HSBC Testing Out This Thing Called Blockchain

HSBC says performs first trade finance deal using single blockchain system

What's the story?

  • HSBC conducted a financial transaction on the blockchain Coda.
  • HSBC and Dutch bank ING completed the deal for Cargill last week when a shipment of soybeans was transported from Argentina to Malaysia via the global commodities trader’s Geneva and Singapore subsidiaries
  • The old process took days and created large paper-trails. 

Why Does This Matter?

I am super skeptical of private blockchain especially when large companies are touting their use cases of blockchain. My stance has remained consistent that large companies are using blockchain to claim "innovation," but don't need it. According to the article, the current system that companies use to engage in a letter of credits is paper-based. Thus, the obvious need to digitalize it. But why choose blockchain versus a centralize DB solution like MySQL. People will say that blockchain solves trust, but blockchain only works when transactions are on-chain, or you have the incentive, to be honest off-chain. Oracles or another system that ensures off-chain transactions remain honest are the only way to ensure blockchain is a viable system. Until then, I'll remain ultra skeptical of the projects below and see them as nothing more than "corporate innovation." 

Winklevoss Brothers Bitcoin Exchange Adds Zcash, Litecoin, Bitcoin Cash

What's the story?

  • Gemini is adding three new tokens to their exchange: Bitcoin Cash, Zcash, and Litecoin.
  • ZCash will go live first as NYDFS recently gave approval to Gemini for the listing.
  • Gemini touted ZCash's privacy features as to why NYDFS should approve the listing.

Why Does This Matter?

If you live in NY, you don't have many "legal" cryptocurrency exchange choices other than Gemini and Coinbase. This will be the first time ZCash can trade on one of these two exchanges. While you might not agree with the NYDFS, many states will look at them for guidance and this is a very bullish sign for Zcash that they were approved. ZCash was trading up ~23% for the day as I write this. When cryptocurrency exchanges, especially the large ones, add new tokens, we should continue to expect large spikes. It's a new pool liquidity which equals a new pool of buyers. When supply remains constant, but demand increases, the price will always increase. 

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