it to the top.

What platforms will Tkeycoin be available on, and when can we expect each to be supported?

Tkeycoin will be available on Windows, MacOS, Linux, iOS, Android, and Web. As for the order, we are going to release Windows, Android and web version in the first wave, the others – in one or two months later. The first wave is planned for December 2018 – January 2019. The preliminary date of MacOS and Linux releases is March-April 2019.

What exchanges will Tkeycoin be listed on come January 2019?

The full list of exchanges will be published on our website slightly later. If considering the situation in general, we continue our negotiations with world’s leading platforms and invite for cooperation everyone who wants to see Tkeycoin on their exchange. As for the specificity, we have an agreement with EXMO and HitBTC, and few more dialogues still going on. We will announce more platforms for Tkeycoin listing when we have more detailed arrangements.

Why is Tkeycoin conducting an ICO?

In fact, we have a few reasons for conducting ICO at this stage. Firstly, we want people to know our product. We want them to distinguish it from hundreds of other projects even before it will be listed on an exchange. Secondly, it is vital for Tkeycoin to have a reliable foundation for future growth and scaling on the International market. We want to attract developers already at this stage to create a strong and productive community. We want people to talk about Tkeycoin every day.

Finally, we want to multiply our efforts right after the end of ICO. We are preparing an ambitious marketing campaign for our project and the cryptomarket in general. We want to change the public opinion on the cryptocurrencies and take it to the brand new level. We are planting the germ to grow and water in the future.

If someone was to say to you that ICOs are dead, how would you respond?

It is quite difficult to have any reactions on such statements since it is the way too much subjective. People have mostly created this opinion themselves with the help of poor-quality projects. We can see numerous second-rate products, scam ICOs; thus the market is being destroyed. Look at IBO – there are dozens of good cases and companies. Everything needs some time.

As for the ICO market, we think the current situation will help the market to be regulated. Thanks to the bubble burst, it will be cleared from scam projects and low-quality technologies. SEC and other organizations of such kind are intended to save the market from being discredited. The market shouldn’t suffer from useless and harmful projects.

What will the funds collected during the ICO be used for?

Basically, we need the funds for the future development of the product and its scaling on the global market. This is a fuel that will allow Tkeycoin move faster, lightning-fast if you please. The market grows that rapidly that it is impossible to develop a high-quality product and promote it to the world market without proper investments and a certain amount of money.

Where do you see the cryptocurrency space, specifically, five years from now?

We are at Tkeycoin believe that cryptocurrencies surely can take its essential place in the global economic system. We can expect some government-level cryptos in the nearest future, i.e., crypto USD or crypto JPY. People will have a chance to pay taxes and different government payments in crypto, and it will be regulated at the highest level. Still, we believe that it is just a small example of the usage of cryptocurrencies among hundreds of others.

Moreover, it is also important to note, that the establishment of the market has not even started yet. The stage that we see know is something preliminary, and people will get used to cryptos only in five or seven years from now. It has been proven by the recent technological history few times. Just remember the microwave or air conditioner stories, and you will understand yourself the future tale of cryptocurrencies and blockchain in general.

What is your favorite part about working on Tkeycoin?

Great question, thank you! We love what we do so much, and these are not just words. We love to communicate with our investors, give them a feedback and consult them about our product.

As for the work processes, we really like involving new prosperous people to the sphere. We educate the newcomers, and our team continues to grow thanks to the purposeful and motivated people. We hear the words of gratitude quite often, and this is something that makes us work even more and harder than before.

As for development itself, we love to create something complex and simple at the same time. We want people who have never heard about crypto to download our apps and use it easily at just in seconds without any problem. It would be just great for us to create a clear and accessible product that will improve the lives of millions for years to come.

What do you think about Tkeycoin? Let us know your thoughts in the comments below!

eToro Partnership Sees Binance Coin Exchangeable For Fiat For First Time

Binance Coin (BNB) News

eToro Partnership Sees Binance Coin Exchangeable For Fiat For First Time


Cryptocurrency exchange Binance today saw its in-house token Binance Coin (BNB) become available to buy and sell with fiat currency for the first time.


BNB Leaves The Crypto Realm

In a partnership with UK-based trading platform eToro, the exchange will open up its token, which traders can use to pay fees, to direct exchange against the euro, British pound, US dollar or Japanese yen.

BNB is the thirteenth cryptocurrency asset to launch on eToro, which has cemented its bullish position on the asset class over the past two years.

Commenting on the decision, eToro CEO and co-founder Yoni Assia continued the upbeat sentiment. “Despite sensational headlines about the death of crypto, we continue to believe in the potential for crypto assets, as do our clients who are increasingly looking to diversify their crypto holdings,” he said in an accompanying press release. “In response, we will continue to add the leading crypto assets to our range and we are pleased to add BNB to the platform.”

Zhao: BNB ‘Can Reach Millions’

Until now, only all-cryptocurrency exchanges had offered the token, Binance similarly not supporting fiat currency beyond USD-pegged stablecoin Tether (USDT).

One of the more successful ICO tokens of 2017, BNB has managed to avoid the bear market which saw multiple other assets plummet in value by over 95 percent.

“With this addition, the Binance coin can reach millions more people, many of whom are more accustomed to the traditional financial industry,” Binance CEO Changpeng Zhao continued. “As (a) utility token, we believe in creating long term utility and value.”

eToro had already made the cryptocurrency news this week meanwhile, with managing director Iqbal V. Gandham telling Bitcoinist that cryptocurrency sports signings would “soon” become a major new phenomenon.

The comments follow a raft of partnerships the platform signed with UK premier league football clubs, as part of which sponsorship money will be paid solely in Bitcoin. 

What do you think about eToro launching Binance Coin? Let us know in the comments below! 


Images courtesy of Shutterstock.

[Editor’s Note: eToro is a premium partner of Bitcoinist, as is clearly displayed on our homepage.]

U.K. Government Squashes Royal Mint’s Plans to Launch Gold-backed Cryptocurrency

Britain’s Royal Mint, a wholly government-owned mint whose primary objective is to create gold and silver coins for the state, will not be launching its gold-backed cryptocurrency any time soon, as the U.K. authorities have kicked against it, reported Reuters on October 23, 2018.

Royal Mint’s Digital Gold Ambition Sees Significant Setback

As earlier reported by BTCManager in November 2016, Royal Mint Ltd partnered with the Chicago Mercantile Exchange (CME), as part of plans to create a gold-backed digital asset called Royal Mint Gold (RMG).

Initially scheduled to go live in late 2017, when the cryptocurrency market was experiencing a strong bullish rally that saw the price of bitcoin nearly kissing $20,000, the CME, however, pulled out of the deal at the very last minute, leaving the organization without an exchange.

“CME’s management changed, and they walked away, didn’t want to get involved,” one of the sources claimed.

Not giving up without a fight, the Royal Mint reportedly tried to ally with a cryptocurrency exchange, but Britain’s finance ministry refused to approve the deal stating categorically that the unregulated nature of the crypto space coupled with its volatility is too big a gamble.

And if things went wrong, the image of the government, as well as the Mint, could be damaged beyond repair.

End of the Road?

Fast forward to 2018 and the Royal Mint’s distributed ledger technology-powered digital gold project has hit a significant snag that could eventually lead to the death of the initiative as the U.K. government has kicked against the plan, three anonymous sources told Reuters.

Commenting on the development, representative of the Mint refuted all contradictory claims and had reportedly told Reuters that the Royal Mint would have launched its RMG token in spring this year, but the current bearish market trend has made it delay the process.

“Sadly, due to the market conditions this did not prove possible at this time, but we will still revisit this if and when market conditions are right,” the Mint concluded.

While the creation of a gold-backed altcoin by a highly reputed government-owned organization like the Royal Mint would have undoubtedly given the cryptocurrency markets a considerable boost, other blockchain-based startups have however gone ahead to explore the world of asset-backed altcoins.

Earlier in September 2018, reports emerged that Eidoo Multi cryptocurrency wallet launched its gold-backed stablecoin called Ekon.

BitGo Launches Ethereum-based “Wrapped Bitcoin” for Providing Liquidity to dApps and DEXs

On October 26, 2018, crypto-finance company BitGo announced the launch of Wrapped Bitcoin (WBTC), an ERC20-compliant token built on the Ethereum blockchain and collateralized on a one-to-one basis with bitcoin.

“Power of Bitcoin”

Described as the “Power of Bitcoin and the Flexibility of ERC20,” the token’s website notes a majority of bitcoin trading takes place on centralized exchanges, which causes decentralized counterparts to face low liquidity and participation.

To address the above concerns, WBTC is aimed at providing greater liquidity to Ethereum-based applications and decentralized exchanges (DEX) with a bitcoin-equivalent for swift payments and collateral purposes.

BitGo will provide custodial services of all bitcoins exchanged as collateral and “mint” WBTC after community approval. The move lends transparency to the cryptocurrency-as-collateral business model and fits with BitGo’s broader vision of making “digital currencies usable for business.”

WBTC will be tokenized with a “full proof” of underlying bitcoin reserves, unlike the myriad of questionable stablecoins in circulation. The lack of verifiable collateral is a critical feature absent from the cryptocurrency markets today, which causes concerns of further market busts and threatens to erase the core ethos of digital assets: Shifting away from an opaque, centralized, and unverifiable financial system.

Each bitcoin backing a particular WBTC can be traced using a dashboard which displays wallet addresses and corresponding balance, while enthusiasts can track each token using an ERC20-focused block explorer like Etherscan.

Myriad Use Cases

The release ascertains WBTC can be used to collateralize other stablecoins, via an accountable and trusted asset type, while finding use in crypto-lending models or fulfilling payments for flexible smart contracts in the Ethereum ecosystem.

While the WBTC is scheduled for a January 2019 launch, several decentralized applications (dApps) are on board to utilize the product within their framework, including dark pool protocol Republic Protocol, stablecoin issuer MakerDAO, crypto-lending platform Dharma, and decentralized wallet-to-wallet trading service Airswap. Enumerating on the launch and factors leading to it, BitGo noted on its blog:

“We’ve seen significant institutional interest in the tokenization of assets like securities, commodities, and real estate. WBTC is an opportunity to contribute technical leadership to the advancement of blockchain and tokenization platforms.”

Meanwhile, the firm believes WBTC’s success can be leveraged to create comparable products and support asset tokenization. The release highlights the creation of a “digital gold” token while referring to its efforts to create Royal Mint Gold (RMG), a 2017 initiative that saw BitGo partner with the U.K. Royal Mint and Chicago Mercantile Exchange (CME) to transform physical gold into a digital asset.

How to Mine Vertcoin (VTC) on a Windows Laptop

Vertcoin (VTC) is an older cryptocurrency project that has been around from a time when airdrops and ICOs were almost unheard of. Launched in 2014, Vertcoin was initially touted by many as a significant challenger to the dominance of bitcoin.

Vertcoin discouraged centralized mining and thus makes it easier for individual miners and hobbyists to exert their influence on the network without needing to buy expensive mining rigs. The lack of support for centralized mining makes Vertcoin one of the few popular cryptocurrencies that are still possible to mine using a regular computer.

Vertcoin uses ASIC proof algorithm Lyra2REv2, making it suitable to mine in CPU and GPU, keeping $3,000 to $4,000 ASIC miners out of the equation and empowering users, hence earning the title as the “People’s Coin.” The Vertcoin team proudly claims to be the pioneer of ASIC resistant decentralized mining with their initiative starting in 2014.

The SegWit feature was activated on Vertcoin on May 7, 2017, and included Lightning Network technology. On December 12, 2017, the reward per block was halved from 50 to 25 VTC.

Vertcoin Hash Rate:

Vertcoin Hash Rate

(Source: BitinfoCharts)

Vertcoin Block Time:

Vertcoin Block Time

(Source: BitinfoCharts)

On October 7, 2018, hashrate for Vertcoin was 1.2 Th/s and block time stood at 2.44 minutes which means that at 1.2 Th/s, the network will be able to find one block in 2.44 minutes with 25 Vertcoin as the reward.

Mining Software

To mine Vertcoins, you have to install the one-click miner.

  1. Download the installer of the one-click miner from GitHub from here by clicking on VertcoinOneClickMinerSetup.ms. Vertcoin Once Click Miner
  2. Once downloaded, double-click on the setup File, click “Run” on the following prompt.Vertcoin Once Click Miner Setup
  3. Click on the “Next” prompts and finally click on Install. It will take approximately two minutes for installing the software. 

Wallet Installation

Download wallet from https://electrum.vertcoin.org/ or directly from GitHub by clicking on the portable.exe file. 

Portable

Run the Vertcoin installer. Keep the following two prompts with default options:

Electrum Setup

Electrum Install Wizard

You can also use two-factor authentication in case if you want to opt-in for better security.

Electrum Install Wizard 2

The seed is used for recovering your access to the wallet. Keep your Seed in a safe and secure place.

Electrum Install Wizard 3

It will ask to retype in the next window. Retype it, and then in the following window, type the password.

Now go to the “Receive” tab and copy your VTC address.

Electrum Install Wizard 5

Open the one-click miner that was installed and select “search pool.” There will be two options, one for “Network 1” and the other is “Network 2.” Network 1 is for miners with 100MH of power or greater, and Network 2 is for those who have less than 100MH hashing rate. Now, paste the wallet address under “Wallet Address” tab and click Scan.

P2P Node Pool Scanner

After scanning, arrange the result as per the latency and ensure that the latency is minimum, the fee is also low, and the uptime is a decent time of 50 days. This time delay is more so that participants can know that the pool you selected has been up for a certain period. It is good practice to choose two or three pools, in case one goes down, your mining is still not affected.

P2P Node Pool Scanner 2

And then click on “Add Selected Pool(s).”

The app is now ready to mine. There are three types you can mine with, and usually, GPU is faster than CPU. Make a selection based on your computer configuration.

Also, when you click on start, a prompt will explain that an update is available, click “OK” on the prompt, and after ten seconds mining will start.

P2P Node Pool Scanner 3

To see the command interface and determine what is happening in the background, stop the mining, go to settings, and enable “Show CLI.”

Once mining has started back up again, you will see the following interface:

Show CLI

When one of your blocks is successfully found, you can see your address in the window after clicking on the pools you are using.

P2P Node Pool Scanner 6
Once there is a value in the “Predicted payout,” the value will also appear in your wallet.

Vertcoin began its journey in the market with a coin price of approximately $0.07. Over the following month, its value surged more than 14,200 percent to $9.97 as of December 21, 2017. As of October 298, 2018, Vertcoin is valued at roughly $0.667 per coin, with a total market cap of just over $31 million.

Regardless of the over-the-top predictions that haven’t materialized, one can’t discount the fact that Vertcoin has survived five long years in the face of disruptive forces. This prompts many to conclude that Vertcoin has survived this long, while a plethora of coins has come and gone, because of its strong fundamentals.

Vertcoin Protocol Upgrade

Recently LYRA2REV2 ASIC MINER became available for sale, but the Vertcoin development team is not sure if these miners are functional or not. A Reddit discussion also points out that the LYRA2REV2 miner looks like a scam as there is a lack of abnormally difficult chart movement. The team has already started developing the VertHash algorithm which is likely to be both ASIC and NiceHash resistant.

For faster development of VertHash, the team has posted on Reddit a repurposing of exchange funds if further development of the algorithm is needed. VertHash has already completed its Proof of Concept stage and is now being tested on GPUs.

Thailand Warns Public from Investing in 9 Unregistered ICOs

Thailand’s Securities and Exchange Commission (SEC) has forbidden the general public from investing in nine unregistered initial coin offerings (ICOs) and cryptocurrencies. The companies in question failed to duly register their business, despite the introduction of a framework to facilitate cryptocurrency investing, reported Bangkok Post on October 27, 2018.

Nine ICOs Held

An investigation by the SEC found out the nine companies, identified as Every Coin, Orientum Coin, OneCoin, Tripxchain, G2S Expert, Singhcom, Enterprise, Adventure Hostel, TUC, and Kidstocurrency, were promoting their tokens on popular social media platforms, such as YouTube and Facebook to entice investors.

None of the accused had applied for the SEC’s approval before offering their tokens, with the watchdog adding individuals should be cautious of the “high investment risk.”

Apart from the approval, the held ICOs failed to meet the necessary qualifications to operate in the region and did not conduct third-party audits on their smart contracts. Furthermore, a lack of information disclosure for investment decision-making was observed by SEC, and the authority noted a possible shortage of liquidity for both trading and encashing of the nine tokens.

The SEC called out OneCoin, a Ponzi scheme disguised as a cryptocurrency, and lanced an investigation into the duping of investors for over $2 billion. The company faces scrutiny in several jurisdictions. China’s police forces recently made 98 arrests in connection to OneCoin, and Singapore’s Monetary Authority (MAS) publicly announced the controversies surrounding the token.

The SEC believes such firms are “opportunists” who bank on gullible investors by promising guaranteed investment returns from cryptocurrencies that are “structured like pyramid schemes.” The watchdog added:

“These schemes encourage individuals to seek more partners in the investment network, but there are no details available on business plans, product, platform or credible management team, the regulator said.”

Prior Applicants Await Decision

Meanwhile, six crypto-exchanges and two coin dealers who had applied for appropriate authorization await the SEC’s statements. However, as the businesses applied within a 90-day window between application and royal decree for digital assets, they are allowed to operate without any legal interruption in operations.

Under Thailand’s regulation for digital asset businesses, all cryptocurrencies, ICOs, exchanges, wallets, and any other related services are included. The legislation was enacted in May 2018 to support the burgeoning cryptocurrency market and derive economic value from its growth.

Oracle Announces a Blockchain-Based Product Focused on Supply Chain Efficiency

On October 23, 2018, Oracle Corp reported it was developing a new blockchain-based software-as-a-service (SaaS) application designed to streamline and improve the supply chain efficiency. This week Oracle announced the new blockchain-based product was already available.

Oracle’s Blockchain Push

Oracle is one of the most popular and reliable vendors in the software business Industry. Oracle annual revenue goes around $40 billion, and according to the Global 2018 Forbes List, the company is the second-largest software development company in the world.

The company has now launched a suite of blockchain-based software-as-a-service (SaaS) applications built through its own Oracle Blockchain Cloud Service. The software is focused on increasing transparency and traceability in supply chains. Previously, the company had already made public its intentions to launch a platform-as-a-service product along with decentralized ledger-based applications.  

The release of the product was scheduled for May 2018, but plans got changed to make a software-based application two months. Now the product is launched and ready to be used.

Benefits of the Application

The new product focuses on transaction efficiency and authenticating companies’ supply chains while using Hyperledger Fabric as the basis. The product is called Oracle Blockchain Applications Cloud and aims to speed up product delivery timeframes as well as improve overall customer satisfaction. It gives users the chance to track a product’s authenticity and reduce paper waste.

According to the press release, the new Oracle SaaS platform contains four different apps:

The “Lot Lineage and Provenance” feature enables product genealogy, serialization, and provenance by managing the lifecycle of hierarchical serial numbers, recording origin and authenticity of product components, and tracking all transformations of the product. It helps in regulatory compliance, targeted recalls, and preventing counterfeit components.

“Intelligent Track and Trace” feature enables end-to-end traceability of goods and transactions in supply chains to reduce delays and automate record keeping. This helps customers execute targeted product recalls, resolve disputes, reduce counterfeits, improve regulatory compliance, and protect against fraud.

“Warranty and Usage Tracking” feature removes paper-based processes and automates usage tracking for high-value assets.

“Intelligent Cold Chain” feature helps monitor and track the temperature-controlled supply chain, creating recommendations to optimize processes and ensure the quality and safety of refrigerated products in pharmaceutical and food and beverage industries.

The four apps were unveiled earlier this week at Oracle’s OpenWorld conference. At the launch, Rick Jewell Oracle’s senior vice president of Supply Chain & Manufacturing Cloud Applications commented:

“These blockchain applications work seamlessly with existing Oracle Cloud Applications and are out-of-the-box ready with pre-built integrations and business network templates for common business processes.”

A “Distributed” Alternative

Oracle has undergone a series of tests in cooperation with the Nigerian government, which is also seeking to use the blockchain technology to help manage the records and documentation from the import duties and customs.

A few of Oracle’s applications have already captured the interest of other companies, which have promptly started using them to monitor and improve a lot of their procedures. An example is Beer maker Alpha Acid Brewing in Belmont, California, that is presently using Oracle’s Intelligence Track and Trace blockchain application to keep track of ingredients like malt, yeast, and hops within the supply chain.

Kyle Bozicevic, the owner of Alpha Acid, stated:

“Consumers are better informed than ever before and are increasingly interested in what is in the products they consume. We can now track materials and premium ingredients from our suppliers and analyze sensor data from the production process for each batch.”

Rumors are now going on the internet saying that a potential partnership between Oracle and Tron is about to be announced. It seems that representatives from both companies met to at Tron’s headquarters in San Francisco, but the reason for the meeting has not been disclosed yet.

J.P. Morgan Banks on Quorum Blockchain to Offer Lucrative Trading Products

Global investment banking firm JP Morgan is building Quorum, an enterprise blockchain platform built on the Ethereum Platform. According to the Financial Review’s article published on October 29, 2018, JP Morgan believes that the Quorum platform can open up new trading opportunities in the next decade as it will help tokenize of a variety of assets which include gold bars, precious minerals, real estate, and expensive art.

JP Morgan Tokenizes Gold

JP Morgan’s Quorum, the enterprise version of the Ethereum blockchain, can enable the creation of smart contracts and decentralized applications. Umar Farooq, J.P. Morgan’s New York-based head of blockchain initiatives, mentioned the firm is the only financial player that owns an entire blockchain platform from the application to the protocol. The company has invested significantly in blockchain technologies since they believe that many opportunities can arise from the tokenization of commodities and assets.

In regards to the tokenization of gold, Farooq mentioned that there are currently people outside of J.P. Morgan who use Quorum to tokenize gold. The process begins with wrapping a bar into an electronically tagged tamper-proof case which tracks the gold from the mines to the end. Tokenizing gold brings many benefits as it allows transparency throughout the supply chain, helping consumers understand where the gold originally came from.

Farooq noted that people are willing to pay higher prices for gold that they can track and verify that it came from a socially responsible mine. While Quorum is currently being used to monitor gold, businesses can implement the process on other precious minerals like diamond and tantalum.

Farooq, however, noted that it’s not just precious minerals that can benefit from tokenization.

One can tokenize some assets and commodities, which can lead to innovation to the existing process of sales and trade. Tokenizing real estate or art can introduce the idea of fractionalized ownership. Instead of limiting expensive assets to individuals, many investors can be involved and have split ownership of these assets.

Dimon Admits The Value of Blockchain Technology

Although Jamie Dimon, the Chief Executive Officer of J.P. Morgan, stated that Bitcoin was “a fraud” in 2017, he had however mentioned that he regretted making that statement, adding that “blockchain is real,” in early 2018.

JP Morgan has been heavily involved with blockchain technology, especially since Quorum is not the only blockchain-related initiative from the investment banking firm. The Financial Review reported that J.P. Morgan created the Interbank Information Network which has over 100 different banks using blockchain technology to improve its payments information.

They’re also a member of the Enterprise Ethereum Alliance which is responsible for developing standards for the Ethereum technology. Farooq mentioned that being a part of the Alliance helps the bank benefit from any upgrades made to the public Ethereum blockchain. It also allows JP Morgan to interact with the growing Ethereum developer network.