As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap compiled by The Fly.
COINBASE TO ACQUIRE TAGOMI: In a Wednesday blog post, crypto exchange Coinbase announced it would acquire institutional crypto brokerage Tagomi. The company said, “The addition of Tagomi will round out our product suite for the fast-growing institutional trading market. It will allow us to offer custody, professional trading features, and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets…We’re proud to build the foundation for the next wave of crypto investors by bringing onboard the first electronic prime brokerage in crypto. Even in a time of uncertainty, we view now more than ever as the time to push forward our mission of building the crypto-economy. We recognize that the journey is only just beginning, but we’re excited to be builders, and we welcome Tagomi to our mission. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year.”
SAMSUNG TEAMS WITH WINKLEVOSS EXCHANGE: Gemini Trust Co., the crypto venture led by the Winklevoss twins, has teamed up with Samsung (SSNLF) to integrate with the company’s blockchain wallet. In a Thursday post, Gemini CEO Tyler Winklevoss said, “We are excited to announce that Gemini is partnering with Samsung Blockchain to power the Samsung Blockchain Wallet. This integration will allow Samsung Blockchain Wallet users to connect to the Gemini mobile app to buy, sell, and trade crypto. Gemini is the first U.S. crypto exchange and custodian to partner with Samsung Blockchain. This integration will help bring crypto to the fingertips of Samsung Blockchain Wallet users in the United States and Canada.”
GOLDMAN SACHS SAYS CRYPTO ‘NOT AN ASSET CLASS’: Goldman Sachs (GS) released a slide deck on Wednesday prior to an investor call, which included a review of bitcoin and other cryptocurrencies. “Cryptocurrencies including bitcoin are not an asset class,” Goldman Sachs’ Investment Strategy Group wrote, adding that virtual currencies don’t generate cash flow likes bonds or earnings through exposure to global economic growth. “We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” the group wrote. “We also believe that while hedge funds may find trading cryptocurrencies appealing because of their high volatility, that allure does not constitute a viable investment rationale.”
JPMORGAN TO SETTLE CRYPTO CLASS ACTION: JPMorgan (JPM) will shell out $3.5M to settle a class action suit over its 2018 decision to start treating crypto purchases with Chase credit cards as cash advance, which lead to higher fees, Reuters’ Brendan Pierson reported Wednesday. The bank is not admitting any wrongdoing and plaintiffs said the settlement will result in class members receiving roughly 95% of the fees they were unlawfully charged.
PARATEUM GRANTED LISTING EXTENSION: Pareteum (TEUM) announced Friday that on May 27, the company received a letter from the Office of General Counsel of The Nasdaq Stock Market informing the company that the Nasdaq Hearings Panel has granted the company's stay request to continue to be eligible to trade on the Nasdaq Capital Market, pending the issuance of a formal decision on behalf of the Panel following the hearing.
CRYPTO STOCK PLAYS: Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia (NVDA) in select research. Overstock (OSTK), DPW Holdings (DPW), Kodak (KODK), Ideanomics (IDEX), Riot Blockchain (RIOT), Pareteum and Social Reality (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme.
PRICE ACTION: As of time of writing, bitcoin rose roughly 3.6% this week to $9,432 in U.S. dollars, according to TradeBlock.
Bitcoin
+ (+0.00%)
Bitcoin
+ (+0.00%)
Samsung
+ (+0.00%)
Goldman Sachs
+1.16 (+0.58%)
JPMorgan
-1.25 (-1.25%)
Pareteum
+0.0118 (+2.66%)
AMD
+0.94 (+1.82%)
Nvidia
+5.87 (+1.73%)
OSTK
+
Ault Global Holdings
+0.02 (+1.87%)
Eastman Kodak
-0.05 (-1.95%)
Ideanomics
-0.0158 (-3.89%)
Riot Platforms
-0.04 (-1.81%)
Srax
+ (+0.00%)