Cadence Launches Its Digital Securitization and Investment Platform for Private Credit 816

Cadence

Cadence has launched its investment platform for private credit, leveraging its proprietary digital securitization technology to make these alternative investments available and accessible for its institutional and accredited investors.

Since 2000, private credit has been the fastest growing asset class in private capital markets, achieving a compound annual growth rate of just under 20%. According to The Alternative Investment Management Association (AIMA), by 2020, total global assets under management in private credit is forecast to surpass $1 trillion, with over $414 billion sitting on the sidelines in cash. These figures demonstrate both the remarkable growth of private credit markets and the challenges the industry has faced in meeting investor demand.

Sourcing opportunities to deploy this capital continues to present a tremendous challenge for the buyside community. With 40% of all sourcing coming exclusively from direct relationships, platforms like Cadence help to create a more transparent and efficient capital market that can scale.

As stated by Cadence’s Founder and CEO, Nelson Chu, “The securitization market for private credit has been in desperate need of innovation, especially when it impacts so much of our economy today. Think about the granola bar company that just got their first big purchase order from Whole Foods that they can’t fulfill or the mobile app developer that needs to make payroll while Apple takes 45 days to pay out their earnings from the App Store. Cadence is doing its part to help power the growth of small to medium sized enterprises by providing them market-driven cost efficiencies.”

To date, they’ve issued 10 different securitizations all with varying durations under 9 months during their private beta. The company launched the first-of-its-kind tokenized debt security and also was the first to list their digitized assets on The Bloomberg Terminal.

Cadence closed a fundraising round of $2 million earlier this year led by Recharge Capital, whose portfolio companies include Cadre, Care/Of, dv01, RigUp, and Uala. Institutional investors included Fantail Ventures, Argo Ventures, the venture arm of Argo Group, Coinbase Ventures, and INBlockchain. Strategic angel investors included current and former senior executives from several of the leading banks and asset managers.

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Price Analysis: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Binance Coin 8687

Analysts believe that the rally in Bitcoin might witness a short-term blip but is likely to resume its up-move and reach $9,659 by year’s end. The reason for the rise can be attributed to various positive developments in the crypto field and also to the ongoing trade war between the top two economies of the world, China and the United States. Digital Currency Group founder Barry Silbert believes that Bitcoin is acting like a safe haven, as it has done in the past during Brexit and Grexit.

The current recovery from the lows was backed by strong institutional flows, as indicated by the record volumes on the Bitcoin derivatives exchanges. Along with the different cryptocurrencies, stablecoins are also being sought by traders. According to crypto research firm Diar, the market capitalization of stablecoins has topped $4 billion. Even with all the controversy surrounding it, Tether continues to be the leader with trading volumes in 2019 already exceeding that of the entirety of 2018.

Early backers of EOS are likely to make huge returns on their initial investments if they sell out in the buyback offer announced by Block.one. The seed round in 2017 had valued the company at $40 million, while the buyback offer values the company at $2.3 billion.

BTC/USD

Bitcoin (BTC) continues to be in an uptrend. Both the moving averages are sloping up and the RSI is in positive territory. This suggests that the bulls are in command. However, after a sharp rally, a minor correction or a consolidation is to be expected.

BTC/USD

The bulls are finding it difficult to breakout of the overhead resistance at $8,496.53, but on the downside, the bulls are buying the dips to the 20-day EMA. Until either level is crossed, the BTC/USD pair is likely to remain range bound for the next few days.

Contrary to our assumption, if the pair breaks out and closes (UTC time frame) above the overhead resistance, a rally to $10,000 will be in the cards. However, we do not expect this level to be crossed in a hurry.

On the downside, a break below the 20-day EMA and $6,933.90 support zone can plunge the pair to $5,900. This is an important level to watch on the downside because if it breaks, the trend will turn in favor of the bears. We will wait for a new buy setup to form before recommending a trade in it.

ETH/USD

Ethereum (ETH) has been trading in a tight range of $220–$270 for the past five days. The trend remains bullish as both the moving averages are sloping up and the RSI is close to the overbought zone.

ETH/USD

If the ETH/USD pair breaks out of $270, it can move up to $290.92. Above this level, a rally to the next resistance zone of $300–$322 is probable. The 20-day EMA will act as a strong support on the downside, below which, a dip to the 50-day SMA is likely. The bears have not been able to close (UTC time frame) below the 50-day SMA since breaking above it on February 17. Hence, a dip below this support will indicate weakness.

XRP/USD

The bulls are struggling to sustain Ripple (XRP) above $0.40. This shows profit booking at higher levels. A failure to break out of $0.45 will indicate a loss of momentum. A break below the 20-day EMA can result in a fall to $0.33108. If this support also gives way, the digital currency can slide to $0.27795.

XRP/USD

Conversely, if the XRP/USD pair rebounds off the 20-day EMA, it can rise to $0.45 and if this level is crossed, a new uptrend is likely. The level to watch on the upside is $0.60 with minor resistances at $0.50 and $0.55.

The 20-day EMA is trending up and the RSI is in the positive territory, which suggests that the bulls have a minor advantage. Therefore, traders can hold their long positions with the stops at $0.2750.

BCH/USD

Bitcoin Cash (BCH) turned down from close to $450 for the third time on May 21. The zone between $450 and the resistance line of the channel is likely to act as a stiff resistance. If the bulls scale this resistance zone, a rally to $600 is probable.

BCH/USD

On the other hand, if the bears sink the BCH/USD pair below the 20-day EMA, it can drop to the support line of the channel. A breakdown of the channel will signal weakness. Currently, bulls have the upper hand as both the moving averages are sloping up and the RSI is in the positive zone.

EOS/USD

EOS has made an inside day candlestick pattern for the past two days. This shows indecision between the bulls and the bears. If the bulls reassert their supremacy, a rally to $6.8299 is probable. A breakout of this level can push the price to $9.00.

EOS/USD

Conversely, if the bears sink the EOS/USD pair below $5.78, a drop to the 50-day SMA is likely. If this level also fails to support the pair, it can drop to the critical level of $4.4930. We expect this level to hold. If that happens, the cryptocurrency will remain stuck inside the large range of $4.4930–$6.8299 for the next few days.

LTC/USD

Litecoin (LTC) has been trading close to the breakout level of $91 for the past two days. The small trading range of the past two days shows indecision. If the price bounces off $84.3439, it will again try to move up to $107. Above this level, the next target is $158.91

LTC/USD

On the other hand, if the LTC/USD pair fails to break out of the overhead resistance, it might remain range bound for a few days. The pair will turn negative if the $84.3439–$74.6054 support zone breaks down. Therefore, the stops on the long positions can be kept at $70.

Currently, with both the moving averages trending up and the RSI above 50, the advantage is with the bulls. However, the developing negative divergence on the RSI is a red flag.

BNB/USD

Though Binance Coin (BNB) did not breakout of the resistance line on May 21, it has not given up much ground. Both the moving averages are sloping up and the RSI is in the overbought zone. This shows that the bulls are firmly in the driver’s seat.

BNB/USD

A breakout of the resistance line can propel the BNB/USD pair to $40.2919564. But if the pair reverses direction from the current levels, it can dip to the 20-day EMA, which should provide support. Below this, the next strong support is at the 50-day SMA. A breakdown of this support will signal a deeper correction.

XLM/USD

Stellar (XLM) has turned down from the overhead resistance of $0.147620. It can now fall to the 20-day EMA, which is likely to offer some support. If the digital currency bounces off the 20-day EMA, it will attempt to ascend the overhead resistance once again.

XLM/USD

On the other hand, if the bears sink the XLM/USD pair below the moving averages, it can drop to $0.088542. The 50-day SMA is flat and the 20-day EMA is also flattening out. This points to a consolidation in the next few days.

The trend will turn bullish on a break out and close (UTC time frame) above $0.14861760. The next target to watch on the upside is $0.22466773. We will wait for the price to sustain above $0.14861760 before recommending a trade in it.

ADA/USD

Cardano (ADA) is trying to hold above the moving averages for the past five days. However, failure to rebound from the strong support shows a lack of demand at higher levels. If the bears break below the moving averages, the digital currency will weaken and can decline to the next support at $0.057898.

ADA/USD

Conversely, if the ADA/USD pair bounces off the moving averages, the bulls will again try to break out of the overhead resistance at $0.094256. If successful, it will complete the rounding bottom pattern that has a target objective of $0.161275. Hence, we retain the buy recommendation given in an earlier analysis.

TRX/USD

Tron (TRX) has been consistently rising above $0.02815521 for the past three days but is struggling to hold on to higher levels. The price is stuck at the breakout level. If the bulls succeed in sustaining the digital currency above $0.02815521, it can move up to the next target objective of $0.040. If this level is crossed, the next level to watch on the upside is $0.050. Therefore, traders can keep the stop loss on the long positions at $0.0209.

TRX/USD

Contrary to our expectation, if the TRX/USD pair breaks down of the moving averages, it will lose momentum and can drop to the support at $0.02094452. In such a case, the pair might remain range bound for a few days. The 20-day EMA is marginally sloping up and the RSI is just above 50, which suggests that the bulls have a slight advantage.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

Outstanding Stablecoins, Spot Trading Volumes Hit Record 8661

Stablecoins have hit an all-time high with over $4Bn tokens representing the Greenback now on the blockchain. While Tether dominance remains, new stablecoins that came to market recently have made leapfrogs of progress. And trading volumes have already in less than 5 months beat that of last year’s record with 2019 set to dwarf the now infamous bear market in comparison.


This year to date has seen trading volumes with Tether pairs already exceeding a whopping $1.3 Trillion – $200Mn more than all of last year (see chart 3). Despite the transparency concerns of a now diversified reserve, the dominating market stablecoin has not budged traders from using it as it remains to have the most liquidity and options across cryptocurrency exchanges (Diar, 30 April).

While there is a leering concern of wash trading on unregulated and under-regulated exchanges, current volumes at this magnitude could also indicate a growing difficulty in market manipulation, should it be the case.

|| SLOW AND STEADY WINS A BULL MARKET RACE

Last year’s stablecoin newcomers have not been slouches either. Circle/Coinbase backed USDC has seen its outstanding tokenized version of the US Dollar grow by 41% since the start of the year – north of $100Mn. And trading volumes have finally managed to pick up some speed clocking in a whopping 435% increase (see table, chart 1).

|| GROWING IN TANDEM

TrustToken’s USD, one of the few stablecoin options on the market at the start of last year has seen growth, albeit, smaller than USDC. Still, TUSD has recorded $3.8Bn in trading volume for May, a little over $200Mn than their closest rival. Notably, though, is that TUSD has a higher velocity marking it a favorite by traders as the stablecoin has 30% less in outstanding reserves than Centre’s USDC.

|| BLOCKCHAIN BILLIONS

Major stablecoins now stand north of $4Bn, with more fiat options coming to market, primarily offerings from TrustToken. The company has announced a plethora of new fiat-pegged tokens, but have so far garnered little interest as trading pairs and a forex market does not exist as of yet.

|| BLOCKCHAIN UNUTILIZED

Though numbers impressive, the use case of stablecoins have found little appeal outside of sitting on centralized exchanges. USDC has indeed seen an impressive 540% increase in active addresses on-chain versus the start of the year. And TrustUSD is not very far behind on this metric either. But the absolute maximum addresses using the blockchain have been a mere 5500 at peak on a single day for the two majors outside of Tether.

|| NEW AVENUE PUSH

Last week saw Coinbase make its largest market push yet opening up crypto-to-crypto trading, including USDC, to another 50 countries bringing up the tally to an impressive 103 from 32 just a year ago (Diar, 11 February).

The popular exchange has now invested and built out its own vision of an ‘Open Financial System’ through various avenues from a non-custodial wallet, to supporting major Decentralized Finance (DeFi) companies that have garnered much attention as of late.

And while the experiment still continues as to the long-term stability of these various decentralized applications, the infrastructure is slowly coming together. However, with a focus remaining on distressed economies, the growth and use-case is likely to remain small without developed nations also adopting into the concept.

Stock Exchange Embraces Blockchain Technology 8377

Blockchain technology can help enhance transparency, efficiency and grow investor confidence in Zimbabwe’s fledgling capital markets, experts say.

The technology, which underpins crypto-currencies like bitcoin, is temper-proof. Its decentralised nature allows for financial transactions to be traced throughout the payment process by anyone with a computer or smartphone with internet connection.

These characteristics have meant that blockchain technology is now being adapted for use in several spheres including the supply chain, banking, financial markets and even voting, to curb fraud while improving transparency.

Zimbabwe Stock Exchange (ZSE) chief executive Justin Bgoni told our Harare Bureau that the exchange is open to exploring how it can harness Blockchain technology in the near future although there is still no regulatory clarity on the matter.

Mr Bgoni spoke about introducing blockchain-based new products and services such as real estate investment trust securities (REITS), mineral commodities exchange and exchange traded funds (ETFs) as key to expanding the market into a vibrant exchange.

“It’s something (Blockchain technology) we need to look into, though not now, the technology is very good,” Bgoni said in an interview at the inaugural C-Trade investor conference day in the capital last week,” he said.

“Each transaction, you can see who owns it so it is easy to audit it that is why people like it, is easy to verify it, it is transparent and takes away fraud, that part of the technology you can see everything and it makes sense, it is definitely an area that ZSE can explore.”

Elsewhere around the world, some stock exchanges have not only adopted Blockchain, they have also started to offer crypto-currency-related products, in a move that’s been viewed as key to introducing crypto-currency to conventional equities investors.

In April, for example, the Jamaica Stock Exchange announced that it was starting a limited pilot to trade bitcoin (BTC) and ethereum (ETH). The move by the JSE is the latest in a series of announcements that aim to open the doors to crypto-currency investment.

In the US, Nasdaq, the world’s second largest stock market by capitalisation, has recently listed BTC and ETH indices, while Switzerland’s main stock exchange, SIX, listed a ripple-based exchange-traded product.

Mr Bgoni indicated that there was no clarity yet on regulations governing the trade of blockchain-based virtual currencies in the country.

“Then there is the money side to blockchain technology. This is a bit difficult, in terms of regulation, we are not yet clear on this and we do not want to do something where regulation is not clear as an exchange. But the technology side is very good,” he said.

It will be interesting for the ZSE to adopt blockchain that will create a safe, efficient and transparent regulatory framework.

Bitcoin Association’s Bitcoin SV Hackathon Finalists Announced in Lead Up to CoinGeek Toronto Conference 8506

Bitcoin SV

Bitcoin Association, the leading global organization for Bitcoin business, has held the first ever Bitcoin SV (BSV) Hackathon. The first phase of competition was a virtual hackathon that took place globally over the weekend of May 4-5 with 122 individual competitors, plus another 94 joining together to form 42 teams. Their challenge was to develop a solution for BSV on-boarding issues, extending beyond on-boarding new users to the challenge of also on-boarding new developers to BSV.

The quality of entries was so high that the judges named 14, rather than the originally expected 10, semi-finalists. Now the entries have been narrowed to three top finalists. A representative of each finalist team will be flown to Toronto for the ultimate judging and awarding of 400 BSV coins (currently valued over $27,000) at the CoinGeek Toronto conference on May 30. All finalists will also have the opportunity to be considered for investment by CoinGeek founder Calvin Ayre, the technology entrepreneur. The finalists will be judged by four expert judges plus a vote by the entire conference audience, expected to be more than 250 global cryptocurrency elites. The winner will be announced at the conference’s end with 1st place winning 250 BSV, 2nd place 100 BSV, and 3rd place 50 BSV.

No, Bitcoin Didn’t Surge Because of a Stupid April Fool’s Joke 4188

The 23 percent rally that sent the bitcoin price to its four-month high did not start with an April Fools’ Day joke.

It is wise for analysts and financial professionals to look for clues behind any unnatural price action. It took bitcoin only one hour to break a plethora of strong resistance levels and claim $5,023 as its session high. Many analysts on Twitter showed their lack of awareness about the price movement. Some looked for answers in technical patterns, while others merely refuted bitcoin’s upside move as April Fools’ rally. Have a look:

Bloomberg cited an article published on April 1 that joked about the Securities and Exchange Commission’s (SEC) approval of two bitcoin exchange-traded funds (ETF). Had such a piece of news been real, it would have resulted in a surge similar to what the bitcoin market is experiencing today. But the bitcoin price exploded one day after the fake coverage made to the wire. It was easier for Bloomberg to connect the visible dots. Their title read: “April Fools: Traders Chase Another Unexplainable Bitcoin Rally.”

But It Wasn’t an April Fools’ Rally

Can a joke influence a widely distributed spot market to pump its underlying asset by $12 billion? In a movie, perhaps.

Bitcoin’s So-Called April Fools’ Rally | Source: CMC

Alex Krüger was quick to point out the reason behind the bitcoin rally. The cryptocurrency economist shared one of his earlier tweets to explain what could be powering the ongoing upside action.

In his Feb 20 tweet, Krüger had shared three successive stages following which bitcoin could reverse from its most extended bearish bias. The first stage was capitulation, in which investors surrender before a bearish asset and leaves the market on a loss. The second stage involved a strong reversal trend. And the third stage indicates a slow buildup towards the upside. In those tweets, Krüger had also mentioned a scenario in which bitcoin could explode to the north without any concrete explanations.

“A strong move up to fill in the gap above is a matter of when not if. Such move up can happen entirely on technicals i.e. it does not need a fundamentals catalyst nor a change in market structure.”

Source: Alex Krüger

No One Pumped Bitcoin

Krüger’s tweet didn’t exactly explain the bitcoin rally, but it certainly envisioned a scenario that is taking place right now. The question what prompted the sudden bitcoin rally has no answer, in reality. The cryptocurrency’s market is full of instances in which it rose as much as $1,400 in a day. And those pumps did not happen on or after an April Fools’ Day.

Today’s bitcoin price action could very well be a part of an already-happening recovery. Since mid-December, bitcoin appears to have established a support area above $3,120. There is plenty of strong fundamental developments taking place this year inside the crypto markets, as covered by NewsBTC here. Bitcoin’s surge was inevitable. Let’s admit that it happened and watch the price move in either direction.

Crypto Community Speculates On What Triggered Massive Bitcoin Price Rally 4097

The majority of 2019 has been a nail biter for crypto market participants, as investors, traders, and analysts alike watched and waited for signs the elusive Bitcoin price bottom may be in. Overnight last night, a massive rally occurred, taking the price of Bitcoin through strong resistance at $4,200 to roughly $4,800. Following the move, the entire crypto community is speculating on what caused the enormous price spike and if the rally signals the end of the bear market.

Crypto Community Conflicted Over What Sparked Bitcoin Price Rally

Bitcoin is the king of all speculative assets, and those that trade or invest in the cryptocurrency often speculate over the smallest details. When such a large movement occurs on Bitcoin charts, everyone starts talking and speculating on what the reasons were behind a rally.

With such a large rally following over a year of downtrend, the crypto community is buzzing more than usual, trying to figure out what was the fuel behind the powerful upward movement.

A Bitcoin April Fools Joke Gone Right?

Major media powerhouse Bloomberg believes that the rally may have been triggered by an April fools day joke suggesting that a Bitcoin ETF had been approved by the Securities and Exchange Commission.

The idea is that CPU-based algorithmic trading bots picked up on the news, and started buying the asset en masse near important resistance levels, breaking it and triggering a cascade of stop losses.

Altcoin Trading Pairs Get Short Squeezed

Another theory, is that following the apparent “alt season” that has graced the crypto market with substantial gains over the last few months, highly leveraged altcoins paired with Bitcoin on exchanges may have resulted in a short squeeze.

With so many traders in the green on altcoin trades, profits would quickly be taken at the first sign of altcoin pair ratios falling. And with a move as powerful as what was witnessed with Bitcoin, many altcoin trading pairs saw their ratios plummet as much as 10%. As the ratio drops in favor of Bitcoin, stop losses are triggered and traders begin to secure altcoin profit into BTC, which further drives up the price of Bitcoin.

The truth behind the rally is likely a combination of all these potential reasons, with each claim offering some validity. Altcoins have indeed been on a profit-generating kick, and Bitcoin’s supply has been gobbled up by smart money accumulating at what in hindsight may be the crypto bear market bottom.