ivyKoinTM will look to develop a blockchain based-cryptocurrency that will allow senders to voluntarily de-anonymise transactions. The rationale behind the feature is to make the coin palatable to banks and financial institutions bound by KYC and AML requirements, compliance issues that thus far, have seen them turn a cold shoulder to the crypto world.
According to a market announcement released in September last year, the coin will embed more than 70 data points into a transaction, which it claims is up to 8 times more than existing networks (SWIFT, ACH, CHIPS, FEDWIRE) etc.
Change Financial are no stranger to the banking world, with the fintech operating a mobile banking business in the US that serves over 130,000 customers. As of September, last year, its ChimpChange business had laid claim to US$150 million in annualised total transaction volume and $16 million in deposits booked during the September quarter.
The ASX listed fintech has taken a 33 per cent equity stake in the ivyKoinTM project for US$100,000. Discovery Capital Partners based out of Perth will lead the pre-sale, with the white paper expected to be released in the next day or so.
What’s interesting about ivyKoin
Who’s behind it. We know network effects are one of the key problems that stop many coins getting traction, and I’d place bets there is a deeper strategic play here for Change Financial and their ChimpChange mobile banking platform.
Some see Ripple as the first of the ‘legitimised’ cryptocurrencies, with many people buying in because it’s not the libertarian crypto bedfellow of the anarchic, stateless movement, like Bitcoin is. ivyCoinTM seems to fall into the ‘play by the rules’ crypto bucket, which will appeal to a certain investor appetite.
If you’re looking for an easier trade than buying into the pre-sale or the coin, you could place some bets on the share price of Change Financial heading north in the next few weeks. The word ‘blockchain’ in market announcements tends to have that effect on listed entities these days. First Growth Fund (ASX:FGF) recently saw its share price rocket up after announcing it would raise funds to invest in blockchain technologies.
If you’re curious to know more, you can join the ivyKoinTM Telegram or sign up for notifications regarding the white paper at their website.
Daily Fintech Advisers provides strategic consulting to organizations with business and investment interests in Fintech. Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy.