<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b1fb7bf1ae66247008b4f96-1760/gettyimages-950813690.jpg" border="0" alt="Co-Founder, Ethereum, Founder, ConsenSys Joseph Lubin speaks on stage during Tribeca Disruptive Innovation Awards - 2018 Tribeca Film Festival at Spring Studios on April 24, 2018 in New York City. (Photo by )" data-mce-source="Astrid Stawiarz/Getty Images for Tribeca Film Festival" data-mce-caption="Joseph Lubin, Cofounder of Ethereum and founder, ConsenSys." data-link="https://www.gettyimages.co.uk/license/950813690" /><p class="source"><span><a href="https://www.gettyimages.co.uk/license/950813690">Astrid Stawiarz/Getty Images for Tribeca Film Festival</a></span></p><p class="caption">Joseph Lubin, Cofounder of Ethereum and founder, ConsenSys.</p></div><p></p></div></div></p><ul class="summary-list"><li>Venture firm Two Sigma and blockchain company ConSensys have invested $8 million into digital-asset custody provider Trustology.</li><li>The startup tackles one of the key challenges in cryptocurrencies: safely holding digital assets in a way that protects them from thieves but also allows the rightful owner to get quick and easy access.</li><li>The funds will be used to develop new products, move into additional asset classes, and expand internationally. </li></ul><p>A company looking to solve one of the biggest pain-points in crypto just raised $8 million from two heavyweights. </p><p>London-based Trustology on Thursday announced it had raised funds from Two Sigma Ventures, the early-stage investor tied to one of the world's largest hedge funds, and ConSensys, the blockchain company led by Ethereum founder, Joseph Lubin. </p><p>Trustology tackles one of the key challenges in cryptocurrencies, safely holding digital assets in a way that protects them from thieves but also allows the rightful owner to get quick and easy access to it, say for purposes of intraday trading. With digital currencies, investors hold a so-called key that gives them access to their account. </p><p>Many firms have developed processes around "cold storage," effectively an offline wallet. But that can make it difficult get access to holdings quickly, making it less attractive for those who want to trade in and out of markets quickly. </p><p><span>On Wall Street, custody banks such as State Street and BNY Mellon safeguard large amounts of wealth for other institutions while abiding by strict regulatory requirements.</span><span> But in crypto, custody firms are just emerging.</span></p><p>A number of notable crypto investors<a href="https://www.businessinsider.com/galaxy-the-crypto-bank-founded-by-mike-novogratz-is-investing-hundreds-of-millions-of-dollars-in-projects-thatll-lure-wall-street-to-bitcoin-2018-6"> have said that solving custody is one of the last remaining challenges</a> holding back an influx of institutional money. Galaxy Digital Ventures and Goldman Sachs recently made a $15 million investment in <span>crypto custodian BitGo Holdings.<a href="https://www.businessinsider.com/fidelity-a-household-name-in-american-investing-is-plotting-a-big-move-into-cryptocurrency-trading-2018-6"> Fidelity Investments has even announced a crypto custody solution </a>that it expects to roll out next year.</span></p><p><strong>Read more:</strong><em> <a href="https://www.businessinsider.com/bitcoin-custody-at-goldman-sachs-2018-8">Goldman Sachs is reportedly looking to take another step into bitcoin with a custody product</a></em></p><p>The company's first product combines private-key protection with fast execution capabilities by keeping the keys inside "tamper proof" hardware pods that are hosted in secure data centers, according to the statement. Encrypted backups are held in the cloud. </p><p>A tag line on the firm's website sums it up: "<span>Safer than cold storage at hot wallet speeds." </span>Trustology's founder, Alex Batlin, previously led blockchain innovation as UBS Group and Bank of New York Mellon.</p><div title="Page 1"><p><span>"Trustology has developed breakthroughs in key </span>management and is providing support services to clients seeking unparalleled safeguarding for digital assets," Lubin said in a statement. "By prioritizing security without the need to sacrifice accessibility, Trustology will serve current digital asset holders and attract new institutional and individual investors to the space." </p><p>Funds for Trustology will be used to develop new products, move into additional asset classes and expand internationally, the statement said. </p><p><span>The funding comes despite a crash in the market for cryptocurrencies. Bitcoin, the largest, has fallen 80% percent since its December 2017 peak. Ethereum has slumped more than 90%.</span></p></div>

A company trying to solve one of the biggest pain-points in crypto just raised $8 million, and it could help lure in big Wall Street funds to the burgeoning industry

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5558c9c36da81120462f122e-920/screen shot 2015-05-17 at 10243 pm.png" border="0" alt="Mike Novogratz" data-mce-source="Wall Street Week" data-link="http://wallstreetweek.com/" /><p class="source"><span><a href="http://wallstreetweek.com/">Wall Street Week</a></span></p></div><p></p></div></div></strong></p><ul><li><strong>Michael Novogratz's merchant bank Galaxy Digital has access to hundreds of millions of dollars to invest in crypto companies. </strong></li><li><strong>Its venture arm is eyeing companies that are building infrastructure solutions to lure Wall Street to the market for digital coins.</strong></li></ul><hr /><p>Famed hedge funder-turned-crypto enthusiast Mike Novogratz launched merchant bank Galaxy Digital earlier this year and its venture capital arm is already hard at work.</p><p>Business Insider has learned that Galaxy, which has businesses in asset-management, trading, and investing, has made a significant number of investments in the market for digital coins which have not yet been disclosed publicly.  </p><p>People familiar with the firm's operation said that the principal investment team, which staffs four people, has invested in high-volume ICO projects and has a significant portfolio of early stage ventures. </p><p>The firm already announced it led a $15 million round in AlphaPoint, a New York firm that helps companies launch their own digital tokens, but other investments by Galaxy remain under wraps. </p><p>Leading the unit's efforts is Sam Englebardt, a venture capital veteran who joined Galaxy in 2017. Greg Wasserman, a former vice president at Goldman Sachs, joined the firm as co-head of the venture unit in February. Chris Zioli, formerly of Insight Ventures, also is on the team. </p><p>Galaxy has two pools of capital, <a href="https://block.one/news/block-one-and-mike-novogratzs-galaxy-digital-announce-joint-venture-for-new-325-million-eos-io-fund/">including a $325 million EOS fund</a>, which is specifically targeting companies that aim to operate off the EOS blockchain. Its second pool comes from the firm's balance sheet, which is in the "hundreds of millions," according to the people. </p><p>The firm's focus is to invest in infrastructure, meaning companies that are building products to help bridge the gap between Wall Street and crypto, like custody solutions and trading technology. </p><p>On Wall Street, custody banks such as State Street and BNY Mellon safeguard large amounts of wealth for other institutions while abiding by strict regulatory requirements. Some entities offer such solutions in crypto. BitGo, another crypto tech provider, is working on a qualified custodian product. Paxos, a New York-based firm, holds a trust-company charter in New York.</p><p>CMT Digital, another crypto venture capital firm, is looking at similar opportunities to Galaxy, said Colleen Sullivan, a partner at the firm. </p><p>"We look for things missing in the market," she added. "What can help usher a wave of institutional capital. That's better infrastructure and we definitely need custody solutions to mature."</p><p class="tagline">Get the latest Bitcoin price <a href="http://markets.businessinsider.com/currencies/BTC-USD">here.&gt;&gt;</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/impact-investor-says-stop-trying-help-people-without-including-them-2018-6">This impact investor says stop trying to help people without including them in the conversation</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/h2xbUWYp-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Galaxy, the crypto-bank founded by Mike Novogratz, is investing hundreds of millions of dollars in projects that'll lure Wall Street to bitcoin

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/52541fbf69bedd3c6222cfc1-2400/rtr3fioq.jpg" border="0" alt="trading" data-mce-source="Reuters/Brendan McDermid" data-mce-caption="NYSE Managing Director and floor governor Rudy Mass is pictured during the Re/Max Holdings IPO." /><p class="source"><span>Reuters/Brendan McDermid</span></p><p class="caption">NYSE Managing Director and floor governor Rudy Mass is pictured during the Re/Max Holdings IPO.</p></div><p></p></div></div></p><ul><li><strong>Goldman Sachs is putting on hold earlier plans to open a desk to trade physical cryptocurrencies, including bitcoin, according to people familiar with the matter.</strong></li><li><strong>The bank is downgrading the plans as the regulatory landscape for crypto remains uncertain. </strong></li><li><strong style="color: #222222;">Goldman is instead focusing its energy on a custody product for crypto that would better service large institutional clients. </strong></li></ul><hr /><p>Even Goldman Sachs, the Wall Street behemoth that trades in the markets' most esoteric assets, can't find a way to trade bitcoin. </p><p>The bank is ditching plans to open a desk for trading cryptocurrencies in the foreseeable future, according to people familiar with the matter, as the regulatory framework for crypto remains unclear.<br /><br />As part of that decision, Goldman has moved earlier plans to open a desk for trading cryptocurrencies farther down a list of priorities for how it can participate in cryptocurrency markets, the people said. It may revive these plans at another point, they added. </p><p>But for now, <a href="https://www.businessinsider.com/bitcoin-custody-at-goldman-sachs-2018-8">Goldman is focusing on other projects such as a custody product for crypto</a>, which would mean that the bank holds cryptocurrency and, potentially, keeps track of price changes, on behalf of large fund clients. <span>Many market observers have said that for<a href="https://www.businessinsider.com/a-tiny-crypto-firm-making-9-nine-figure-bitcoin-trades-is-taking-a-page-out-of-goldman-sachs-playbook-to-become-a-juggernaut-2018-6"> large institutional firms to get comfortable trading bitcoin, there need to be reputable custody offerings to safeguard holdings.</a></span></p><p>Despite months of expectation that Goldman would begin trading bitcoin earlier this summer, the investment bank has publicly preached patience as it studied the burgeoning industry. In recent weeks, however, executives have come to the conclusion that many steps still need to be taken, most of them outside its control, before a regulated bank would be allowed to trade cryptocurrencies, one of the people said. <br /><br />A Goldman spokesman declined to comment. The firm already makes markets for clients in <a href="https://www.businessinsider.com/bitcoin-cryptocurrency-futures-goldman-2017-12">bitcoin futures</a>, as well as contracts for difference, which allow an investor to bet on the price of bitcoin without owning the underlying asset. </p><p>Goldman has publicly tried to downplay its ambitions for creating a desk that trades physical cryptocurrencies, offering statements that it was still exploring the industry and trying to assess how best to serve customers. Over the last year, the price of bitcoin has fluctuated widely, and it now trades at $7,300 a coin, down from a high of more than $20,000. <br /><br />Goldman's interest first surfaced in October 2017, when reports suggested the firm was beginning to study the industry with a group made up of employees in the <span>currency-trading division as well as its principal strategic investments team. <br /><br />In December, Bloomberg reported that the bank hoped to have the desk up and running </span>no later than June. It was to be housed in the securities division, where the firm trades everything from stocks to bonds to currencies. And in April, <a href="https://www.nytimes.com/2018/05/02/technology/bitcoin-goldman-sachs.html">the bank hired Justin Schmidt as the bank's head of digital asset markets.</a> <span></span></p><p><span>In May, the NYTimes reported that a team at the bank was exploring a trading desk </span><span>if it could get regulatory approval and come up with a suitable way of dealing with the added risk of holding cryptocurrencies. </span>At the time, the paper said Schmidt was considering trading cash bitcoin if the bank could get regulatory approval from the Federal Reserve and New York state banking authorities.<br /><br /><span>The news coverage fed into the belief among industry participants that the bank would soon open its own trading desk.</span><br /><br />And yet, it's run into a regulatory roadblock, one of the people said, without providing further details. The bank was looking for some regulatory changes that have yet to materialize and would have protected banks like Goldman from some of the risks unique to trading cryptocurrencies, the person said. </p><p>Lael Brainard, a Fed governor who has spoken publicly about the opportunities and challenges for virtual currencies, has cited extreme volatility, lack of governance and legal frameworks for protecting consumers, and vulnerability to money laundering, as chief concerns. <br /><br /><span>"This combination of a new asset, which is not a liability of any individual or institution, and a new record keeping and transfer technology, which is not maintained by any single individual or institution, illustrates the powerful capabilities of today's technologies," she said in a May 15 speech. "But there are also serious challenges."</span></p><p><span>As Goldman pivots, it will compete with a number of firms looking to </span>become the provider of choice for clients looking for custody services<a href="https://www.businessinsider.com/coinbase-announces-coinbase-custody-2018-5">. Coinbase, the bitcoin exchange, and BitGo are two crypto-first firms eyeing custody. </a>Elsewhere, <a href="https://www.businessinsider.com/fidelity-a-household-name-in-american-investing-is-plotting-a-big-move-into-cryptocurrency-trading-2018-6">Fidelity, Nomura, and JPMorgan are exploring similar offerings.</a><span style="background-color: #ffff99;"></span><span style="font-weight: 400;"></span></p><p class="tagline">Get the latest Bitcoin price <a href="http://markets.businessinsider.com/currencies/BTC-USD">here.&gt;&gt;</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/apple-introduce-new-iphones-this-year-2018-8">Apple might introduce three new iPhones this year - here's what we know</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/O78z8YeY-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Goldman Sachs is ditching near-term plans to open a bitcoin trading desk - and instead focusing on a key business for driving Wall Street investment in crypto

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5be9e6120d7c67448645dfa8-800/crypto.jpg" border="0" alt="crypto" style="color: #000000;" data-mce-source="Getty" /><p class="source"><span>Getty</span></p><p class="caption">We can expect a lot of crypto-infrastructure-building activity in 2019.</p></div><p></p></div></div></p><ul class="summary-list"><li><span id="m_7875587180365550773m_6695279155833869127gmail-m_-8439543357255005408gmail-m_-3723884230349203003gmail-m_-6206652606513116630gmail-m_2322839083625122498gmail-m_4472825673900579818gmail-m_8297297189173430869gmail-m_-5361903212052791939gmail-m_1944929735630239628gmail-m_7928466160855262400m_-5105631367119751509gmail-docs-internal-guid-0bc7041a-7fff-1c27-170f-219454abe20d">In this op-ed, Kyle Samani, a co-founder and managing partner at Multicoin Capital, says that a</span>lthough crypto markets underperformed in 2018, the pace of underlying development activity has accelerated dramatically.</li><li>Most of the crypto-infrastructure-building activity that took place in 2017 was unknown to most, but we started to see the fruits of those labors in 2018 and can expect quite a bit more in 2019.</li><li><span>As infrastructure improves, more capital will move into crypto, spreads will tighten, and volumes will grow. </span></li></ul><p>Although crypto markets underperformed in 2018, the pace of underlying development activity has accelerated dramatically. This is true both with regards to underlying technology and market infrastructure.</p><p>Many still think that cryptoassets are not shortable, that there are no derivatives, and that SEC-qualified custodians don't exist, that there are no prime brokerage services, and that exchanges are unregulated.</p><p>All of these views are incorrect.</p><p>At the start of 2017, the market infrastructure could be accurately characterized as above. But over the course of 2017 many institutional investors began to recognize the <a href="https://multicoin.capital/2018/10/09/100-trillion/">$100 trillion opportunity</a> that crypto represents and began aggressively investing in crypto market infrastructure.</p><p>On the exchange and asset management front, the NYSE, CME, and CBOE, Fidelity, and Goldman Sachs. Among VCs, Andreessen Horowitz, Union Square Ventures, Craft Ventures, Tiger Global, Sequoia, and many others invested in picks-and-shovels crypto companies. Among traditional Wall Street trading firms, DRW, Jump Trading, Susquehanna International Group, and others began making markets programmatically, offering OTC trading, and arbitraging. Most recently, JP Morgan announced <a href="https://www.jpmorgan.com/global/news/digital-coin-payments">JPM coin</a>, a tool for settling inter-bank transfers more quickly and efficiently.</p><p>Although most of the crypto-infrastructure-building activity that took place in 2017 was unknown to most, we started to see the fruits of those labors in 2018, and can expect quite a bit more in 2019.</p><h2>Custody</h2><p>Today there are two SEC qualified crypto custodians: Coinbase Custody, and BitGo (backed by Goldman Sachs). Additionally, Bakkt, which is a spinout of the NYSE, will be an SEC qualified custodian when it launches later this year.</p><p>These firms are custodying not only Bitcoin, but an array of other digital assets. When we launched Multicoin Capital in October 2017, we were forced to self-custody the fund's assets. Today, we don't custody any assets ourselves. Custodians are adding support for new digital assets every month.</p><p>Digital asset custody is not yet as mature as equity custody. The biggest limitation in custody today is lack of support for intraday and high-frequency trading (HFT) strategies. However, the industry has made tremendous progress, and the custody solutions that are available today are sufficient for investors who don't require rapid intraday movements.</p><h2 dir="ltr"><span>Prime brokerage</span><span></span></h2><p dir="ltr"><span>Service providers such as </span><a href="https://www.coindesk.com/fidelity-reveals-cryptocurrency-and-digital-asset-trading-platform" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.coindesk.com/fidelity-reveals-cryptocurrency-and-digital-asset-trading-platform&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNGbkMT30r8KHAvEO7gUUUURjc0koA"><span>Fidelity</span></a><span> are launching trading and custodial services for enterprise clients. They are joined by Tagomi, an institutional broker led by Greg Tusar, the former global head of Goldman Sachs's equities trading business. High-quality service providers such as Fidelity and Tagomi provide the services institutional investors have come to expect from the traditional financial markets.</span><span></span></p><h2 dir="ltr"><span>Regulated exchanges</span><span></span></h2><p dir="ltr"><span>CME and CBOE have been trading cash-settled Bitcoin futures for more than a year. And CBOE has </span><a href="https://www.businessinsider.com/ether-futures-on-the-way-at-cboe-2018-8" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.businessinsider.com/ether-futures-on-the-way-at-cboe-2018-8&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNF2LGhiJ4RnVKkJv9EA9VxA_yIfRw"><span>stated</span></a><span> that they're considering adding Ether futures. Nasdaq </span><a href="https://www.coindesk.com/nasdaq-vaneck-partner-to-launch-crypto-2-0-futures-contracts" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.coindesk.com/nasdaq-vaneck-partner-to-launch-crypto-2-0-futures-contracts&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNEc5iHJr8hlrdKlrvwAUnqtNl8F4A"><span>stated</span></a><span> they're going to launch Bitcoin futures in the first half of 2019. And Bakkt (NYSE) is going live this year with Bitcoin futures.</span><span></span></p><p dir="ltr"><span>ErisX, which is backed by TD Ameritrade, DRW, and Fidelity, will launch in the first half of 2019 trading spot, and will add futures contracts in the second half of 2019 pending regulatory approval.</span><span></span></p><p dir="ltr"><a href="https://ledgerx.com/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://ledgerx.com/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNHzwov-S9gSix595MroLeXBNzQu-g"><span>LedgerX</span></a><span> has offered regulated Bitcoin options for most of 2018. They have a derivatives clearing license from the CFTC. In addition, their team is comprised of one </span><a href="https://www.linkedin.com/in/mwetjen/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.linkedin.com/in/mwetjen/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNFWeEY6mxsbc_1aDzyr1w726uH0lg"><span>previous CFTC commissioner</span></a><span>, one previous </span><a href="https://www.linkedin.com/in/anandaradhakrishnan/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.linkedin.com/in/anandaradhakrishnan/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNHhIsOj7c57qaT_46Y3sUbjy9CpUQ"><span>CFTC director of Clearing and Risk</span></a><span>, and have 2 team members who serve on the CFTC's Technology Advisory Committee.</span><span></span></p><p dir="ltr"><span>Coinbase </span><a href="https://blog.coinbase.com/our-path-to-listing-sec-regulated-crypto-securities-a1724e13bb5a" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://blog.coinbase.com/our-path-to-listing-sec-regulated-crypto-securities-a1724e13bb5a&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNGex7T7NZHoTtl35o1IQXGK_Ivuiw"><span>acquired both an ATS and a broker/dealer</span></a><span> this past summer, and Brian Armstrong, CEO, has </span><a href="https://techcrunch.com/2018/09/07/coinbase-plots-to-become-the-new-york-stock-exchange-of-crypto-securities/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://techcrunch.com/2018/09/07/coinbase-plots-to-become-the-new-york-stock-exchange-of-crypto-securities/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNGtM4bpm214l7zEi30Vtgx05rsaJw"><span>said</span></a><span> that they would like to trade securities. This is likely to roll out in 2019.</span><span></span></p><p dir="ltr"><span>There are already a lot of avenues trade crypto on regulated exchanges today, and there are a lot more coming in the next few months.</span><span></span></p><p dir="ltr"><span><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c9bccec569b5514b02dd402-1000/kyleheadshot.jpg" border="0" alt="Kyle Samani" data-mce-source="Courtesy of Kyle Samani" data-mce-caption="Kyle Samani." /><p class="source"><span>Courtesy of Kyle Samani</span></p><p class="caption">Kyle Samani, co-founder and managing partner at Multicoin Capital.</p></div><p></p></div></div></span></p><h2 dir="ltr"><span>Lending desks</span><span></span></h2><p dir="ltr"><a href="http://www.genesis-capital.com/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=http://www.genesis-capital.com/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNH9_TgaPHR5_tsMXiWKfH8yWBMDpA"><span>Genesis Capital</span></a><span> launched an institutional lending business in March of 2018. They have lent over </span><a href="https://genesiscap.co/q4-insights/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://genesiscap.co/q4-insights/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNFUsM8SafuGdpWH3sQiAL7t53gQ3A"><span>$1.1B</span></a><span> of assets since launch. </span><a href="https://www.galaxydigital.io/" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.galaxydigital.io/&amp;source=gmail&amp;ust=1553789179724000&amp;usg=AFQjCNHIcb9sTJLnXoOZPRzdKxVT2vDT8w"><span>Galaxy</span></a><span>, a publicly traded crypto-merchant bank, launched a lending desk in the last few months, and as a result, interest rates have declined substantially.</span><span></span></p><h2 dir="ltr"><span>The future ahead</span><span></span></h2><p dir="ltr"><span>As infrastructure improves, more capital will move into crypto, spreads will tighten, and volumes will grow. The pace of market development is compounding rapidly.</span><span></span></p><p dir="ltr"><span>Although crypto market infrastructure is not as mature as that of equities or FX, it will approach those levels much faster than most people realize because of the incredible nature of compounding. The crypto markets are now at a point in which investors can construct portfolios based of well-defined theses and hedge out many forms of risk. Albeit still a bit manual, it's now completely doable.</span><span></span></p><p dir="ltr"><span>By the end of this year, investors will be able to plug into a single prime broker and access spot and derivatives for the top assets from global liquidity pools. As these last few pieces come together, we expect the number of market participants to expand quickly as crypto will look and feel like more mature markets. And once that happens, we can expect the pace of new entrants to accelerate rapidly, further validating this promising new asset class.</span></p><p dir="ltr"><em><span id="m_7875587180365550773m_6695279155833869127gmail-m_-8439543357255005408gmail-m_-3723884230349203003gmail-m_-6206652606513116630gmail-m_2322839083625122498gmail-m_4472825673900579818gmail-m_8297297189173430869gmail-m_-5361903212052791939gmail-m_1944929735630239628gmail-m_7928466160855262400m_-5105631367119751509gmail-docs-internal-guid-0bc7041a-7fff-1c27-170f-219454abe20d">Kyle Samani is a co-founder and managing partner at Multicoin Capital, a thesis-driven cryptofund that invests in tokens reshaping entire sectors of the global economy. Disclosure: *Multicoin Capital is an investor in Bakkt and Tagomi.</span> </em></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/google-stadia-video-game-streaming-platform-console-event-watch-2019-3">Watch Google's Stadia video-game-platform event in 5 minutes</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/UkwgpP6L-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

A crypto manager lays out the market improvements to the currency and says 2019 will be a year to watch

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59ef5dd25124c9001ef257f0-800/fidelity-chairman-says-us-regulations-lag-social-media-advances.jpg" border="0" alt="FILE PHOTO: Fidelity Chairman and Chief Executive Officer Abigail Johnson interviews founder of Bloomberg L.P. and former New York City Mayor Michael Bloomberg about innovation at the Boston-based HubWeek in Boston, Massachusetts, U.S., October 13, 2017.    REUTERS/Brian Snyder" data-mce-source="Thomson Reuters" data-mce-caption="FILE PHOTO: Fidelity Chairman and CEO Abigail Johnson interviews founder of Bloomberg L.P. and former New York City Mayor Michael Bloomberg about innovation at the Boston-based HubWeek in Boston" /><p class="source"><span>Thomson Reuters</span></p><p class="caption">FILE PHOTO: Fidelity Chairman and CEO Abigail Johnson interviews founder of Bloomberg L.P. and former New York City Mayor Michael Bloomberg about innovation at the Boston-based HubWeek in Boston</p></div><p></p></div></div></p><ul><li><strong>Fidelity Investments, a firm that oversees $2.4 trillion in assets, is hiring to build a digital asset exchange, an internal job ad reviewed by Business Insider reveals. </strong></li><li><strong>The firm is also working on custody solutions for crypto, according to another job ad. </strong></li><li><strong>If Fidelity successfully launches these products, it would represent one of the biggest moves by a Wall Street firm into the market for digital assets.</strong></li></ul><hr /><p>Fidelity, one of the biggest providers of 401K services and other retirement products to Americans, is plotting the buildout of products that would push the market for bitcoin to the next level. </p><p>The wealth firm, which oversees $2.4 trillion in assets, <a href="http://www.businessinsider.com/bitcoin-price-now-available-on-fidelity-portfolio-tool">already allows certain clients to view their  crypto holdings next to their other accounts</a> in their Fidelity portfolio. And its chief executive officer Abigail Johnson is <a href="https://www.wsj.com/articles/fidelity-ceo-bringing-blockchain-to-the-masses-harder-than-it-seemed-1495548000">a noted proponent of bitcoin.</a></p><p>But Business Insider has learned Fidelity is looking for talent to build its own digital asset exchange, according to a job posting sent out to employees at the firm. </p><p>Specifically, the firm is looking for a DevOps System Engineer "to help engineer, create and deploy a Digital Asset exchange to both a public and private cloud."</p><p>People with knowledge of Fidelity's crypto ambitions told Business Insider the firm has been working on an offering that would allow clients to buy and sell certain digital assets for about a year. </p><p>If Fidelity does go through with launching a crypto exchange offering, it would arguably be among the biggest moves by a large Wall Street firm into the nascent crypto market, which stands at around $350 billion.</p><p>It would also pit Fidelity against a number of established crypto players, such as Coinbase, Kraken, and Bitfinex. To be sure, it's not exactly clear from the job ad whether the exchange would exist alongside Fidelity's other offerings on its site. </p><p>Such an offering could help legitimize the burgeoning crypto market, said market structure specialist Dave Weisberger. </p><p><span>"Fidelity's reputation for achieving best execution for their retail clients should help legitimize the asset class," Weisberger said. </span><span></span></p><p><span style="background-color: #ffffff;">A spokeswoman declined to comment on Fidelity's crypto ambitions. </span></p><p>Other established Wall Street players are also weighing their own moves into crypto. Goldman Sachs has a<a href="http://www.businessinsider.com/goldman-sachs-bitcoin-trading-desk-new-hire-2018-4"> team dedicated to building out a trading operation</a> tied to crypto and the New York Stock Exchange is reportedly building a crypto trading platform. </p><p><span style="background-color: #ffffff; color: #000000;">Yet other banks are remaining cautious. Regulatory and security risks are commonly cited as reasons bitcoin hasn't been adopted more broadly yet. </span></p><p>About a third of all crypto trading platforms have been hacked, according to a report by JPMorgan. The entrant of a player like Fidelity into the space could lure in retail investors into the market weary of trading on existing platforms. </p><p>Fidelity is also looking to hire staff to develop "first-in-class custodian services for Bitcoin and other digital currencies," according to another internal job ad. </p><p>The position falls under the firm's crypto division, the Fidelity Digital Asset Service unit. It is not clear if Fidelity has cleared the regulatory hurdles to operate a qualified custodian product aimed at institutions, of which there are only a handful operating in the crypto space. </p><p>On Wall Street, custody banks such as State Street and BNYMellon safeguard large amounts of wealth for other institutions while abiding by strict regulatory requirements. </p><p>Some entities offer such solutions in crypto. But they are small firms and their names don't carry the same weight as a Fidelity. BitGo, another crypto tech provider, is working on a qualified custodian product. Paxos, a New York-based firm, holds a<span> trust company charter in New York. </span></p><p>Crypto exchange Coinbase has its own custody product, Coinbase Custody, which is aimed at institutional Wall Street firms and went live earlier this year. </p><p>Weisberger said the move by Fidelity would make a lot of sense strategically.  </p><p><span>"They have many of the components already: a significant retail footprint across the spectrum of active to less active traders, a prime brokerage area that knows how to account for custody of assets, they operate an ATS already (called "CrossStream"), and have a reputation for excellence and risk control in their product offerings," he said. </span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/sallie-krawcheck-impact-investing-diversity-benefits-of-investing-in-women-2018-6">Former Wall Street CEO reveals how most financial products designed for women completely miss the point</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/q8RPQMRk-xjRU7l6Z.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

Fidelity, a household name in American investing, is plotting a big move into cryptocurrency trading

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c34e303bd77303433280b7c-2134/john0434 1.jpg" border="0" alt="Travis Scher, who leads DCG's VC investments which now spans over 130 portfolio companies in over 30 countries." data-mce-source="Travis Scher" /><p class="source"><span>Travis Scher</span></p><p class="caption">Travis Scher, head of the investment arm at Digital Currency Group.</p></div><p></p></div></div></strong></p><ul class="summary-list"><li><strong>While crypto tanked in 2018, investors are still pouring billions into the space. Blockchain and crypto-related firms raised $3.9 billion as of October 2018.</strong></li><li><strong>Travis Scher, who heads the investment arm at Digital Currency Group, shared his outlook on the crypto space with Business Insider. </strong></li><li><strong>Scher says the areas worth watching in 2018 include the rise of crypto infrastructure for institutional investors, blockchain-based games, and non-fungible tokens. </strong></li></ul><hr /><p>The cryptocurrency market kicked off the year of 2018 with a bang <a href="https://www.businessinsider.com/why-is-bitcoin-crashing-2018-11">but wrapped up with a slump.</a></p><p>After peaking at $20,000 in December 2017, bitcoin now trades at around $4,000 per coin. </p><p>But despite this sell-off, venture investors are still pouring money into the nascent industry. Blockchain and crypto-related companies raised $3.9 million in the first three quarters of 2018, according to Pitchbook. </p><p>Business Insider spoke with Travis Scher, who heads the investment arm at Digital Currency Group (DCG), to get his outlook on the key crypto trends he's watching in 2019. Founded by Barry Silbert, DCG has made investments in 130 crypto-focused portfolio companies, including market leaders like Coinbase, Circle, and Ledger. Here are the key trends he's following in the new year. </p><p><strong>More crypto infrastructure for big Wall Street investors </strong></p><p>From crypto exchanges like Coinbase and Kraken to crypto wallets like Abra, Blockchain, and Ledger, there's been a lot of growth in infrastructure for retail investors looking to enter the crypto space. Proper infrastructure for big, sophisticated Wall Street investors, however, like custodians and security standards, has lagged behind.</p><p>That is, until now, Scher says. </p><p><span>A number of established Wall Street firms have started to</span><a href="https://www.businessinsider.com/bitcoin-pops-after-report-goldman-sachs-will-start-trading-products-linked-to-bitcoin-2018-5"> dip their toes into trading crypto products and</a><span> are looking for market safeguards to which they're accustomed.</span></p><p><span style="font-weight: 400;">Intercontinental Exchange, the owner of the New York Stock Exchange, is <a href="https://medium.com/bakkt-blog/launch-and-faqs-e1a3f7691d7b">poised to launch</a> a bitcoin futures product on its Bakkt platform in January. ErisX, an exchange heavily backed by Wall Street investors like DRW, Virtual Financial and <span>TD Ameritrade</span>, will offer spot trading in cryptocurrencies like Bitcoin and Ether as well as future contracts in Bitcoin, subject to approval by the Commodity Futures Trading Commission. </span></p><p>Digital Currency Group has invested in four types of institutional infrastructure firms, including exchanges like ErisX, institutional custodians like BitGo and Ledger's enterprise Vault solution, new trading platforms like Omniex and SFOX, and data companies like Digital Assets Data and Flipside. </p><p><strong>Blockchain games and non-fungible tokens</strong></p><p>While blockchain is typically known as being a platform that facilitates the transaction of digital currencies, there are alternative uses of the technology. One includes games which are built on the blockchain. An early pioneer of these "blockchain games" is CryptoKitties in which gamers can collect, breed and trade cartoon kittens on the Ethereum blockchain. The game took off in late 2017 and went so viral that it once caused Ethereum network congestion.</p><p>Non-fungible tokens is what facilities digital collectible games like CryptoKitties. Each token is unique and distinguishable from others of the same class. A common analogy of non-fungible tokens is baseball cards - each has distinctive information and different degrees of scarcity. That compares to cryptocurrencies like bitcoin and ether which are fungible tokens, meaning they can be exchanged, much like a dollar bill. You can swap a dollar bill with another dollar bill, and it wouldn't make any difference.</p><p>Scher thinks the development of blockchain games and non-fungible tokens may allow the nascent technology to be adopted more widely. </p><p>"We'll see more experimentation around gaming and non-fungible tokens, which will see some adoption, hopefully some big hits, push the infrastructure forward and [lead to] a variety of other use cases," he said.</p><p>This sector is largely ignored by venture capitalist because the games are a hit-driven business, Scher said</p><p>"Venture capitalists should be paying attention to the ones that are building platforms and developer teams, companies that are not creating just one game but are building several developed business models that can succeed," he said. </p><p><strong>Slower funding for blockchain startups and crypto hedge funds</strong></p><p>Scher expects funding for crypto ventures to slow down in the first half of this year as the market cools down from crypto-mania. </p><p>"The first half of 2018 saw tremendous amount of venture investments in the crypto markets, but now we have been in a bear market for so long that no matter what way the market goes over the first six months of this year, I think venture fund convictions around this industry are definitely going to be lower," he said. </p><p>This means it will be much harder for new blockchain startups to raise money and for existing crypto companies to raise follow-on rounds. The plunge in the crypto market has caused a number of blockchain startups to shutter operations or downsize, as <a href="https://www.bloomberg.com/news/articles/2018-12-06/crypto-market-crash-is-causing-startups-to-shutter-operations">Bloomberg reported in December</a>. </p><p>Scher thinks the prolonged winter in crypto will have an impact on crypto hedge funds and that will ripple through token sales.</p><p>"A lot of these funds suffered tremendous losses in 2018, and I think a lot of them are going to shut down," he said. "There is going to be a real struggle to raise new money. As there is going to be less money going into the crypto funds, there is going to be less money available for token projects."</p><p>Crypto markets started off last year with a bang, and a large amount of new crypto hedge funds swarmed into the market. But as 2018 neared its end, the market lost nearly 80% of its value from the all-time high it recorded in 2017. According to Crypto Fund Research, 35 crypto hedge funds were forced to close shop in 2018. </p>

A leading investor at Barry Silbert's bitcoin investment firm shares his top crypto trends for 2019

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/57627d4fdd089549108b4ba8-2077/gettyimages-1318056.jpg" alt="thief robber stealing hack riot" data-mce-source="Sion Touhig/Getty Images" data-mce-caption="Protesters steal merchandise from a sporting goods store as fighting breaks out during a demonstration against the EU Summit June 15, 2001 in Gothenberg, Sweden." /><p class="source"><span>Sion Touhig/Getty Images</span></p></div><p></p></div></div>The price of bitcoin has dropped dramatically after hackers managed to steal more than $65 million-worth of the digital currency from a Hong Kong exchange.</p><p>BitFinex, one of the largest bitcoin exchanges, halted all trading on Tuesday evening <a href="http://blog.bitfinex.com/uncategorized/security-breach/">and alerted its users to a security breach</a>.</p><p>"We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach," the company said in a blog post. "The theft is being reported to-and we are co-operating with-law enforcement."</p><p><a href="https://www.reddit.com/r/Bitcoin/comments/4vupa6/p2shinfo_shows_movement_out_of_multisig_wallets/d61oe33">The company has confirmed that</a> 119,756 bitcoin were stolen - $65 million at current prices.</p><p>It's not yet clear what the nature of the security breach is, or who is responsible for the attack.</p><p>The price of bitcoin <a href="http://www.coindesk.com/bitcoin-drops-12-exchange-hack-amplifies-price-decline/">dropped on the news by as much as 20% compared to its 24-hour high, CoinDesk reported</a> - as low as $480, down from $607.</p><p>It's a huge hack - the second-largest ever successful confirmed attack on a bitcoin exchange. Back in 2014, MtGox, then the largest exchange, <a href="http://www.wired.com/2014/03/bitcoin-exchange/">collapsed after $460 million in bitcoin was stolen by apparent hackers.</a></p><p>Ethereum - an alternative digital currency - has recently been rocked by an attack on the DAO, a decentralised organisation that ran on its blockchain. <a href="http://uk.businessinsider.com/dao-hacked-ethereum-crashing-in-value-tens-of-millions-allegedly-stolen-2016-6">The attacker managed to obtain $50 million-worth of Ether</a>, but the community effectively split the currency in a "hard fork" to prevent them from being able to use it.</p><p>The attack of BitFinex will worry bitcoin users because it's one of the biggest exchanges out there: It dominates bitcoin-USD trading, making up 50% of total volume. It also disrupts what has been a bullish year for the currency thus far. As recently as January 2016, bitcoin was trading at just over $200 - less than a third of its $740-odd June 2016 highs.</p><p>"With [BitFinex] users funds secured using multisignature technology in partnership with BitGo - a lot more is at stake for the backbone of the Bitcoin industry with its stalwarts and prided tech under fire," CryptoCompare CEO Charles Hayter said. "With uncertainty comes volatility - with the block reward halving out of the way there is no clear path for bitcoin especially with divisions reappearing on the scaling debate. This BitFinex hack muddies the waters again for Bitcoin and opens up raw wounds in echoes of Mt Gox. "</p><p>Bitcoin is trying to shed the reputation for danger and volatility that incidents like MtGox helped create - and BitFinex's hack could be a significant setback.</p><h2>Here's the full blog post from Bitfinex:</h2><p style="padding-left: 30px;">Today we discovered a security breach that requires us to halt all trading on Bitfinex, as well as halt all digital token deposits to and withdrawals from Bitfinex.</p><p style="padding-left: 30px;">We are investigating the breach to determine what happened, but we know that some of our users have had their bitcoins stolen. We are undertaking a review to determine which users have been affected by the breach. While we conduct this initial investigation and secure our environment, bitfinex.com will be taken down and the maintenance page will be left up.</p><p style="padding-left: 30px;">The theft is being reported to-and we are co-operating with-law enforcement.</p><p style="padding-left: 30px;">As we account for individualized customer losses, we may need to settle open margin positions, associated financing, and/or collateral affected by the breach. Any settlements will be at the current market prices as of 18:00 UTC. We are taking this necessary accounting step to normalize account balances with the objective of resuming operations. We will look at various options to address customer losses later in the investigation. While we are halting all operations at this time, we can confirm that the breach was limited to bitcoin wallets; the other digital tokens traded on Bitfinex are unaffected.</p><p style="padding-left: 30px;">We will post updates as and when appropriate on our status page (Bitfinex.statuspage.io) and on the maintenance page. We are deeply concerned about this issue and we are committing every resource to try to resolve it. We ask for the community's patience as we unravel the causes and consequences of this breach.</p>      <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/milo-yiannopoulos-defends-his-leslie-jones-tweets-2016-8">Milo Yiannopoulos defends his Leslie Jones tweets: All I did was crack a few jokes about a Hollywood star</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="wyN28yNTE6UVyvXrixnss2wwNxxI7vqn" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'wyN28yNTE6UVyvXrixnss2wwNxxI7vqn',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Hackers stole $60 million from a bitcoin exchange in a massive heist

<p><em>This week's payments roundup comes from Payments Insider, the daily briefing delivered first thing every morning exclusively to <a href="https://intelligence.businessinsider.com/?utm_source=House&amp;utm_medium=Edit&amp;utm_term=Payments-Weekly-Free&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">BI Intelligence</a> members.</em></p>
<hr />
<p><strong>RUSSIA REPORTEDLY FREES CYBERCRIME CONVICT TO BUILD NATIONAL PAYMENTS NETWORK</strong> </p>
<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5391d554ecad0452604422b1-852-639/pavelvrupblevslky1-1.jpg" border="0" alt="PavelVrupblevslky1" /><p class="source"><span><a href="http://commons.wikimedia.org/wiki/File:PavelVrupblevslky1.jpg">Wikimedia.org</a></span></p><p class="caption">Pavel Vrublevsky</p></div><p></p></div></div>An ex-con granted early release from a Russian penal colony will play a key role in building that country's national payments network, according to Russian journalist <a href="http://irek-murtazin.livejournal.com/1205175.html">Irek Murtazin</a>.</p>
<p><a href="http://www.theage.com.au/it-pro/security-it/russian-internet-payment-boss-sentenced-20130807-hv179.html">Convicted</a> last year of organizing a web attack on Russian airline Aeroflot, Pavel Vrublevsky, the co-founder of major Russian e-payments company ChronoPay, <a href="http://rapsinews.com/judicial_news/20140527/271414543.html">was inexplicably released</a> last week on early parole.</p>
<p>Vrublevsky's release came with "an offer he couldn't refuse," writes Murtazin  - to help run Russia's <a href="https://intelligence.businessinsider.com/visas-crisis--starbucks-mobile-payments--squares-new-office-2014-4">new national payments network</a>, set to roll out on July 1.</p>
<p><strong>APPLE WARMS UP TO BITCOIN, ALLOWS FIRST WALLET APP</strong> </p>
<p>Just days after reports surfaced that Apple had <a href="https://intelligence.businessinsider.com/payments-insider-visa-cfo-to-resign--apple-reversal-on-bitcoin--popmoney-mobile-growth-2014-6">updated its app developer guidelines</a> to allow "approved virtual currencies," Australia-based Bitcoin wallet CoinJar <a href="https://itunes.apple.com/au/app/coinjar-for-iphone/id725209873?mt=8&amp;ign-mpt=uo%3D4">reappeared on the</a> iOS app store in Australia.</p>
<p>Apple had previously rejected apps designed to send or receive payment in Bitcoin, though an official ban was never announced.</p>
<p>The new developer guidelines allow apps that "facilitate transmission of approved virtual currencies provided that they do so in compliance with all state and federal laws for the territories in which the app functions."  </p>
<p>"This is a sign that the [Bitcoin] ecosystem is maturing and gaining credibility," Bill Lee, an investor in bitcoin wallet BitGo, told <a href="http://www.bloomberg.com/news/2014-06-03/apple-allows-virtual-currencies-in-apps-opening-door-to-bitcoin.html">Bloomberg</a> in an e-mail. In addition to CoinJar, several Bitcoin wallet developers were reportedly planning to submit previously rejected wallet apps as soon as this week. </p>
<p><strong>FTC WINS COURT ORDER IN PAYDAY LENDING CRACKDOWN</strong> </p>
<p>A U.S. federal judge last week <a href="http://www.ftc.gov/news-events/press-releases/2014/06/us-district-judge-finds-payday-lender-amg-services-deceived?utm_source=govdelivery">found</a> payday lender AMG Services liable for engaging in deceptive practices, another blow in a widespread federal crackdown on the payday lending industry, which originates an estimated $27 billion in annual loan volume.</p>
<p>The judgement comes in a civil suit filed by the Federal Trade Commission (FTC), one of several suits filed in an FTC "crackdown" against payday lenders that it accuses of tricking customers into what are effectively triple-digit interest rates.</p>
<p>As <a href="https://intelligence.businessinsider.com/payments-insider-squares-bold-move--operation-chokepoint--april-spendtrend-results-2014-5">we've reported</a>, the U.S. Department of Justice, a separate federal enforcement arm, is cracking down on banks that allow allegedly deceptive lenders access to borrower bank accounts via the federal ACH electronic money transfer system.</p>
<p><strong>NIGERIANS CLAMOR FOR PAYPAL ACCESS </strong></p>
<p>A group of Nigerians have issued a plea to PayPal, and it doesn't involve dubious schemes for moving massive sums of money abroad on behalf of a deposed ruler. Nigeria-based responsive web-design shop Creativity Kills has <a href="http://www.change.org/en-GB/petitions/paypal-bring-paypal-to-nigeria">posted a petition</a> on Change.org asking the U.S.-based PayPal to extend operations to Nigeria, <a href="https://www.paypal.com/webapps/mpp/country-worldwide">one of the few</a> countries it does not currently serve.</p>
<p>"Granted, Nigeria is known for internet fraud, but NOT everyone in Nigeria is a fraud," the petition reads. "This has become a source of frustration for us the Legit people who want to carry out ecommerce online."</p>
<p>The petition had attracted 464 signatures at press time.</p>
<p>"We would like to thank the people of Nigeria for their enthusiasm," PayPal wrote in a statement to BI Intelligence.</p>
<p>"While we do not comment on future plans, we can confirm that we [are] evaluating ways to improve our product offerings to best serve the needs of merchants and consumers in this market."</p>
<p><em><a href="http://e.businessinsider.com/join/biipaymentsform" target="_blank">Click here to subscribe to Payments Insider and receive it in your inbox everyday</a>. </em><em style="font-size: 15px; line-height: 1.5em;"> </em></p>
<p><em><strong>RELATED: </strong></em><strong><a href="http://www.businessinsider.com/paypal-wants-to-let-you-pay-with-your-fingerprint-using-the-new-iphone-touch-id-interface-2014-6">PayPal Moves Quickly To Integrate Apple's Fingerprint Reader Into Its Apps</a></strong></p>
<p><em> </em></p>

You Searched For "BitGo" and got 8 results

A company trying to solve one of the biggest pain-points in crypto just raised $8 million, and it could help lure in big Wall Street funds to the burgeoning industry

Dakin Campbell

Galaxy, the crypto-bank founded by Mike Novogratz, is investing hundreds of millions of dollars in projects that'll lure Wall Street to bitcoin

Frank Chaparro

Goldman Sachs is ditching near-term plans to open a bitcoin trading desk - and instead focusing on a key business for driving Wall Street investment in crypto

Dakin Campbell,Frank Chaparro

A crypto manager lays out the market improvements to the currency and says 2019 will be a year to watch

Kyle Samani, Contributor

Fidelity, a household name in American investing, is plotting a big move into cryptocurrency trading

Frank Chaparro

A leading investor at Barry Silbert's bitcoin investment firm shares his top crypto trends for 2019

Madeline Shi

Hackers stole $60 million from a bitcoin exchange in a massive heist

Rob Price

The Week In Payments: Russia Frees Convicted Hacker For National Payments Scheme

Keith Griffith