Tag: Brokerage

Fujitsu Files Trademark for Crypto Brokerage Services

by Blockchain News

Japanese multinational tech company Fujitsu has filed a trademark application with the United States Patent and Trademark Office (USPTO) for a new branding that intends to offer a range of financial services, including cryptocurrency brokerage services. According to the official document filed on March 16, the proposed mark consists of the stylized word “FUJITSU” with a sideways s-shaped swirl over the “J” and “I.” The new branding would support various financial facilities, such as accepting deposits, financing loans, financial management, and the exchange of crypto assets.

Fujitsu has been increasingly interested in the Web3 technology space, with the launch of its Web3 acceleration platform in February 2023. The platform aims to support startups and partner companies in creating a diverse ecosystem of Web3 applications that span a range of use cases, including digital content rights management, business transactions, contracts, and processes. The move demonstrates Fujitsu’s commitment to driving innovation in the emerging Web3 industry.

The company’s decision to offer cryptocurrency brokerage services comes as financial regulators in Japan call for stricter banking rules for the crypto sector. In January 2023, the Deputy Director General of the Financial Services Agency’s Strategy Development and Management Bureau, Mamoru Yanase, urged global regulators to introduce tighter banking rules to improve the crypto industry’s governance and internal controls. He acknowledged that the issue wasn’t with crypto technology itself but with the “loose governance, lax internal controls, and the absence of regulation and supervision” that led to recent scandals in the sector.

Fujitsu’s move into the crypto brokerage services market signals its recognition of the growing importance of cryptocurrencies and blockchain technology in the financial industry. The new branding could help Fujitsu establish itself as a leading provider of crypto-related financial services, leveraging its extensive expertise and resources in the technology sector.

In conclusion, Fujitsu’s trademark application for cryptocurrency brokerage services and other financial facilities demonstrates the company’s commitment to the emerging Web3 industry and its growing interest in cryptocurrencies. The move could also help Fujitsu establish itself as a leading provider of crypto-related financial services and position itself at the forefront of innovation in the financial technology sector.

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Voyager Digital Suspends Crypto Trading, Deposits, And Withdrawals

by Blockchain News

Voyager Digital, a cryptocurrency brokerage firm, announced last Friday that it has suspended all customer trading, deposits, withdrawals and loyalty rewards.

“This was a tremendously difficult decision, but we believe it is the right one given current market conditions. This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time,” said Stephen Ehrlich, CEO of lending firm Voyager Digital.

Voyager has been facing financial challenges that have adversely affected its operations. On June 22, the lending firm revealed that it had huge exposure to the crypto hedge fund firm Three Arrows Capital (3AC). Last week, Voyager issued a notice of default to the struggling crypto hedge fund for failure to repay its loans.

The loans totalled about $665 million, consisting of 15,250 BTC ($294 million) and $350 million in USDC. Voyager said that it had requested Three Arrows Capital to repay $25 million in USDC by June 24, and repay the entire balance of USDC and BTC by June 27.

Since 3AC defaulted, Voyager recently disclosed plans to pursue all means to recover its funds from the crypto hedge fund firm, including through a court-ordered liquidation process in the British Virgin Islands.

Voyager recently secured over $500 million loans in form of $200 million in USDC and $294 million worth 15,000 BTC from Alameda Research, a quantitative trading firm owned by FTX boss Sam Bankman-Fried, to mitigate its $665 million exposure and weather the crypto winter.

So far, Voyager has received access to the $75 million part of the FTX loan, but it seems that was not enough to keep its business operating as usual. The firm looks forward to accessing more funds whenever available. 

The Fragile Crypto Market

The ongoing crash of cryptocurrencies has left several market players in the industry facing financial difficulties.

Bitcoin and altcoins have plunged hard as the market experiences new realities triggered by interest rate hikes by the Federal Reserve and the collapse of TerraUSD stablecoin and its sister cryptocurrency Luna.

On June 12, crypto lender Celsius suspended all account withdrawals, citing “extreme market conditions.” Reports showed that Celsius invested hundreds of millions of dollars in the illiquid token derivative called Staked ether, or stETH, another controversial cryptocurrency that caused damage in the digital asset market, after the fall of TerraUSD.

A prominent crypto lending firm BlockFi also has been facing financial struggles as it had significant exposure to Three Arrows Capital. The crypto lender recently announced massive job cuts and its valuation dramatically reduced from $5 billion to $1 billion. Last week, BlockFi secured a $250 million revolving line of credit from FTX to bail out its business.

Image source: Shutterstock

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Robinhood share price down 70% from August high

by Cointelegraph

As Robinhood struggles with its declining share price, could ramping up its cryptocurrency offerings help boost the company’s outlook?

Robinhood is a financial services company that also acts as a retail trading platform for ordinary users. It’s known for meme stocks and currently offers seven cryptocurrencies for trading.

Since Aug. 4, Robinhood (HOOD) has fallen nearly 70% from its ATH of $70.39 to $25.94, and it’s been below the $38 IPO price for weeks. Several factors are contributing to the fall, such as a drop in crypto and meme stocks day trading as the pandemic era comes to an end and people return to their offices to work.

Robinhood enjoyed big gains in Q2 2021 when Dogecoin (DOGE) trading accounted for 41% of Robinhood’s total revenue, and 62% of the $233 million generated by cryptocurrency trading.

However, cryptocurrency trading fell 79% in Q3 and only accounted for 19% of its total revenue.

Chris MacDonald, a contributor to TipRanks, still believes that cryptocurrency iks the key to Robinhood’s long term success.

“Robinhood appears to continue to ramp up its efforts to become the most-utilized exchange out there. Those who think crypto is real and here for the long haul may want to take a close look at this company right now.”

There is also a big demand for Robinhood to launch its wallet feature, which currently has over 1.6 million users on the waitlist. That’s about 7% of its total user base as of the end of Q3 2021. While some are planning to trade more with the wallet others may simply want to withdraw their existing tokens from Robinhood’s platform.

The brokerage has not said anything definitive about listing Shiba Inu (SHIB). There’s a big push on from the community including a petition to list SHIB on Robinhood that currently has 541,000 signatures. Competitor Kraken this week launched SHIB trading which was followed by a 30% increase in the price. Such price action may help convince Robinhood of the merits of listing the memecoin given the potential to repeat the growth it experienced from the DOGE trading frenzy in Q2.

Related: Robinhood exec says proposal for a single digital asset regulator is stupid

Despite the current price doldrums Wall Street appears to view HOOD favorably for now. Nasdaq has indicated an average price target of $45 from 13 analysts, which represents 73.3% upside potential.