BitMex Insurance Fund Tags ATH, Binance and Deribit Inject Millions

BitMex Insurance Fund Tags ATH, Binance and Deribit Inject Millions

Despite the insurance funds of Deribit and Binance falling by more than 50% in the crash, BitMex’s insurance fund is posting record highs

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The March 13 crypto market meltdown ravaged cryptocurrency companies across the industry, sparking a MakerDAO debt crisis and causing millions to be deployed from the insurance funds of exchanges Binance and Deribit.

In spite of the widespread carnage, the insurance fund of leading derivatives exchange, BitMex, only took two days to break back into new all-time highs.

BitMex insurance fund posts new all-time high

Despite going offline for 45 minutes due to a “hardware issue” late March 13, BitMex appears to have emerged from the recent cryptocurrency market massacre stronger than ever.

The crash saw BitMex only deployed 1,627 to deleverage positions during the downturn, slimming the exchange’s insurance fund from roughly 35,500 Bitcoins (BTC) on March 11 to 33,880 approximately 24 hours later.

On March 13, BitMex’s insurance fund posted a record high of nearly 36,500 BTC, indicating that no meaningful damage had been sustained by the exchange during the crypto collapse.

The exchange’s insurance fund has since returned to its pre-crash levels, with the fund holding approximately 35,210 BTC as if this writing — equating to roughly 0.17% of Bitcoin’s total supply, and more than 0.19% of the current BTC supply.

BitMex’s insurance fund builds up as liquidations are “executed at a price better than the bankruptcy price” of positions facing margin calls.

Deribit makes emergency injection of 500 BTC to insurance fund

Unlike BitMex, Deribit’s insurance fund was nearly vaporized overnight as a result of the crash.

In three days, Deribit’s fund fell by 53% from 391 BTC to 183 BTC. This prompted the exchange to prop up the fund by injecting 500 BTC from the company’s personal coffers. On March 13, the exchange tweeted:

“Due to extreme volatility, we’ve seen a significant impact on our BTC insurance fund. In order to prevent socialized losses, we have decided to support the insurance fund and strengthen it by injecting 500 BTC of company funds.”

Binance has also taken steps to pump up its insurance — which fell 51% percent from $12.8 million USDT to 8.2 million in one day.

Since then, Binance has pumped 4.2 million USDT into its fund — which currently holds nearly $10.5 million USDT.


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Despite the insurance funds of Deribit and Binance falling by more than 50% in the crash, BitMex’s insurance fund is posting record highs

China’s Central Bank to Inject $4.7M into Blockchain Trade Platform

China’s Central Bank to Inject $4.7M into Blockchain Trade Platform

China’s blockchain trade platform has facilitated $12.4 billion in transactions between 38 banks and 1,900 firms since 2018

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The People’s Bank of China (PBoC) has secured $4.7 million in funding from China’s central government for its blockchain trade finance platform. The funding will be administered over three years and has been designated for research and development projects.

The blockchain platform was initially revealed by the PBoC in Shenzhen during September 2018. The platform is intended to facilitate transfers and create an untamperable ledger for secure information sharing between businesses and government departments. 

Blockchain drives efficiency savings for Chinese corporate financing

By mid-January, it was estimated that the platform had processed $12.4 billion worth of transactions for the 38 banks and nearly 1,900 firms that have signed up to use the platform. 

Chinese media outlet Xinhua claims that the platform has shortened the time taken to process trade financing from roughly 10 days to just 20 minutes. The costs incurred through corporate financing executed using that platform has also reportedly decreased by approximately 6%.

The platform is administered by the PBoC’s Digital Currency Research Lab, the Chinese Academy of Sciences, leading Chinese universities and major local banks.

Blockchain solutions proliferate in China

Blockchain technology has been deployed for an increasing number of applications across Chinese society in recent months.

On March 2, Beijing launched a blockchain-based electronic invoicing system for parking. Beijing’s taxation authority indicated it will progressively roll-out blockchain invoicing across all car parks in the city to promote paperless invoicing, adding that it plans to implement blockchain invoicing across more sectors in the future.

During the first half of February, Xinhua estimated that at least 20 blockchain applications were launched to assist in the Chinese government’s efforts to contain the coronavirus — including managing and tracking health records, medical supplies, and relief efforts.


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China’s blockchain trade platform has facilitated $12.4 billion in transactions between 38 banks and 1,900 firms since 2018

BNP Paribas Venture Arm Among Investors to Inject $16.5M in Fintech Firm Token

BNP Paribas Venture Arm Among Investors to Inject $16.5M in Fintech Firm Token

Fintech firm Token has received a $16.5 million injection from investors including the venture arm of banking giant BNP Paribas

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Fintech firm Token has received a $16.5 million injection from investors including the venture arm of banking giant BNP Paribas, a news release announced on June 18.

The self-described open banking platform says it will use the capital to further develop its TokenOSTM operating system — and “accelerate new ways of innovating payments with digital money and ID solutions.”

According to the company, its ecosystem enables banks, customers and developers to complete transactions securely, instantly and with less friction. Token claims more than 4,000 banks have connected to its platform, with Mastercard recently coming on board as a partner. Steve Kirsch, Token’s founder and CEO, said:

“For banks, establishing an early position in this new hyper-connected market is a competitive advantage; a new wave of independent financial apps and services will soon be available to their customers, so banks need to be clear about their future roles.”

BNP Paribas’ Opera Tech Ventures was involved in the latest funding round, as well as existing investors including Octopus Ventures and EQT Ventures.

Earlier this week, it was confirmed that Italian banks are planning to deploy blockchain technology to improve transparency in transactions between financial institutions starting next year.

On June 13, blockchain software consortium R3 revealed it is developing a blockchain platform in Brazil with three global banks. Last month, more than 50 banks simulated letter of credit transactions using one of the company’s systems.


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Fintech firm Token has received a $16.5 million injection from investors including the venture arm of banking giant BNP Paribas