Family Offices May See BTC as Alternative to Gold; World’s Second-Biggest Bank to Issue $3B in Bonds Tradable for BTC; Crypto Lender Cred Goes Bust

Hey 👋 fellow Blockchain & Crypto enthusiasts! Hope you are all keeping well and safe during these unprecedented times. We shall pass this 🙏🏽

P.S. Before we dive into what happened in Blockchain & Crypto last week, check out my Connecting the Dots Newsletter, where you will get much more. Every Saturday/Sunday👇🏼

Last week (9-14 November) was yet another interesting week in Blockchain & Crypto this year. Crypto lender Cred has filed for bankruptcy, showing the importance of following best practices; world’s second-biggest bank to will issue $3 billion in bonds tradable for Bitcoin; Deutsche Bank says CBDCs will replace cash in the long run, and more news and developments.

Without further ado, let us dive into what has happened in the financial technology sector this week. Let’s connect the dots.

Crypto Lender Cred Files for Bankruptcy 

Crypto lender Cred Inc. filed for Chapter 11 bankruptcy protection in Delaware after losing funds in fraud.

In its filing, Cred listed estimated assets of between $50 million and $100 million and liabilities between $100 million and $500 million. 

In an emailed press release, Cred said Grant Lyon has been named to the company's board to oversee the restructuring process. It has also hired MACCO Restructuring Group as financial adviser to evaluate M&A and other restructuring opportunities.

THE TAKEAWAY

Cred bankruptcy highlights the need for crypto-lending industry to adopt best practices around transparency, depository assurances, and reserve ratios. Financial institutions, even blockchain-based, can fail too. The most important thing here is to learn from it and move on.

World’s Second-Biggest Bank to Issue $3B in Bonds Tradable for Bitcoin

China Construction Bank (CCB) has tapped Labuan-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain.

According to a Wednesday report by the South China Morning Post, tokenized bond certificates will be issued through the state-owned bank’s Labuan, Malaysia, branch over a period of three months. 

It’s important to note that the digital securities will be exchangeable for Bitcoin on the Fusang exchange, as well as U.S. dollars. Trading is slated to commence this Friday.

THE TAKEAWAY

This is yet another brilliant illustration of how blockchain can add value in the financial services today. With the blockchain issuance, CCB – the second-largest bank globally by market capitalization – aims to reduce the costs traditionally associated with financial intermediaries. It will also offer the debt instruments at lower amounts to make them accessible to retail investors.

Family Offices May Now See Bitcoin as Alternative to Gold, According to JPMorgan Report

The Grayscale Bitcoin Trust is outperforming gold exchange-traded funds (ETFs), a trend perhaps driven by institutional investors like family offices, according to a report by JPMorgan analysts.

“This contract lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at bitcoin as an alternative to gold,” the analysts wrote in the Nov. 6 report.

THE TAKEAWAY

It’s not just millennials driving demand for bitcoin, but institutional investors like family offices and asset managers too. Is Bitcoin going mainstream? 🤔

Extra Reads & Quick Bites for Curious Minds🧠:

• Bitcoin overtakes the base money supply of the United Kingdom and Russia combined.
• Crypto lending startup BlockFi is planning to roll out its retail products early next year in Switzerland, the Netherlands and Italy.
• Bridgewater Associates founder and CIO Ray Dalio is expecting the growth of central bank digital currencies (CBDCs), but says he still sees problems with bitcoin as a currency.

Quote of the Week/🧠Food for Thought🧠

Follow the Smart Money.

Graph of the Week

Bitcoin exceeded $16,000 this, its highest point since January of 2018. The milestone occurred as the S&P500 and Dow Jones Industrial Average traded slightly down.

Week in Brief

Crypto lender Cred Inc. filed for Chapter 11 bankruptcy protection in Delaware after losing funds in fraud.

China Construction Bank (CCB) has tapped Labuan-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain.

The Grayscale Bitcoin Trust is outperforming gold exchange-traded funds (ETFs), a trend perhaps driven by institutional investors like family offices, according to a report by JPMorgan analysts.

Continue reading by subscribing to Connecting the Dots Newsletter. You will receive fresh news about Blockchain & Cryptocurrency with hot takeaways every Saturday/Sunday.

P.S. You might enjoy my earlier pieces as well:

👉 These are the Best Performing Stocks of the Last Decade

👉 Welcome to the Google Bank - Your Everyday Banking from Google, NOT a Bank.

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading company's expansion into Europe , I'm an active member of FinTech community and a TechFin evangelist.

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