🏦 Blockchain-Based Bank Payments: Fnality, Adhara, Partior Network

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Goooood Morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 🏦 Blockchain-Based Bank Payments: Fnality, Adhara, Partior Network

2️⃣ 💰 INX is Tokenizing Bitcoin Mining: $HAG

Without further ado, it's time to…

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🏦 Blockchain-Based Bank Payments

This week we have lots of news to cover around banks and blockchain-based settlements so without further ado, let’s get started in the UK with the testing of Fnality’s payment instrument and Adhara’s liquidity management software. The two integrated with the goal of providing intrabank liquidity solutions and have the backing of 17 major, multinational financial institutions, all with an interest in this working out considering they have cash and pools of liquidity distributed among branches around the world.

To test this, Fnality and Adhara trialed corporate client payments from Mexico in MXN to Singapore, received in SGD. The intermediary currency was USD handled through a centralized and tokenized USD liquidity hub. And the Singapore bank was paid with Fnality USD.

Now why does intrabank payments sound familiar? 

This reminds me of JPMorgan’s Partior blockchain payments network which has participants including Deutsche Bank, UBS, Standard Chartered, and more. As an update to this cross-border collaboration, acting Comptroller of the Currency Michael Hsu recently gave a speech in which he expressed his strong preference for permissioned blockchains over public ones to ensure safety and clearing of legal rights.

Considering he’s the US Banking regulator we can’t blame him for wanting to play it safe and according to Ledger Insights, the Partior Network has the green light from the OCC while the USDF Consortium’s regional bank version still doesn’t.

Since then they’ve pivoted to a permissioned-network approach. Now based on this speech it sounds like Michael Hsu would prefer not to have blockchain involved at all with payments however he did say the most beneficial use case for blockchain is, you guessed it, tokenized real world assets 😉 

💰 INX is Tokenizing Bitcoin Mining: $HAG

INX has had a huge week with a near 40% token pump on very high volume— and this is no accident.

INX announced that the HAG Bitcoin Mining security token offering, the first of its kind in the bitcoin mining space pursuant the SEC exemption under Reg D/S, is now officially open for investors on the INX.One platform.

Backed by Bitcoin computing power, HAG offers eligible investors a brand-new option to invest in Bitcoin through hashrate ownership with the security and compliance of the INX.One's regulated platform.

Some highlights from the offering page:

• Full-compliance: the HAG security token offering is made in compliance with Regulation D and Regulation S of the SEC. We fully abide by the regulations and fulfill investors’ need for compliance. A great gateway for Web2ers to Web3.

• Transparency & Timely Allocation: Through smart contracts, we will distribute 70% of the net yield from mined Bitcoin to the HAG holders directly in WBTC. Distributions will be paid on a monthly basis through the INX transfer agent.

• Sustainable hashing power: Each HAG aims to maintain a peg to 1 terahash per second of Bitcoin mining hashing power. We will reserve the remaining 30% of the net yield from mined Bitcoin to maintain the hashing power. In that way, your HAG’s efficiency should be sustained in the long term.

In addition to the opportunity to own an investment in an industry previously inaccessible, investors can also expect to receive a share of mined bitcoin directly into their digital wallets on a monthly basis. The INX transfer agent will distribute the dividends transparently and seamlessly in the form of wBTC.

This is what I’m calling the “American BMN1” token because it too represents a way to get exposure to bitcoin without directly buying and custodying it. Why does this matter? It can be an attractive option for traditional investors uncomfortable with going full web3 but wanting in on its upside. For wealth management, while the BMN1 token is suited for international investors, the HAG token is welcoming of American ones.

There’s no way of knowing how $HAG will perform as this is the primary offering and may not trade right away, however if you’re curious on how BMN1 did in Q3 2022, check out this STM Report on it!

As per usual, remember that all of this information is for educational purposes only and is NOT investment or legal advice! Consult your lawyers, wealth managers, and CPAs before making any investments and do your own research (DYOR).

💦 What else is Drippin’

State of Security Tokens 2023 - Q1 Extended Report

The Security Token Advisors State of Security Tokens 2023 - Q1 Extended report is brought to you by Provenance Blockchain Foundation!

Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols. This piece will detail the macro trends taking shape within the tokenization space as a function of service providers like transfer agents, broker-dealers, alternative trading systems, custodians, and third-parties, as well as issuers, blockchain foundations, asset managers, investment banks, and activity that Security Token Advisors sees on its advisory side

Take a read for analysis on common themes emerging for both primary and secondary markets! 👇

This is not financial or investment advice.

Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.