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MassMutual Goes Wild With $100M in BTC

MassMutual Goes Wild With $100M in BTC

     Back in the institutional Bitcoin game, Massachusetts is jumping into a 100 million dollar investment in Bitcoin with 5 million dollars of equity interest in NYDIG. The twin plays – both revelated in the press release on Thursday - give MassMutual direct exposure to the price changes of the cryptocurrency and signal that other large fish are going to follow.

    NYDIG, with 2.3billion USD under management, is one of the fastest-growing institutional crypto shops. The $100 million was bought from MassMutual. MassMutual told the Wall Street Journal that he sought to make "measured yet meaningful" exposure to an increasingly digital world, without explaining why it saw Bitcoin as a fair investment.

    The $100 million BTC wager from MassMutual is barely a drop in the $235 billion buckets on its total investment portfolio. Coming from a 169-year-old risk management insurance firm, Bitcoin's view of mainstream investors could be affected to a great degree. 

    This story has been played all year long. This is the last institutional stalwart that Bitcoin enters in this year's march into the mainstream. After the pandemic came into existence, the blockchain is being used by publicly traded firms and controlled fund managers at a rate not seen elsewhere throughout their history. 

    But MassMutual is moving to provide infrastructure-enabling institutional acceptance with its dual investment in NYDIG, the business that made this purchase easier. In its institutional class courtship, NYDIG was direct. The crypto banking company, Patrick Sells, hired Wednesday to lead its campaigns for crypto services.

    It raises tens of millions of dollars regularly for crypto funds, including $100 million from the Thanksgiving bitcoin fund. This gigantic vehicle, mentioned by CoinDesk at the time, had only one investor. NYIDG refused to comment on the fund's investments.

Warming The Sector

    From banking cryptocurrency companies shunned by most financial institutions, Patrick Sells pitches crypto-related services to banks that may suddenly warm the sector. Sells is joining New York Digital Investments Group (NYDIG) as the Head of bank solutions and was formerly Chief Innovation Officer at Quontic Bank based in New York, the enterprise announced on Wednesday. 

    The sales will be responsible, through a white-labeled offering, for developing the custody, implementation, financing, and anti-money laundering and know-how of your banks' compliance services.

    In other words, NYDIG stands ready to do its entire work behind the scenes, if the banks want to give their consumers crypto trading and custody. And such banks could be there in the summer, judging from some letters of public comment filed by US institutions in reply to a request for input made by a national regulator. 

    NYDIG is one of only 26 companies to receive the New York State RRL, which is best known for the management of crypto-funds of many millions of dollars and offers institutional clients prime brokers and custody services. Earlier this month, it raised $150 million for twin crypto funds. It is a Stone Ridge unit, an alternative $10 billion asset manager for customers.

    Quontic is a small, $1.4 billion in assets, about 0.044% of JPMorgan's size. Sales and his former boss, Steven Schnall, Quontic CEO, provided cryptocurrency firms with hard-to-go bank accounts and gave Quontic workers cryptocurrency training by giving every staff member $20 in bitcoin. 

    In 2020, Sells won the Digital Banker of the Year award from American Banker Magazine, showing he collaborated with Schnall on a crypto-linked filing product. 

    While a handful of banking companies have served the cryptographic industry in the past, a range of new banking options from new chartered Wyoming community-based banks built to manage digital assets to BitPay's crypto payment companies have been developed to become a US bank.

BitPay Files Become Federally Regulated U.S Bank

    BitPay applied to the Office of the Currency Comptroller (OCC) to organize a federally controlled bank called the BitPay National Trust Bank with its headquarters in Georgia, according to a Dec. 8 legal notice published by Atlanta Journal-Constitution. The Block announced the news for the first time.

The submission calls to the OCC Licensing Director a comment period of 30 days. 

bitpay BTC

    Announcing earlier in this year that OCC Acting Comptroller Brian Brooks will set up a licensing system for Fintech start-ups to simplify their operations within the USA, including crypto-businesses. Currently, crypto exchange companies and other digital payment companies are normally required in every U.S. Country and territory where they plan to operate to obtain money transmitter licenses.

    The total investment earned for issued shares in the national bank will be less than $12 million, with one hundred and twenty million shares due, according to the BitPay submission. Companies like BitPay could solve this state-by-state regime by becoming a national bank.

The Reversal

    The acting contractor said his department was able to start processing applications in September. More recently, he told CNBC that crypto space might predict that the year would see further good news.

    His decision however prompted pushback from banks and democratic legislators who consider his emphasis on cryptography to be unreasonable and de-regulatory. The United States this week in a letter to incoming President Joe Biden, Rep. Maxine Waters (D-Calif.) who chairs the Committee for Financial Services at the House, asked Biden to overturn certain decisions taken by the heads of his predecessor's agencies. 

    Brooks will also be in the OCC for five years. President Donald Trump last month nominated a General Advisor to the former Coinbase, but a confirmatory vote remains to be reported. Biden or his named Secretary of the Treasury, Janet Yellen, will announce another name if Brooks is not confirmed. 

    Rep. Rashida Tlaib (D-Mich.) has also implemented the STABLE An act requiring all issuers of 'stablecoins' to secure charters. In an emailed comment, BitPay confirmed the transfer. 

    "Our operations as a national trust bank will comply with stringent security and health standards that will assure our customers that our services remain the best in the class and enable us to follow a uniform regulatory framework," the statement said.

Yulina Firmansyah
Yulina Firmansyah Hi, I am a wife who really loves crypto and blockchain technology, I am a writer for this blog.

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