Companies offering Bitcoin financial services to customers all around the world are expanding their services to appeal to as many people as humanly possible. In the Bitcoin ecosystem, there are quite a few of those companies around, but Magnr – formerly known as BTC.sx – might be one of the frontrunners. The company’s new “Project Kodo” blockchain idea could be of particular interest to quite a few people.
Magnr’s “Project Kodo” Overseen by Colin Kwan
There is quite some behind-the-scenes activity going on at Magnr, a company best-known for their Bitcoin trade margin loans feature. Very few people are aware of Magnr’s second service, which focuses on interest-bearing Bitcoin wallets. Interest being paid out to these users is generated by the trading platform’s revenue.
Internally, there has been a recent shuffling of positions, as Colin Kwan has switched rules from COO to CEO. Former Magnr CEO Joe Lee has stepped down and will now fulfill the role of chief innovation officer. Magnr users will feel no effect because of this managerial change, as there are no drastic changes expected at this time.
It is interesting to note that Magnr’s Bitcoin derivative trading is an unregulated market, even though that situation could come to a change in the very near future. The Commodity Futures Trading Commission, for example, has become more vocal in terms of labelling virtual currencies, such as Bitcoin, as money transmitters in this “niche” market.
“We reached out to the FCA and said we are going to be taking people’s Bitcoin and lending them to other people to make trades. We told them we are also going to be taking Bitcoin and saving those, as in storing those and paying interest on them. What is your position on this? They came back and said we don’t regard this as a regulated business, because we are not dealing with fiat currency.” – Magnr CEO Colin Kwan told DigitalMoneyTimes.
Bitcoin has a coloured history of popular trading platforms turning into scams, or losing customer funds. Magnr has taken the necessary precautions to prevent these kind of situation, as the platform’s trading algorithms are combined with a capping system to prevent the loss of customer funds.
Making Banks More Efficient and Streamlined
Not too many details were released about Magnr’s “Project Kodo”, which is being supervised by newly appointed CEO Colin Kwan. All we know at this time is that Project Kodo is a secret blockchain project, aimed to solve one of the most critical issues banks are facing right now: inefficiency in the trading of financial assets.
“I have to say, like many other incumbent banking institutions, Deutsche has a lot of infrastructure issues that need sorting out. Bitcoin blockchain is not going to fix all of that however it could solve a very large portion. There are some brilliant people working there but those people are hampered by old technology. If they could fix it would make that company so much more agile, so much more efficient and they would be a lot more profitable too. When I was at UBS, everything ran so smoothly. They are one of the premium IT places. They could run businesses with five people, whereas at Deutsche you would need a lot more.” – Colin Kwan continued.
In the end, it all comes down to the human element in the equation. Most banks will play political games when some form of heavy decision has to be made, whereas other financial institutions do not. This is one of the main reasons why Swiss bank UBS is heavily invested in using blockchain technology for their own needs.
Images courtesy of IBTimes, Magnr, UBS