The CEO of Blackrock, the world’s largest asset supervisor, has warned about further financial institution seizures and shutdowns that might end result from regulatory modifications in response to the failures of a number of main banks within the U.S. “It does appear inevitable that some banks will now want to tug again on lending to shore up their steadiness sheets, and we’re more likely to see stricter capital requirements for banks,” he added.
Larry Fink, the chairman and CEO of Blackrock, the world’s largest asset supervisor, shared his view on the U.S. economic system and up to date financial institution failures in his annual chairman’s letter to buyers, revealed this week.
“This previous week we noticed the most important financial institution failure in additional than 15 years as federal regulators seized Silicon Valley Financial institution. It is a traditional asset-liability mismatch. Two smaller banks failed up to now week as nicely,” Fink described. Silicon Valley Financial institution was shut down by regulators on March 10 whereas Signature Financial institution was seized by the New York State Division of Monetary Providers final Friday. Silvergate Financial institution additionally not too long ago introduced voluntary liquidation, and 11 banks bailed out First Republic Financial institution this week. In Switzerland, Credit score Suisse additionally fell into bother and acquired a bailout from the Swiss central financial institution.
“It’s too early to understand how widespread the injury is. The regulatory response has up to now been swift, and decisive actions have helped stave off contagion dangers. However markets stay on edge. Will asset-liability mismatches be the second domino to fall?” the Blackrock govt wrote, including:
We don’t know but whether or not the implications of straightforward cash and regulatory modifications will cascade all through the U.S. regional banking sector (akin to the S&L disaster [savings and loan crisis]) with extra seizures and shutdowns coming.
“It does appear inevitable that some banks will now want to tug again on lending to shore up their steadiness sheets, and we’re more likely to see stricter capital requirements for banks,” he continued.
“Over the long term, in the present day’s banking disaster will place larger significance on the position of capital markets. As banks probably develop into extra constrained of their lending, or as their purchasers awaken to those asset-liability mismatches, I anticipate they’ll probably flip in larger numbers to the capital markets for financing,” Fink defined.
The Blackrock govt additional warned: “Along with length mismatches, we might now additionally see liquidity mismatches. Years of decrease charges had the impact of driving some asset house owners to extend their commitments to illiquid investments — buying and selling decrease liquidity for greater returns. There’s a danger now of a liquidity mismatch for these asset house owners, particularly these with leveraged portfolios.” Fink detailed:
As inflation stays elevated, the Federal Reserve will keep centered on preventing inflation and proceed to boost charges. Whereas the monetary system is clearly stronger than it was in 2008, the financial and financial instruments out there to policymakers and regulators to deal with the present disaster are restricted, particularly with a divided authorities in the US.
“With greater rates of interest, governments can’t maintain current ranges of fiscal spending and the deficits of earlier a long time,” he moreover cautioned. “The U.S. authorities spent a report $213 billion on curiosity funds on its debt within the fourth quarter of 2022, up $63 billion from a 12 months earlier.”
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SINGAPORE, May 7, 2024 /PRNewswire/ — MetaComp Pte Ltd and its subsidiaries (collectively referred to as “MetaComp”) and Bosera Fund Management (International) Co., Ltd. (“Bosera International”) strengthened their collaboration to introduce the eagerly awaited Bosera cryptocurrency ETF to investors worldwide.
Bosera International and HashKey Capital Limited have jointly launched the Bosera HashKey Bitcoin ETF (3008.HK) and the Bosera HashKey Ethereum ETF (3009.HK), both of which began trading on 30 April 2024 on the Hong Kong Stock Exchange. These highly anticipated products have attracted significant attention from international regulators and the global investment community since their announcement, marking a pivotal step in providing investors with regulated, diversified access to the burgeoning digital asset markets.
MetaComp, a leading Singapore fintech company licensed by the Monetary Authority of Singapore (MAS) and specializing in blockchain technology and digital assets, is proud to establish this strategic cooperation with Bosera International to jointly promote innovative financial products on a global scale. Leveraging its proprietary Client Assets Management Platform, CAMP by MetaComp, as well as its deep technical and market expertise, MetaComp and its affiliate will spearhead the promotion of Bosera International’s cryptocurrency spot ETF to investors in Singapore and beyond. This collaboration underscores MetaComp’s commitment to advancing financial innovation within the framework of relevant regulations while delivering exceptional value to the global investment community.
In addition to introducing the cryptocurrency ETF, both parties plan to explore the seamless integration of Bosera International’s asset management solutions into MetaComp’s CAMP platform. This integration will empower investors with a comprehensive suite of financial tools. Furthermore, MetaComp aims to extend its digital payment token services to Bosera International, enhancing the latter’s digital asset management capabilities. Together, this collaboration will provide investors with a more holistic and streamlined financial experience, combining the strengths of both companies to deliver innovative, high-quality asset management solutions globally.
Dr. Bai Bo, Chairman and Co-founder of MetaComp, stated: “We are thrilled to deepen our partnership with Bosera International, as we jointly launch a series of innovative solutions in both traditional and cryptocurrency finance. MetaComp is dedicated to serving as a bridge between traditional and cryptocurrency finance, offering our clients secure, compliant, and innovative financial solutions that meet the evolving needs of today’s investors.”
For more details about this cooperation and to stay updated on future developments, please visit https://www.mce.sg/
About MetaComp Pte Ltd (www.mce.sg)
MetaComp is a leading Singapore-based digital asset platform that is licensed and regulated by the Monetary Authority of Singapore (MAS) under the Payment Services Act 2019. Operating under a P2B2C (platform-to-business, partners-to-clients) model, MetaComp provides an integrated end-to-end suite of services to its clients, empowering them to confidently enter the digital asset market with the much-needed safety, security, and compliance. Together with its parent company, Metaverse Green Exchange Pte. Ltd (a MAS-licensed CMS holder permitted to carry out, inter alia, brokerage and custody services), MetaComp introduces its suite of services through CAMP by MetaComp, a regulated Client Assets Management Platform, allowing businesses to develop and scale their digital asset offerings through OTC and exchange trading services, fiat payment, digital asset custody and prime brokerage.
SOURCE MetaComp Pte Ltd
The CEO of prominent cryptocurrency platform Binance, Richard Teng, unveiled in a blog post on Tuesday that undisclosed individuals in Nigeria sought substantial payments in digital currency to resolve the company’s challenges in the country.
The revelation comes in the wake of the detention of two senior Binance executives by the Nigerian government on February 28. Nadeem Anjarwalla and Tigran Gambaryan were held as part of an investigation into alleged illegal operations and forex rate manipulations.
Teng detailed Binance’s efforts to engage with Nigerian authorities, citing a meeting in Abuja on January 8, where the company faced criminal accusations.
He said that despite repeated requests, Binance did not receive specifics of the allegations, prompting concerns about the fairness of the process.
Teng said, “There were a number of reasons for that, including the sensitivity of the information and getting the opportunity to see the allegations in full and prepare a thorough substantive response.”
“The meeting ended with the Chair confirming they would consider the matter and revert through Binance’s local counsel.
“However, as our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.
“Later that day, our local counsel — representing us at that time — was summoned by the Committee through someone purporting to be their agent, who relayed the Committee’s terms and instructed our local counsel to advise us.
“Counsel reported back that he had been presented with a demand for a significant payment in cryptocurrency to be paid in secret within 48 hours to make these issues go away and that our decision was expected by the morning.
“Our team grew increasingly concerned about their safety in Nigeria and immediately departed.”
The Binance CEO however revealed that the request for payment was declined because it was not seen to be a “legitimate settlement offer”.
According to Teng, Binance made it clear that it would only negotiate a settlement after viewing the pertinent petition or the specifics of all the accusations. Any settlement “must be official, recorded in writing, and signed by all relevant parties,” he added.
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Bernstein analysts are confident that is on its way to $150,000 per coin by mid-2025 despite recent market corrections, the broker said in a research report on Tuesday.
The firm cites a shift from sentiment-driven to structurally-driven demand in Bitcoin markets, led by institutional interest and inflows into ETFs. As Bitcoin resumed its upward trajectory after dipping to a low of around $57,000, Bernstein noted the clearing of excess leverage in futures contracts and a positive reversal in ETF outflows.
A major highlight was the Grayscale Bitcoin Trust (BTC) (NYSE:) reporting its first inflow after 78 consecutive days of outflows, a milestone given its impact on market dynamics.
“Bitcoin’s current position at around $64,000 is just the beginning. The structure of the market is far stronger than during the 2021 euphoria at similar levels, largely driven by clear ETF-driven demand,” the report reads.
The bullish outlook is further supported by the sheer volume of cash flooding into Bitcoin ETFs, amassing nearly $12 billion within just three months of their launch. Bernstein expects this trend to persist, driven by increased allocations from private banks, wealth managers, and institutional investors, projecting around $70 billion in new inflows between 2024 and 2025.
The report also points to favorable regulatory developments and corporate adoption, citing companies like Block integrating Bitcoin into their treasury strategies. Moreover, the stability in Bitcoin’s hash rate post-halving and healthy miner transaction fees indicate a resilient mining sector poised for long-term market growth.
Bernstein expects that higher Bitcoin prices and transaction fees will offer miners a buffer even if production costs double post-halving.
Mining stocks have lagged behind the Bitcoin rally due to investors favoring a “long Bitcoin, short miners” strategy. The rationale behind this approach is the perceived safety in buying spot ETFs compared to mining stocks, which are susceptible to risks associated with the halving.
“Bitcoin mining dynamics are also supporting the market, with public miners expanding capacity and negotiating favorable terms amidst competitive pressures from AI capital expenditures,” Bernstein added.
With all these factors in place, Bernstein remains confident in their $150K Bitcoin target, viewing current prices as an attractive risk-reward opportunity for investors. The firm believes we are in the early stages of a longer and healthier Bitcoin cycle that could extend well into 2025.
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