Fintech Fridays Episode 32: Rallying behind Bitcoin with Frederick T. Pye

share save 171 16 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye

NCFA Canada | May 24, 2019

JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY.

FF EP32 Fred Pye banner - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye

Ep32-May 24:  Rallying behind Bitcoin with Frederick T. Pye

HOST: Manseeb Khan, Fintech Friday's show host

GUEST:  FREDERICK T. PYEPresident & CEO3iQ Corp (Linkedin)

BIO:  Fred kick-started his career as a precious metal and foreign exchange trader at Guardian Trust. In 1986, they were the first to list gold, silver, and platinum certificates on the Montreal Stock Exchange. Fred later joined Fidelity Investments, where he was part of a team that saw its assets rise from 85 million to over 7.5 billion. Through the launch of creative and exotic investment products, Fred started his own firm, which worked diligently with Canadian regulatory bodies to establish the first mutual fund in Canada that was allowed to take short positions. Finally, as founder and CEO of 3iQ, he and his team have worked cooperatively with the OSC for the last 2 and a half years to launch the first regulated Bitcoin fund in Canada. This fund will be the first major exchange-traded cryptocurrency fund in North America.

About this episode:  On this week's episode of NCFA's Fintech Friday Podcast, our host sits down with Frederick T. Pye from 3iQ. The chat about bitcoin trusts, ETF's and rallying behind bitcoin.  Enjoy!

 

3iQ FFCON19 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye

Subscribe and tune in each Friday to check out the latest movers and shakers in fintech.

Listen to more podcasts here: Season 1 | Season 2

 


Transcription of Interview

Intro: Welcome fintech Friday's a weekly podcast brought to you by the National Crowdfunding and Fintech Association of Canada and partners.Covering all things fintech block chain be AI and alternative finance.

Manseeb Khan: Thank you so much for sitting down today.

Frederick T. Pye: Great. Thanks for having me Manseeb.

Manseeb Khan: Yeah for sure. So, Fred for I guess the five or six audience members that may not know essentially who you are and the amazing work that you do at three IQ. Could you just give us a real quick rundown?

Frederick T. Pye: Yeah well first of all I think I'm probably one of the oldest guys in crypto so that's why most people would know me from that and I guess my claim to fame was I was part of a team back in the late 80s that took Fidelity Investments from 80 million to 7.5 billion and really put them on the map in Canada with a lot of people don't know is before that I was actually the first one to list gold silver and platinum certificates on the Montreal Stock Exchange for a way to give investment advisors to buy gold and silver and platinum for their client portfolios. And it was really funny because back in the early 80s when we're trying to do that the Securities Commission as the regulator said well hang on a second gold is speculative it's volatile. It's used for illegal purposes. And you know why it’s would not in the public interest to have gold listed on an exchange. And funny enough flash forward 30 some odd years later I'm trying to do the same by listing Bitcoin ether in somebody other digital assets on the exchanges.

Manseeb Khan: Right. That's. It's funny how times have changed. Right now, it's gold and silver are probably the most secure investment that you probably are getting to. Exactly. For a lot of the audience members that may not know  3iQ actually works with the Ontario security regulation. Fred could you just talk about your dealings with that you guys also work with not only the Ontario securities commission, but you guys are also partnered up with the Canadian securities exchange. Could you just talk about just the relationship between that, how that happened and pretty much what can the audience expect when it comes to a timeline with both partnerships?|

Frederick T. Pye: Yeah well, I would say that we've been we have been working with the Ontario Securities Commission for a few years now to get this fund to the market and it's kind of come to a head and I'll explain that in just a bit. But to give 3iQ or a bit of a background we actually started in 2012. I was working with Landry investment management we were running a global multi asset portfolio. And when you're running these global multi asset portfolios you've noticed that everything just was becoming completely correlated. So as a hedge fund manager I was always looking for perfect non correlated asset class and sure enough I fell down the rabbit hole and stumbled on it on bitcoin at the beginning of 2015 and it was shortly after then that Chris Bronski and Adam White wrote a white paper saying ringing the bell on a new asset class. And Chris I knew from Arc invest quite well and I read this white paper and I said hey now we can create a product out of it. So, we were going to just do acquire a fund that was already listed on the  Toronto Stock Exchange and de facto do an RTO and end up with a Bitcoin Fund on the Toronto Stock Exchange in 2016 circa three-hundred-and-fifty-dollar price of Bitcoin. We went to those securities regulators in November of 2016 and said you know we can go in the backdoor or we can go in the front door and we'll go in the front door if you want to be first then if you love the asset class and you should move ahead and the guy by the name of John Mountain said absolutely we want to be first. We can do this we can get through all the hurdles that we have to do. So, we filed in in April of 2017 the first Bitcoin Fund to be listed on a major exchange like the Toronto Stock Exchange. All of a sudden we went back and forth two or three times just getting the custodian right getting the insurance right getting the clearing right getting all of the pieces right and then all of a sudden it hit a brick wall the fund got to hit a brick wall because Ontario created something called the launch pad. The launch pad if you read their website it says they're there to facilitate and reduce the regulatory burden to get crypto funds to the market around exactly the opposite happened. And we got thrown into regulatory hell from April 2016. We then launched a hedge fund called a Global crypto Asset Fund which is an exempt market fund. They asked us to pull back. We said Well it's an exempt market and it's not under the regulatory purview of the OSC. They said no but we as money managers are. So, Canada went the route to try and regulate money managers instead of regulating the funds which is what they should have done. And unfortunately, when you take a look at the Price Waterhouse study that comes out there's 250 asset managers running 10 billion dollars in the United States of crypto assets. In Canada you have to know you know it's absolutely silly. There were three. There were four. ROSS SMITH From Calgary a close shop. And the third one. First block capital with their bitcoin trust. We just recently purchased the bitcoin trust from first block capital, and we bought their ETF from them and First Block made an investment in  3iQ. So, we're just kind of teaming up together. But having said that after two and a half years we finally got a firm rejection and we have applied to go to a public hearing on June 3rd. So, we encourage all your listeners to look that up and come and join us at the Ontario Securities Commission and see our center to get the first bitcoin fund listed in Canada.

Manseeb Khan: Yeah. No, I think many of the audience members would be very excited to join you. And it was June 3rd. You said right. `

Frederick T. Pye: June 3rd Yeah.

Manseeb Khan: Yeah. Okay cool. We'll definitely. Well we circle back when the date comes closer just to give everybody  a little bit more of a rally call. So, I want to touch a little bit. So, I'm going to put a pin in the First Block and just essentially what a bitcoin trust is. Could you guys talk a little bit more of your current initiatives right now that you have now with the dealings of the Ontario Securities Commission with First Block. So, I guess could you talk a little bit of what the current initiatives at 3iQ are.

Frederick T. Pye: So, when one First Block launched the bitcoin trust it isn't again exempt market when we say exempt market it means it's for accredited investors and that's an absolutely ridiculous component because the people that understand bitcoin are 35 or 40 years and under. And you know they don't necessarily make two hundred and fifty thousand a year for the last three years. They don't necessarily have amassed five million dollars in assets. So, you know a completely misses the audience on crypto funds. However, it's the only option we have at this time. Clients are investors such as yourself can open up an account. It's a discretionary account at 3iQ and our company is portfolio managers can buy a free RSP or your TFSA. But because First Block had the bitcoin trust we didn't launch an exempt market Bitcoin trust because we're going for a public Bitcoin Fund. Yeah. So right now, in the exempt market in meaning in the accredited investor market we have the bitcoin trust. And we also have something called the  3iQ global crypto asset fund. The Global crypto asset is 50 percent Bitcoin, 35 percent ether and 10 percent lite coin. And this fund obviously is absolutely on fire. Now I think its up 100 percent year to date. So, we're hoping that the whole crypto market settles down for a bit because 100 percent good for a 12-month return. I don't need any more this year.

Manseeb Khan: Yeah you exceeded your targets and then some.

Frederick T. Pye: So, we've exceeded our targets at 100 percent this year. But you know it gives us a bit more of a broader post. It's very low for me. I'll turn it over on how Canadians can actually purchase that and just get that off our website it says. Click on the button buy here as accredited investor or they send us a note we'll walk them through the whole process. So that's really the two products we have. We do have an ETF which is the distributed ledger technology adopter’s ETF. They weren't allowed to use block chain in their ETF. So, they use distributed ledger technology adopters. This is more of a US large cap. So, this is this will hold the people such as IBM, Apple and the rest of Amazon the people that have blockchain initiative announced public block chain initiative that fund also does very very well. So, you know we're encouraged about that can be bought under the symbol f b c n on the Toronto Stock Exchange or sorry on the neo exchange from your advisors. Mm hmm.

Manseeb Khan: Awesome. So, you guys are coming out with a stable coin with Mavennet. Could you talk about the I guess how the partnership started. Why you guys considered creating a stable coin and what can we expect from the stable coin partners?

Frederick T. Pye: Well the stable coin is called QCAD and everything 3iQ. Well we'll produce we'll have a Q on the front of it right for the for the just audio listeners. He's actually wearing the QCAD shirt . He just stood up and showed up. Yeah. So.

Frederick T. Pye: About six months ago I noticed Tether and a few of the other stable coins started to proliferate and I started pontificating and I said you know what. The forex markets about a five trillion dollar a day trading market the single largest business and trading market in the world. But you know there's a couple of thousand crypto traders. How do we get the tens of thousands of forex traders to trade crypto and all of a sudden people needed the US dollar stable coin? So, when they were on exchanges when Bitcoin starts to fall, they were somewhere they could hide, you know they could put their accounts into a stable coin, and they could hide and wait for the next rally. Yeah. And I was looking at this and I said Well if you've now got a digital US dollar meaning a digital US stable coin if you have now a digital Canadian Dollar or digital Hong Kong dollar or a digital Japanese Yen all of a sudden the forex traders know how to trade Canadian dollars and US dollars or Japanese Yen or Hong Kong dollars trading them digitally will be very, very easy. And the distance from trading Fiat forex into digital forex or paper forex and to digital forex is not that big a jump. And therefore, once these thousands of people are trading digital forex all of a sudden, the jump from QCAD to QBTC is not very big. They can now start trading Bitcoin or any of the other digital assets right. Kesam Frank and myself wrote a white paper that's on Medium that actually shows that if you take a look at the pyramid of this unstable crypto platform on top of a very stable on top of a very stable forex base it's missing two triangles to stabilize the pyramid to take care of the rest of crypto to the moon. So, though we think that the movement you know stable coins are three and a half billion today I expect them to be 30 billion in the next three years North of 300 billion in the next five years as well. We want to play in that space. So, we're under full development right now Mavennet out of Toronto is easily one of the best blockchain developers that we've had a chance to interview and talk with. And. having said that they're also part of the Eon network and are well versed on Aon is a or an interoperable platform for all block chains to make block chains talk together so it doesn't matter where people place their stable coin at some point in time that they'll be all. Portable between different block teams.

Manseeb Khan: Right. That's really exciting we're actually Mavennet is actually going to be on the show in the next coming up episodes so definitely stay tuned for that. I guess I'll throw it now to you. I mean now that we have not now that we can now, we talked about the Ontario security commission you guys initially starting your partnership with the Canadian securities exchange. Is there anything else that you'd like to at least I guess share with the audience is there's something that we should kind of keep in mind when it comes to crypto investment funds.

Frederick T. Pye: Well you know Canada has a bunch of big challenges in Canada right now. You know you hear that the Ontario government says oh the door is wide open for fintech you know you're pushing on an open door. you know where you want to encourage fintech to Toronto. And if your regulators can't even approve a closed end bitcoin fund it's really tough for us to take them seriously that they're trying to encourage if the Ontario Securities Commission is waiting for the S.E.C. to approve an ETF in the United States they will have lost another opportunity to be a leader and to attract business to Toronto. Yeah, the S.E.C. says it's not about bitcoin it has to do with more the mechanics of how an ETF works a closed end fund with our partners. Gemini and Coinbase and Xapo and Silver Gate Banks and you know we have by far we believe the safest opportunity for Canadian investors to invest in Bitcoin. And when we take a look at something like Quadriga CSX you know where they can trace 26 million of the two hundred some odd million that disappeared how they can say with a straight face that Canada doesn't need a regulated fund is beyond me. Yes, Canada needs a regulated fund. Their job is to protect investors and understand. Now it doesn't matter in the price of bitcoin goes up or down as long as the structure is safe. And isn't going to get hacked and isn't going to get stolen and isn't going to you know be perpetrated by fraud or anything along those lines. And that's why we have these regulated managers and these rules, and you know if you can put gold in a closed end fund you certainly can put Bitcoin in the closed end fund.

Manseeb Khan: I absolutely agree with you And it goes by the circles back to what we talked about a little bit before of This is one of the many things that's going to help kind of close the gap of having all those amazing day traders kind of switch over and also switch to crypto and then that's just going to help with the mainstream adoption that we've been pretty much foaming at the mouth for years now.

Frederick T. Pye: Well if you take a look at all the great development being done out of Toronto or Montreal or for that matter and Vancouver, I wouldn't want to leave them out and Calgary. Yeah you know there's you know there's great exchanges, there great wallet systems, there are great custody platforms these people are developing. They're developing an infrastructure which is an OTC trading desk. But where's the billion dollar an asset manager behind everything that's the customer. We haven't got one. Right now, we want to be the customer. We want to be running institutional money here in Canada. And you know those top 10 hedge funds in the US have gone through Canada to all our institutions they do roadshows and take all the money south of the border. It's absolutely absurd that we can't manage that money here in Canada. Yeah. You know if we had institutional support through an asset manager or Canadian custody solutions you know we'd be running three or four billion dollars of crypto in Canada and have assets to be able to move through the ecosystem in Canada. So, it all starts off in a very simple. you know a very simple place. You just start off with one fund it goes into two funds it goes into three managers all of a sudden will have an AGF and Templeton or Mackenzie or any of these great companies you know managing crypto. But let somebody like us our chairman is Howard Atkinson who was you know former head of Horizon ETF you know  he was really one of the pioneers of ETF's in Canada. And you know him, and I work very closely with these regulators to say look you allowed us to list gold you allowed us to do ETF is actually created the first long short mutual fund in Canada back in 2000. 2000. You know it's people like us and try to do something and move they move the line they you know we're now going past our third year almost our fourth year and four and half million dollars to try and make this thing work. And so, it's an absolute killer for our small cap companies or for startup companies to try and do this. There is no reduction a regulatory burden by any stretch of the imagination.

Manseeb Khan:  I mean unfortunately this has been a pretty big theme of the podcast. Canada has been very traditionally conservative and Canada is just kind of waiting like you said they're just waiting for our brethren in the States just saying what are they going to do? what are the regulations kind of doing and not really giving an actual shot because there's such amazing talent here in Canada. I like you fired off quite a few names and quite a few amazing companies that are doing great work here the fact that they if we kind of keep them if we keep going the way that we're going now they're not going to feel secure in their own country to create a company. They're just going to go off to god knows where they can go to Malta and just kind of create the whole thing, they just start scratch from that right. So, it's starting to get pretty concerning when it comes in the shoes of these companies.

Frederick T. Pye: Yeah, we would have more success if we had set up even in New York Obviously there's bitcoin products available over the counter in the United States with GBTC, so Canadians are already buying it in their brokerage accounts. You know there's a bunch of RTO's from Ether capital to the others that that are all out there but you know the reality is people want something that's come in the front door that's regulated that is plain and simple English you know what you're buying when you when you buy it and you know that the there is a trusted party behind it and it doesn't matter whether you're a you know a to the moon Bitcoin Bull it is completely an uncorrelated asset class the movement you know with the trade problems in the United States right now with China I believe it's definitely the Chinese that are you know if you're a 30 year old in China you're moving your R and B into bitcoin because you're down 10 percent and you're you know you don't want to hold the US dollars so you're definitely buying Bitcoin and what does that do. Puts 50 percent premium on Bitcoin right off the bat.

Manseeb Khan: So yeah exactly you did touch a little on the fact that you guys are right now you guys can only operate with accredited investors the entire pull when it comes to crypto is the. Anybody and everybody you can invest into it and hopefully when it comes later down the line that and that principle still stays the same. That pretty much accredited investors and just regular investors are on the same playing field. How do you see that happening? How do you how do you see that coming into fruition.

Frederick T. Pye: Well you know there's a lot of things that have to happen a closed end Bitcoin Fund is a proxy. Or like we would own let's say we do a 10 million dollar offering there's 10 million dollars a Bitcoin we buy it and then we list that pool on the Toronto Stock Exchange so we can now buy that pool as a security. So from your discount brokerage account you can buy it in your RSP and your TFSA and it will reflect Bitcoin one for one and basically you know if bitcoin trading at seven thousand dollars the price of our fund is going to be seventy dollars so it will be a one for one out of one hundred. So, people will know what they're buying. They're buying it for thirty-two hundred dollars with their money at ten thousand So yeah. It'll be quite clear for them what they're paying for their Bitcoin. We hope to do the same with ether or any of the top 10 assets. But one thing I didn't mention is Vaneck of New York a 50-billion-dollar asset management. They own a set of series of indexes called the MVIs index is MVIS Gabor Gurbacs runs a bunch of that operation. Vaneck owns 10 percent of 3iQ. They're so convinced that we're going to win here that they've put their money behind us to help us support us and help us fight this this battle. But certainly, the minute that ETF and indexes are crypto indexes are allowed we can go to the Investor Index and we can create a dozen indexes so top 10 top 5 top 10, top 10 out of 100 , top 10 small cap top 10 large cap. We can create and again also active portfolios so we can create a whole series of products. We just have to get that first product done and then the doors will open. You know it's just sad to see that Bitcoin's had to go from three thousand three hundred to an eight thousand. The general public gets access to it. And the reality is when see are our clients are going to be stockbrokers as financial advisors. It's the advisor that understands tech. It's the advisor that understands the Internet. You know it's I watch Kevin O'Leary on the TV yesterday. He clearly has no concept of what Bitcoin is or their future or are doing and you know what. We can let those people be you know have their opinions and we're happy to let them short us all the time as much as they want on it because we'll take all their money. But definitely you know there is a growing part of the population that wants easy access through a registered or licensed investment account and that's really what we're trying to do for everyone.

Manseeb Khan: Yeah like you said when you have the first product up and out of the door then it's about to be floodgates right. Yeah right. Awesome. So, Fred with that I mean is there any last-minute tidbits you want to give us before we wrap this up.

Frederick T. Pye: No I think as I said to keep if you can do two things and tell your investment advisors you'd like to buy our funds  or get them on the platforms because we now have to work with all the brokerage firms and the banks to allow our funds on their platforms but certainly keep an eye out for 3iQ work with the OSC. And when we win then you'll see us on TV you'll see us in all the newspapers. But right now, it's funny the journalists in Canada don't follow it like they do in the United States every time. Hester Peirce or one of the people in the US say something it's covered by all the press. You know we've kind of been under the radar but it's about to go very public and kudos to you for being one of the first to bring us on.

Manseeb Khan: Yeah. No, I'm super excited to have you on and I'm excited to keep having you guys on and just pretty much rallying behind bitcoin with you guys.

Frederick T. Pye: Good. Well happy to be here.

Manseeb Khan: Yeah for sure. Fred thank you so much for sitting down with me today. And we'll be the best way for audience members to connect with you and or some of the amazing team you have behind 3iQ.

Frederick T. Pye: You will definitely go to the 3IQ.CA. We actually run a weekly blog which is the five coolest things that happen in crypto in Canada. Nice you send us a link we'll have this show. There's so linked on our Sunday or Monday blog that comes out and this will clearly be one of the coolest things that happen in crypto this week.

Manseeb Khan: So awesome. I'm super excited to make it on your blog. So.

Frederick T. Pye: Yeah go to 3iq.ca and surf around and take a look at what we're doing.

Manseeb Khan: Awesome.

Outro : you've been listening to fintech Fridays brought to you by NCFA and partners. Tune in weekly for the latest fintech Friday podcast by subscribing to this channel. The National crowdfunding and FinTech Association of Canada is a non-profit actively engaged with social and investment fintech sectors around the globe and provide education research industry stewardship services and networking opportunities to thousands of members and subscribers. For more information please visit and see if a Canada dot org. Oh yea.

 

End of Podcast

 

Subscribe and Listen to more Fintech Fridays podcasts here

Join NCFA's weekly Podcast series 'FINTECH FRIDAYS' where we sit down with the incredible people in the Fintech community and talk about leading fintech products innovations developments and challenges!

Interested in getting involved as a partner or participant? info@ncfacanada.org

 


NCFA Jan 2018 resize - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. PyeFF Logo 400 v3 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pyecommunity social impact - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
NCFA Newsletter subscribe600 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye

FFCON20 Homepage Banner 600 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye

AS/COA | Luisa Horwitz | February 19, 2020 In a region where a large portion of the population is underbanked, fintech offers an innovative solution for Latin America, paving the way for wider financial development, competition, and inclusion in the region. In the case of Argentina, fintech startups are sprouting and spreading fast. Pierpaolo Barbieri, founder of the startup Ualá, talked with AS/COA Online’s Luisa Horwitz about what motivated him to make the financial system more accessible in Argentina, a country where more than half of people have never had access to a non-cash payment method. “What we try to do is democratize access to financial services,” says Barbieri, who in this episode also covers the generational divide when it comes to fintech, as well as what the sector looks like across Latin America. “We don’t want to change the system from within; what we want is a new system.”  Continue to the full article --> here See Fintech Friday Podcast Episodes The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners ...
Read More
Fintech in argentina - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
UK FCA | Feb 21, 2020 This analysis also contributes to the decisions we make affecting consumers, market integrity and competition. Drivers of change The first chapter describes the common themes across sectors with a focus on those themes that are having the greatest impact on the sectors we regulate. And in the light of EU withdrawal and its impact on financial services markets, we give an overview of our position in the current international context. The 7 sectors The remaining chapters cover all the markets we regulate: retail banking and payments retail lending general insurance and protection pensions savings and retirement income retail investments investment management wholesale financial markets Continue to the full article --> here Download the 86 page PDF Report - Sector Views (Key Areas of Harm Identified) The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, ...
Read More
UK Fintech sector views - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
TransUnion Canada | Release | Feb 24, 2020 New TransUnion study considers common myths around the profile of FinTech borrowers in Canada FinTechs are not just attracting younger Canadians: 46% of FinTech borrowers are over the age of 40 Short-term loans are not the primary focus for FinTechs: 88% of FinTech loan terms are between 13-60 months FinTechs are not just catering to 'underbanked': 51% of FinTech consumers have 3 or more existing credit products TORONTO, Feb. 24, 2020 /CNW/ - A new study from TransUnion explores the evolving trends around the FinTech lender landscape in Canada. The research study analyzed over 21 million non-mortgage credit products originated in Canada from Q1 2017 to Q2 2018. The study's findings reveal key insights that appear to debunk commonly held beliefs around the profile of FinTech borrowers in Canada, as well as the ways that FinTech lenders are employing and embracing different credit strategies compared to some of the more traditional lenders. See:  Robocop vs. Terminator in Fintech; Comparing DeFi originations to Digital Lenders in the early years The study defined FinTech lenders as those who rely on advanced computer algorithms or other technology as their primary platform to enable, support or ...
Read More
transunion fintech report on lending trends - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
Forbes | Michael del Castillo | Feb 19, 2020 Credit card giant Visa has granted its principal membership to a cryptocurrency company for the first time. Officially awarded to cryptocurrency exchange Coinbase in December, but not revealed to the public until today, the membership cuts out a crucial, and expensive middleman from the process of issuing a debit card that lets users spend their own bitcoin, ether and XRP anywhere Visa is accepted. Perhaps even more importantly though, the principal membership makes Coinbase the first cryptocurrency company with the power to issue debit cards for others, including other cryptocurrency companies and more traditional firms alike. Visa confirmed it granted Coinbase the principal membership, clarifying that the company itself won’t actually accept cryptocurrency when the project goes live later this year. See:  Visa R&D Arm Develops a Blockchain System That Could Replace Financial Data Aggregators While Coinbase says it’s not planning on issuing cards to others anytime soon, the principal membership status marks a potentially important new revenue stream for the company, which Forbes estimates saw a 40% decline in earnings last year. By simplifying the process of spending cryptocurrency anywhere Visa is accepted, the membership also lays the foundation for ...
Read More
Coinbase crypto visa payments - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
Forbes | Ron Shevlin | Feb 21, 2020 LendingClub, one of the nation’s first peer-to-peer lenders (oops! I mean, “marketplace” lenders—real ”peer to peer” lending lasted all of about a month), announced it plans to acquire Radius Bank, a relatively small Boston-based bank, unknown to most people outside of the industry (and within, for that matter). The press release announcing the pending deal contained the usual platitudes from the acquiring CEO: “This is a transformational transaction that allows us to reimagine banking in a way that is free from legacy practices and systems. We will create a category-defining experience for our members that will dramatically enhance the resilience and earnings trajectory of our business.” Despite the buzzword-laden proclamation, this acquisition makes a lot of sense for both parties for reasons that go beyond what many observers have reported on. The Short-Term Benefits Aren’t About Radius Bank Much of the discussion about the deal has focused on the obvious and shorter-term benefits of the acquisition, including a more stable source of funding and a $40 million reduction in bank fees and funding costs, both of which will help boost the spread Lending Club earns on the loans it keeps on its ...
Read More
LendingClub banner  - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
Pymnts | February 18, 2020 Online bank N26‘s decision to exit the U.K. has customers feeling left behind, CNBC reported. The Berlin-based digital bank said it would not be able to operate in the country anymore in the wake of Brexit, as it will no longer have a license to do business there. The startup will shutter all of its U.K. locations on April 15. N26 made its entry into the U.K. in October of 2018 — more than two years after the U.K. made its decision to leave the European Union, but six months before Brexit was officially planned. However, the fact that N26 used Brexit in its reasoning to leave the U.K. hasn’t sat well with some. One customer in London told CNBC that he was “outraged” that the company had used Brexit as an excuse, calling it “fake news.” He said N26 needed “an excuse” for investors, and had found in Brexit a convenient scapegoat so that it wasn’t N26’s own failure. Others said they were disappointed in the closure, enjoying the extra bonuses that come with accounts. See:  Majority of London FinTechs not prepared for no-deal Brexit N26 is one among a new breed of branchless ...
Read More
N26 and Brexit - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
TechTalks | Andrey Sergeenkov | Feb 12, 2020 As 2018 drew to a close, crypto skeptics were ready to write obituaries after the devastating bear market that year. Talk of blockchain and cryptocurrency demise was rife among seasoned analysts. Just over twelve months later, the industry has shown remarkable resilience to rebound back. Regulators are a segment of stakeholders who seem to be appreciating that crypto is here to stay, with Federal agencies in the US and Chinese authorities praising the potential of this technology in their respective countries’ digital future. Blockchain technology has gained independent credibility over and above its application in cryptocurrency. The opportunities are endless as the emerging enterprise sector continues to draw plaudits. So far, this technology has grown in spite of regulatory infrastructure rather than because of it. A suitable regulatory climate is essential for widespread adoption. See:  The Decade in Blockchain — 2010 to 2020 in Review This is how Jason Lee, Vice President of NEM Foundation, describes the industry’s evolution: “2017 was the year of the blockchain craze. In 2018, we hit the brakes towards the end of the year. For 2019 and the start of 2020, Don Tapscott at the World Economic ...
Read More
blockchains - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
Betakit | Isabelle Kirkwood | Feb 10, 2020 PwC Canada and CB Insights have released the MoneyTree report on Canadian investment trends for the second half and full year of 2019 (all figures in USD). “Increased competition for funding from global investors has created a healthy funding environment for Canadian startups.” Last year saw Canadian venture capital (VC) funding rise to a record-setting $4.1 billion. Although Canadian funding experienced an 11 percent decline in deal count last year, the report tracked a 16 percent increase in year-over-year funding. Some massive rounds from last year were not included in this year’s report, including Verafin’s round, as the company did not disclose the debt and equity break out, and Sonder’s $210 million raise as the company is now headquartered in the United States. A strong year for AI, FinTech, cybersecurity Artificial intelligence companies saw increased investor attention in 2019, investment in Canadian AI companies more than doubled in the second half of 2019. Last year’s funding to Canadian AI companies saw a 49 percent year-over-year increase in 2019 to $658 million with deal count reaching a new record at 57 deals. See:  The paradox of 2020 VC is that the largest funds ...
Read More
funding by region 2019 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
Forbes | Billy Bambrough | Feb 18, 2020 Samsung, the South Korean technology giant and creator of the Galaxy smartphone range, could soon become one of the biggest drivers of bitcoin, crypto and blockchain adoption. While bitcoin traders and investors are focused on the upcoming bitcoin halving, a looming U.S. bitcoin crackdown, and rocky crypto trading volume, Samsung is putting the power of bitcoin, crypto and blockchain in people's hands. Last week, Samsung, which makes up 19% of global smartphone sales and last year sold almost 300 million phones according to data site Statista, unveiled it latest Galaxy smartphone range with its new flagships the S20, S20+ and S20 Ultra models. These new 5G enabled smartphones build on the Galaxy S10 ranges' bitcoin, cryptocurrency and blockchain support, which last year was revealed to boast a built-in bitcoin and cryptocurrency wallet. "We created a secure processor dedicated to protecting your PIN, password, pattern, and Blockchain Private Key," Samsung wrote on its website, announcing the new S20 Galaxy phones. "Combined with the Knox platform, security is infused into every part of your phone, from hardware to software. So private data stays private." Samsung's so-called Blockchain Keystore was introduced last year, initially with ...
Read More
Samsung - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye
Bank Innovation | Rick Morgan | Jan 22, 2020 HSBC is improving payments for its business clients through a suite of tools launched last week called Treasury APIs, which are designed to speed up payments for small businesses and large corporate clients alike.  HSBC’s Treasury APIs embed payment capabilities into other workflows. According to the bank, this allows treasurers to make payments from their own workstations without logging into a proprietary bank platform. Clients receive confirmation that a payment request has been received and can track payments from their accounts to recipients. Nadya Hijazi, head of digital, global liquidity and cash management at HSBC, said clients using the tool include e-commerce platforms, treasury teams and mutual fund teams.  The new products let HSBC business clients pay suppliers more quickly; Hijazi said payments that used to take anywhere from one or two days in the past now take about 10 or 20 seconds.  HSBC, which is headquartered in London, has $2.7 trillion in assets. Treasury APIs are now available in 27 markets throughout Asia, Europe, the Middle East and the Americas. The bank piloted the tools in India last summer.  See:  HSBC Canada Breaks from Big Six Banks in Call to Encourage Fintechs In addition to paying suppliers, HSBC business customers can also issue ...
Read More
bank innovation - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye

 

share save 171 16 - Fintech Fridays Episode 32:  Rallying behind Bitcoin with Frederick T. Pye