Blockchain News 19.07.2018

Blockchain spending to hit nearly $12B by 2022

A new report published by the International Data Corporation expects spending on blockchain solutions to increase annually at a growth rate of nearly 75% by 2022. Titled the “Worldwide Semiannual Blockchain Spending Guide” analysts at the firm expect total spending on projects in the blockchain industry to hit $11.7 billion in 2022 alone, compared to the $1.5 billion expected to be spent in 2018.

The report further added that “blockchain platform software will be the largest category of spending outside of the services category and one of the fastest growing categories overall, along with security software.” The report explains that data shows a total of $552 million was spent on blockchain by the financial sector alone in 2018. The distribution and services sector invested a reported $334 million.

trueDigital launches market-maker-based Bitcoin price index

trueDigital Holdings, a leading developer of institutional-grade digital asset trading solutions, has partnered with 10 liquidity providers including Genesis Global Trading, XBTO Group, Circle, DV Chain, Hehmeyer and Altonomy to create the first market maker based Bitcoin pricing index intending to set a new standard for the digital asset market demonstrating robustness and transparency in retail exchange-based Bitcoin pricing composites.

Michael Moro of Genesis Global Trading said “The digital asset market is still young, especially for financial institutions, trueDigital is methodically building the components needed to evolve this ecosystem and make it habitable for firms seeking exposure to digital assets. OTC indices are the next leap forward in the maturation of the market.” Formed in March 2018, TDH intends to launch a regulated, enterprise derivatives marketplace for digital assets.

All “Big Four” auditors to trial blockchain platform for financial reporting

The world’s 4 biggest auditing firms – Deloitte, EY, KPMG and PwC – are joining a group of 20 banks in Taiwan to trial a blockchain service for auditing public companies’ interim financial reports. According to local news, the new platform moves the public firms’ transaction data on a blockchain, where the banks participate as validators.

This allows auditing firms to view transactions through a traceable and tamper-proof chain of data in distributed manner, streamlining and automating the confirmation process. Taiwan’s Financial Information Service Co. expects the new technology to reduce the confirmation time from “half a month” to “within a day.” Following the trial, the firm expects to roll out the auditing service to the 1,400 public companies listed on the island next year.

South Korea plans tax perks for blockchain startups

The South Korean government has announced a plan to revise the current tax rules to widen benefits for companies that focus on the development of nascent technologies, including blockchain, as part of the country’s push for innovation growth. Tax rates are to be reduced for companies dealing with a range of 157 “new-growth technologies” in 11 areas.

The government has said further details of the proposal will be announced on July 26th, with the changes expected to take effect by the first quarter of 2019. In related news, South Korea’s Ministry of Science and ICT recently announced it plans to invest $9 million by the end of 2019 to support blockchain pilot programs in six public service areas.

Square shares hit all-time-high on news of NY users allowed to trade Bitcoin in-app

Shares of Square Inc. closed at a new high after the company said it received the proper license to allow Bitcoin trading on its Cash app in New York. The company was granted a virtual currency license by New York State on Monday.

Previously, Cash app users in New York couldn‘t buy and sell Bitcoin. Bitcoin trading is now available on the Cash app in 48 states, leaving just Georgia and Hawaii as the only two that don‘t allow Bitcoin trading on the app. Square shares are up 178% over the past 12 months, while the S&P 500 has gained 14%.

Bitcoin Investment Trust adds ~$10M in new investments every week

Grayscale Investments, the fund provider behind the Bitcoin Investment Trust, said that it is onboarding nearly $10 million in new investments every week, and the majority of that capital is coming from institutional investors. The New York-based firm, owned by the Digital Currency Group, made the announcement in its newly-released Digital Asset Investment Report, which details the investment company’s performance over the first half of 2018.

Institutional investors represent ~50% of the total investment (~$250M) into Grayscale products. Wealthy retail traders and retirement funds each make up 20% each as well. In addition to the BTC Investment Trust, Grayscale’s other fund products include the Digital Large Cap Fund, the firm’s first index product, and an individual investment fund for Litecoin.

Blockchain News 19.07.2018

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