Private Bank Kleinwort Hambros Launches Blockchain Exchange-Traded Note

Published at: April 8, 2019

Private bank Kleinwort Hambros launched an exchange-traded note (ETN) made up of blockchain-related companies, financial news outlet Finextra reported on April 8.

Kleinwort Hambros is owned by Societe Generale, acting as their private wealth management division in the United Kingdom. Societe Generale itself is a multinational investment bank headquartered in Paris, with total assets of around 1.3 trillion euros ($1.4 trillion) in 2018.

Per the report, the new derivative is available for a minimum investment of £1,000 (equivalent to about $1,300) and has been listed in Luxemburg. The stocks reportedly include 20 companies which are expected to profit from blockchain and distributed ledger technology (DLT) adoption.

More precisely, the companies are expected to earn revenue through the sale of relevant software and services or improve their profit margins with the adoption of decentralized technologies.

The companies that make up the ETN reportedly come from the technology, shipping, oil and gas, custody banking and industrials industries. The press release quotes John Birdwood, portfolio manager at Kleinwort Hambros, as stating that the bank noticed increasing interest on their clients’ part towards blockchain, prompting the development of the product.

Kleinwort Hambros, according to a report released by the company in March 2018, has £16.3 billion of assets (around $21 billion) under management, over a thousand employees, and offices in London, Cambridge, Newbury, Leeds, Edinburgh, Guernsey, Jersey and Gibraltar.

As Cointelegraph reported in January, Ed Tilly, CEO, president and chairman at the Chicago Board Options Exchange, declared that there is a need for Bitcoin (BTC) exchange-traded notes in order for Wall Street institutional investors to join the crypto space.

At the end of March, the United States Securities and Exchange Commission has delayed its decision on a rule change to the Securities Act that would allow the listing of Bitcoin exchange-traded funds (ETF).

Tags
Blockchain
Derivatives
Dlt
Stocks
Banking
Banks
Financial Derivatives
Related Posts
South Korea’s Shinhan Bank Developing a Blockchain Stock Lending System
South Korea’s oldest bank, Shinhan Bank, is developing a distributed ledger technology (DLT)-enabled stock lending platform, local media Econonews reports on Aug. 1. Blockchain-based stock lending Per the report, Shinhan Financial Investment signed an agreement with financial services company Directional to develop a blockchain-based stock lending service on May 28. Personal stock lending is part of a broader development of innovative financial services that are currently being pursued by the company. Not the first Shinhan Blockchain-based Service At the end of May, Shinhan Bank also launched a blockchain-enabled lending platform to boost cost and time efficiencies in the lending process, …
Blockchain / Aug. 3, 2019
After Microstrategy downgrade, analysts recommend smallcap crypto-centric bank
Following a Citi report downgrading business intelligence firm Microstrategy’s stock to a “sell” rating, analysts for popular trading website the Motley Fool have recommended a lesser-known bank stock that also has an emphasis on cryptocurrencies. Last Tuesday, Citi analyst Tyler Radke downgraded Microstrategy (NASDAQ:MSTR) shortly after the firm announced a debt purchase that would bring its Bitcoin holdings up to a nearly $1 billion mark. The report chided the company, which at points has seen share prices more than triple from $92 yearly lows, for its “disproportionate” focus on bolstering its BTC holdings, and said that the current run is …
Blockchain / Dec. 13, 2020
Blockchain Firm Says Banks Need DLT to Manage Identities Better
Blockchain firm HashCash Consultants claims that banks are "chief arbiters" of people's identities, and need blockchain technology to do it better. According to an Aug. 11 announcement, “accurate identification of an individual is central to banking activities which makes them the chief arbiter of people's identities.” Still, the current system is not without its issues: “The existing manual processes make identification time-consuming and susceptible to errors. HashCash aims to streamline the process by helping the partner bank create digital identities for the customers over a decentralized network, where the customer data will be recorded on an immutable ledger, eliminating any …
Blockchain / Aug. 12, 2020
Copper Becomes Latest Crypto Firm to Use Signature Bank's Signet
United Kingdom cryptocurrency custodian Copper announced support for United States dollar transfers through Signature Bank’s Signet blockchain payment platform. According to an announcement on July 20, the integration of Signature Bank’s Signet will allow Copper’s customers to instantly pay and settle transactions in U.S. dollars and other fiat currencies. The integration will “vastly reduce the time and other issues that asset managers face in transferring traditional currencies” between bank accounts and trading environments. Crypto exchanges Bitstamp, Huobi, Kraken, OKCoin and LMAX are already integrated with both Signet and Copper. The collaboration is part of a broader trend Copper CEO Dmitry …
Blockchain / July 21, 2020
Dutch Bank ABN AMRO Launches Blockchain Inventory Tracking Platform ‘Forcefield’
Dutch bank ABN AMRO announced that it is launching a blockchain inventory tracking platform dubbed Forcefield in a press release published on May 17. Per the announcement, the platform is an Internet of Things solution that allows the monitoring of physical trade inventories with sensors and near-field communication chips. Forcefield was developed over the past year as a stand-alone product and became an independent company following a successful proof-of-concept that was conducted with consulting firm Accenture. The bank claims that the system can lead to more secure physical handling processes and a reduction of costs in the management of commodities …
Blockchain / May 20, 2019