Bitcoin startups will get the visa and financial institutions to support investment
Beijing on September 10th news, according to “the Wall Street journal” reported that Wall Street is more investment in a technology, this technology had been denounced as a fad of the.
Many large financial institutions have to San Francisco start-up companies Chain investment of $30 million, the company’s main business is the method of cooperation with banks and other financial institutions to develop financial asset transactions and transfer, these methods are used for the virtual currency bitcoin (Bitcoin) support system. These financial institutions, including visa, NASDAQ, Citigroup’s venture CitiVentures institutions, Capital One Financial Corp (CapitalOneFinancial), FiservInc. and OrangeSA etc..
Chain on Wednesday announced that this round of financing, but did not disclose its valuation. In addition the company also said that American Express CEO Jim Robinsonm (JimRobinsonIII), venture capitalists have joined the company’s board of directors.
This investment is the latest sign that Wall Street, bitcoin about turn. In bitcoin has just come out, banks and other financial companies have said that this virtual currency is unlikely to business transformation. The financial company is not interested in the actual use of bitcoin, but it allows bitcoin users instant and record transactions “blockchain” (blockchain) technology has replaced the cumbersome, costly and low security transaction procedures potential.
In the internal bank and third party company, whether there are transaction verification and processing procedures of foreign exchange or stock and other assets in a large number of unnecessary and overelaborate formalities.
The so-called “blockchain” refers to all the transaction records to use bitcoin too, but this record is not the existence of a central database or institutions, but throughout a network composed of independent computers, the network participants continue to carry out verification, rather than by a a central agency to verify.
This technology’s supporters said the technology stocks or other assets may become rapid turnover in a short period of time in a blink of an eye, but not like this need about three days time period, need to go through a number of intermediate steps.
Although many people on Wall Street are increasingly optimistic about the technology, but large financial institutions agreed to establish a new transaction processing and settlement agreement may take several years using this technology. In addition, the blockchain technology is safe enough to deal with a large number of sensitive transactions, as well as traditional financial institutions to completely change its operating mode in the end there is a problem more easily, it is still uncertain.
“We believe that the” blockchain “technology is very powerful, to transformation of financial asset transfers, but must have the right partner to ensure its success.” Chain CEO Adam Rudvin (AdamLudwin) said in an interview.
The company is currently working with the NASDAQ to cooperate, to facilitate the use of this technique to the private market unlisted companies stock trading. But if you want to change the transfer of shares or corporate bonds among investors, will need to reach agreement on the entire financial industry are widely.
“Is detail.” Study on “blockchain technology New York law school professor HoumanShadab said. “The employment agreement in how to do the problem, and the existing technology into a new and unproven platform, there are a lot of work to do.”
In addition to Chain, there are some other entrepreneurial companies are in fierce competition, to occupy the leading position in this new field. Chain’s competitors include New York based DigitalAssetHoldingsLLC and San Francisco startup RippleLabsInc., which is responsible for DigitalAsset served as executives at JP Morgan Blaise Masters (BlytheMasters).
Some industry experts said, how in the worldwide safety problem in terms of the transfer of assets, the whole industry is facing more and more challenges, this is reminiscent of another major event occurred on the market, the 1968 “paperwork crisis” (PaperworkCrisis). At the time, financial assets trading is settled by delivery of the certificate of entity, but a significant increase in trading volume is the financial company into a massive paperwork and unable to extricate themselves. At that time, the situation becomes very bad, so that the New York Stock Exchange (NYSE) will have weekly trading days reduced to four days.
In order to help solve this problem, the broker and the exchange helped create today called Depository Trust and clearing agencies (DepositoryTrust&; ClearingCorp) of the company, which is to provide convenience for the central organization of financial market transaction settlement and liquidation. Depository Trust and clearing agencies said the current total transaction value of the agency’s annual clearing up more than $1600 trillion.