Fintech

OCC’s new Office of Financial Technology has a director and an opening date

The OCC is replacing its Office of Innovation with a new body that will help it stay on top of fintech developments and emerging risks.

The United States Office of the Comptroller of the Currency (OCC) officially announced the establishment of its Office of Financial Technology on March 30. The new office will broaden the OCC’s technology focus and help it stay abreast of the rapid developments in the banking industry, it said.

The Office of Financial Technology will open on April 10 under the leadership of Prashant Bhardwaj, who will have the titles of OCC deputy comptroller and chief financial technology officer. Bhardwaj is a new hire at the agency. According to the announcement:

“Mr. Bhardwaj will lead the team responsible for analysis, evaluation, and discussion of relevant trends in financial technology, emerging and potential risks, and the potential implications for OCC supervision. “

Plans to establish the new office were announced in October. It will incorporate and expand the OCC’s Office of Innovation, which was created in 2017.

The OCC is an independent bureau of the Treasury Department that has been under the direction of Acting Comptroller of the Currency Michael Hsu since May 2021. The bureau supervises “national” commercial banks in the United States, which are members of the Federal Reserve and insured by the Federal Deposit Insurance Corporation.

The @USOCC announces the establishment of its Office of Financial Technology. Read more at https://t.co/P57FSe4mp2 pic.twitter.com/wgdzmA2GX1

— OCC (@USOCC) March 30, 2023

The OCC has repeatedly cautioned banks against dealing with crypto, particularly in its interpretive letters. In addition, it was one of the three bank regulatory agencies that released a joint statement at the beginning of the year warning banks about the risks of crypto.

“Banking organizations are neither prohibited nor discouraged from providing banking services to customers of any specific class or type,” but holding crypto assets as principal “is highly likely to be inconsistent with safe and sound banking practices,” the OCC wrote, along with the Federal Reserve and FDIC.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Web2 giants coming into Web3 could benefit ecosystem — PBW founder

Paris Blockchain Week founder Michael Amar believes large Web2 companies entering the Web3 space bring resources capable of increasing mass adoption.

Paris Blockchain Week (PBW), an annual gathering of professionals within the blockchain industry, has kicked off its fourth edition, with industry leaders and entrepreneurs from across the world gathering to discuss the latest trends and developments impacting the digital asset space.

In an exclusive interview with Cointelegraph, Michael Amar, the founder and chairman of Paris Blockchain Week, shared that the original vision for the conference was to put Europe on the map, as it was previously “nowhere on the map for blockchain.”

*Cointelegraph’s Joe Hall with Michael Amar.*

Founded in 2019, PBW was created with the vision of bringing together professionals within the industry to advance blockchain awareness and adoption. According to Amar, the aim of the conference was to progress the industry as a whole, addressing topics like regulation and deep technology.

Fast forward to 2023, the topics have expanded to include Web3, nonfungible tokens, the metaverse, and decentralized autonomous organizations. Amar said that the growth of Web3 is beneficial for the blockchain industry, as it can promote wider adoption of digital assets, potentially opening the door to other industries. He told Cointelegraph:

“Now that we’re opening up to brands, we’re talking IP, we’re talking innovation, we’re talking marketing. It opens up to luxury brands, to fashion brands, to art, to real estate, to so many industries. So, I think this Web3 movement is very good because it creates mass adoption for crypto and blockchain at the end of the day.”

Speaking on how the participation of tech giants impacts the ecosystem, Amar shared:

“The Web2 players and tech giants are coming, so we’re very happy to have Google or Amazon or SAP part of the event. And actually, they’re bringing their resources and their projects to the space to make Web3 happen for the masses.”

Amar addressed concerns about whether the entrance of Web2 companies, as well as retail and consumer brands, undermines Web3’s mission of decentralization. He believes that while the centralized power of these companies is a concern, their resources, tools, platforms and investments can be used to drive change and bring about more governance within Web3 systems. Although these companies may never be fully decentralized, Amar suggested that having something meaningful to decentralize is a step in the right direction.

Paris Blockchain Week hosts over 10,000 attendees and sold out last year. Alongside the main event, it has a dedicated day for investors, a competition for startups, a hackathon and additional side events. The 2022 summit drew approximately 3,000 attendees and included talks with top personalities in the field, including Binance’s Changpeng Zhao and Tether’s Paolo Ardoino.

BlockFi in no immediate danger, despite Silicon Valley Bank exposure: Report

Christine Okike, a lawyer representing BlockFi at its bankruptcy hearing, claimed that BlockFi is not in immediate danger and has sufficient funds to continue operating normally.

According to a lawyer representing the bankrupt crypto lender BlockFi Inc., the company is in a stable financial position with access to ample cash reserves, despite having over $200 million in exposure to Silicon Valley Bank, Bloomberg reported.

According to the report, BlockFi had $227 million invested in a money market mutual fund that Silicon Valley Bank marketed; nevertheless, the risk is probably related to the performance of the fund, not the bank's financials. https://t.co/xsgWgQRsLy

— Cointelegraph (@Cointelegraph) March 11, 2023

During a bankruptcy hearing on Monday, Christine Okike of Kirkland & Ellis claimed that BlockFi is not in immediate danger and has sufficient funds to continue operating normally, including paying employees and vendors.

Okike reportedly said:

“BlockFi is fine … We have access to cash to operate in the normal course, including paying employees and vendors.”

Okike also noted that BlockFi expects to gain access to a significant portion of cash held with Silicon Valley Bank later in the day. The majority of BlockFi’s exposure to Silicon Vally Bank is through third-party money-market mutual funds, which Okike claimed had no direct impact on the company’s operations. The bankruptcy case in question is identified as BlockFi Inc., 22-19361, and is being heard in the U.S. Bankruptcy Court for the District of New Jersey in Trenton.

On March 10, California’s financial regulator shut down Silicon Valley Bank, a major financial institution catering to venture-backed companies. The shutdown makes it the first Federal Deposit Insurance Corporation-insured bank to fail in 2023.

On March 11, a bankruptcy filing revealed that defunct crypto lender BlockFi had $227 million worth of uninsured funds allocated to a money market mutual fund (MMMF) offered by the troubled Silicon Valley Bank (SVB).

As previously reported by Cointelegraph, global banking giant HSBC has announced the acquisition of Silicon Valley Bank UK (SVB UK), a subsidiary of the now-collapsed Silicon Valley Bank, for just 1 British pound ($1.21). According to HSBC, as of March 10,, SVB UK had loans worth around 5.5 billion pounds ($6.7 billion) and deposits of around 6.7 billion pounds ($8.1 billion).

Crypto and blockchain education becomes priority at top universities

As crypto adoption rises, more universities are offering crypto courses.

In a world where cryptocurrencies and blockchain technology make direct peer-to-peer transactions possible and transcend traditional financial norms, more people want to learn about them to keep up with the times.

Universities worldwide are beginning to offer cryptocurrency-related courses to cater to this new paradigm. Due to rising demand, many of the world’s top universities offer crypto-related courses.

There’s been a lot of hype regarding cryptocurrencies — mainly due to their disruptive potential — and the rise of crypto education has strongly coincided with this. According to a 2022 survey from Study.com, about two-thirds of American parents and college students conversant with cryptocurrencies thought the topic should be taught in schools as mandatory.

A recent poll conducted by Grayscale Investments, in conjunction with The Harris Poll, revealed that approximately 53% of Americans viewed cryptocurrencies as the future of finance.

Such positive perspectives regarding cryptocurrencies have given credence to introducing related courses in institutions of higher learning.

Why more people are seeking crypto education

Crypto’s decentralized nature and ease of acquisition have attracted speculative traders and long-term investors.

However, investing in digital currencies comes with significant risk, and more investors are looking to educate themselves before dabbling in the new asset class.

Some entrepreneurs and business managers looking to learn more about cryptocurrencies to transform their businesses have turned to crypto education, especially the latest crypto-based revenue-generation models.

Companies are also driving demand for crypto education. In recent years, several blue-chip firms, such as IBM, Oracle, Cisco, Amazon and Google, have actively sought hires with a crypto or blockchain orientation to help develop innovative blockchain products. This has increased the demand for related courses. Some companies have gone a step further and partnered with institutions offering courses to further crypto and blockchain research and support related programs.

Mary Lacity, a distinguished professor of information systems at the Sam M. Walton College of Business, told Cointelegraph that corporate companies were among the first drivers of the trend.

“The initial demand to start these programs came from our industry partners, including Walmart, J.B. Hunt, Tyson Foods, ArcBest and IBM,” Lacity said.

The professor highlighted that the burgeoning corporate clientele initially prompted the institution to focus on private blockchain courses. Still, the curriculum has since been revamped to cover public blockchains due to changing market dynamics.

Recent: SEC vs. Kraken: A one-off or opening salvo in an assault on crypto?

“Our students are interested in the opportunities to create their own decentralized applications,” she said.

Regarding the future of crypto education, Lacity said that demand was strong and was likely to stay that way for the foreseeable future.

What crypto courses cover

Crypto courses typically contain the essential areas that crypto users and investors seek to understand, like the basics of blockchain technology.

Understanding how blockchain systems function, and their advantages and disadvantages, is integral to understanding cryptocurrencies. Some cryptocurrencies, such as Bitcoin (BTC), are inherently deflationary, with mechanisms restricting supply and increasing mining difficulty. This, in turn, creates scarcity, raising BTC’s value and purchasing power over time.

Cryptocurrencies that lack such properties have limited upside price potential due to oversupply. Details like these help learners, especially investors, to make better-informed decisions when exploring crypto.

Crypto education also helps learners understand the risks involved when investing in cryptocurrencies, such as extreme volatility and the factors that trigger it, like regulatory changes and negative market sentiment.

Cryptocurrency courses designed for beginners usually cover the basics, such as obtaining and transacting with cryptocurrencies. The programs typically teach learners about crypto mining, regulation, taxation, safety measures when using custodial and noncustodial wallets, and how to spot scams.

More advanced courses related to crypto risk management typically cover risk management strategies and technical analysis. Such courses help learners understand the crypto market’s deeper mechanics and how to avoid significant losses.

Many major universities have unveiled crypto-related courses at the beginner, intermediate and advanced levels. Some programs have been integrated across departments to allow students majoring in other subjects to join them.

The National University of Singapore

The National University of Singapore is among the top public universities in Singapore, ranked No. 11 in the QS World University Rankings 2023. The university has a wide variety of crypto and blockchain-related undergraduate and postgraduate courses.

Among its most unique program is the blockchain commercial applications course, which examines blockchain features and its commercial use cases. The course is tailored for business professionals who wish to integrate the technology into their businesses to improve transparency and efficiency.

The course covers subjects such as distributed ledgers and smart contracts, blockchain resources and architecture, and the commercial application of blockchain.

The university also has crypto-centric courses covering token design, economics and crypto philosophy.

Cornell University

Cornell University is a private Ivy League university based in Ithaca, New York. The institution has a wide range of courses related to cryptocurrencies for both novice and advanced learners. The introduction to blockchains, cryptocurrencies and smart contracts course is among the most notable targeted at tech students.

*Cornell campus, as seen from the McGraw tower. Source: sach1tb*

Its syllabus examines the inner workings of cryptocurrencies, such as using digital signatures in transaction authentication. The course also has modules that cover cryptographic concepts, such as zero-knowledge proofs and smart contracts.

The Hong Kong Polytechnic University

The Hong Kong Polytechnic University is a government-funded university in Hung Hom, Hong Kong. The institution offers a wide range of tertiary courses as well as crypto and blockchain-related programs.

Among the most advanced courses it offers is the Master of Science in Blockchain Technology. The course is set up for students already well-versed in crypto and blockchain technology, and teaches learners how to analyze, create and implement blockchain technologies in a way that supports fintech services.

The University of Nicosia

The University of Nicosia in Nicosia, Cyprus, offers unique cryptocurrency courses. Among the most noteworthy programs for advanced students is the Master of Science in Blockchain and Digital Currency. The program aims to help students become digital currency and blockchain professionals.

Recent: DeFi security: How trustless bridges can help protect users

The course curriculum covers various subjects, including blockchain systems and architectures, digital currency programming, cryptographic systems security, law and regulation in blockchain, and token economics.

EU Business School

The EU Business School is a private business school established in 1973, with numerous campuses worldwide. Its Geneva, Munich, Montreux and Barcelona campuses, among others, offer crypto-related courses. One of the most distinctive courses offered by the institution is the MBA in Blockchain Management.

This course covers the different use cases of blockchain technology and how it can help solve many of the problems in society today, such as transparency and fair trade. It also allows students to evaluate some of the technology’s more technical and fundamental aspects.

The future of crypto education

People looking to get involved in the crypto industry are increasingly seeking crypto education, which will likely increase the spectrum of courses and the number of institutions offering them.

Some crypto companies are also beginning to partner with learning institutions offering crypto courses to enhance research and work with qualified learners. The trend will likely continue for the foreseeable future due to synergistic benefits.

Carbon market gets a much-needed boost from blockchain technology — Web3 exec

An Allinfra Climate exec thinks digitizing carbon market processes via distributed ledger technology can bring about efficiency and predictability that hasn’t existed before.

Automated systems and blockchain technology are being increasingly utilized to improve the efficiency and accuracy of the carbon market, a critical component in the fight against climate change.

Cointelegraph spoke to Bill Kentrup about the role of blockchain technology in digitizing verifiable data in the carbon market. Kentrup is the head of origination and co-founder of enterprise software Allinfra Climate — a platform designed to help institutions achieve their sustainability goals. According to him, on-chain monitoring, reporting, verification, issuance, allocation and retirement of carbon credits and carbon claims could bring about efficiency and predictability that hasn’t existed in the past.

Kentrup said that by putting everything on “digital rails,” systems for detecting double-counting, corporate carbon accounting, ratings and reporting to government regulators can all go digital, saying:

“It’s far less efficient for a digital accounting system to process data from reports, non-digital sales, purchase agreements and from traditional registries that have limited info in terms of who the final owner of a retired asset is.”

Kentrup mentioned that historically, the challenges and inefficiencies associated with the carbon market have resulted in understandable frustration and significant pushback. According to him, this pushback contributed to the failure to extend the Kyoto Protocol beyond 2012.

The Kyoto Protocol is an international treaty aimed at reducing greenhouse gas emissions and addressing climate change. It established a system of emissions trading, allowing countries that have exceeded their emissions reduction targets to sell their surplus allowances to countries that have not met their targets.

Speaking on how the current manual process of collecting and verifying data in the carbon market falls short — and how blockchain technology can help address these limitations — Kentrup said, “Most traditional approaches used to monitor, report and verify (MRV) emissions reductions use intermittent manual processes to determine the environmental impact of projects. Data collection is often labor-intensive and time-consuming when the number of emission-reducing projects seeking environmental finance increases.”

“Historically, there tend to be significant bottlenecks in terms of the availability of validation and verification bodies required to do the work from start to finish — the process of getting a single issuance of carbon credits issued from a project takes months (sometimes over six months).”

He added:

“In order for organizations to truly reduce net emissions and accurately measure climate impact, it is critical that we have highly provenanced data tied to carbon offsets. A blockchain-based system can help us achieve this with real-time digital data capture that is verifiable and auditable.”

Explaining how the verifiability of data collected through blockchain technology improves the accuracy of reporting in the carbon market, Kentrup said “A blockchain-based system is a way of ensuring that data captured from devices and other carbon-relevant sources retains a high degree of provenance. […] This results in greater predictability, reduced time and cost, and vastly improved verifiability and audibility.”

Automating the collection and verification of data in the carbon market faces myriad challenges, which Kentrup said include the availability of appropriate market-rational technology, as certain aspects don’t yet have suitable technology available to fully automate or digitize. In addition, the over-enthusiasm of “tech for climate” providers that don’t have much experience in climate finance will inadvertently fail and, in some cases, damage the market. This runs the risk of tainting the wider market’s view of “tech for climate.” Finally, resistance to adoption amo traditional market players is also a challenge for the sector.

Despite the challenges, Kentrup expressed his optimism, as new ideas and technology are being implemented and traditional players are shifting toward adopting digital solutions for climate finance.

Remarking on the role blockchain tech will play in the foreseeable future of the carbon market, Kentrup shared, “While potentially not the only solution available, a blockchain-based platform currently provides all stakeholders in the environmental financial product market with greater trust in underlying products, vastly reduced and more predictable time and costs, increased efficiency in allocating value to participating parties, and greater optionality and reporting — ultimately contributing to the acceleration of positive climate action.”

“Putting carbon-related data on ‘digital rails’ is a way of future-proofing a party’s decarbonization activities. In the near term, it allows for quicker, cheaper production of carbon offsets and for better-structured financing, insurance and professional services — all absolutely critical to strive for given the urgency with which we must combat climate change.”

Digital bank Revolut launches crypto staking for UK and EEA customers: Report

Staking is currently available for DOT, XTZ, ADA and ETH, with yields reportedly ranging from 2.99% to 11.65%.

United Kingdom-based neo-banking platform Revolut, which boasts 25 million customers globally, has introduced crypto staking to its U.K. and European Economic Area (EEA) customers.

According to a report from London-based news agency AltFi, the staking feature is expected to go live this week, allowing users to generate income on their crypto assets during its “soft testing” phase.

At present, the staking feature is available for Polkadot’s DOT (DOT), Tezos’s XTZ (XTZ), Cardano’s ADA (ADA) and Ether (ETH), with yields ranging from 2.99% to 11.65%. However, these yields are not guaranteed.

In cryptocurrency, staking is a process where an individual holds or locks up a certain amount of a specific digital asset in a wallet for a certain period, typically from several days to several months. This action helps secure the network and validates transactions on a proof-of-stake blockchain. In return, individuals are rewarded newly minted coins or a share of the transaction fees.

Over the past few years, Revolut has been incorporating cryptocurrencies into its services. In 2017, it began offering crypto trading services, which have since become a significant source of revenue for the company, particularly with the introduction of products like crypto cashback for premium users. Now, Revolut offers trading for nearly 100 different crypto assets and also enables its customers to make purchases using their crypto holdings.

In an effort to educate its customers on crypto and blockchain, Revolut has also been offering free “Learn & Earn” courses on the basics of these topics, and rewarding users who complete the program with free crypto.

In September 2022, Cointelegraph reported that the U.K.’s Financial Conduct Authority added Revolut to its list of authorized companies offering cryptocurrency products and services.

Revolut joined 37 other firms that have been granted the green light to offer such services in the U.K. after being granted an extension to operate as a crypto asset firm with temporary registration in March 2022.

Ark Invest CEO eyes crypto turnaround amid whiffs of a Fed pivot

The crypto and innovative tech investment firm is confident that inflation will fall and the Fed will pivot in 2023.

The chief executive from crypto and tech investment firm Ark Invest believes crypto assets will see a huge turnaround this year as inflation falls and the Fed pivots.

In a company video blog on Jan. 23, Ark Invest CEO and CIO, Cathie Wood, started with a glance at the macroeconomic outlook. She said there was all kind of signals pointing to lower inflation which “suggests that the Fed should pivot soon.”

This would be beneficial for risk-on assets such as crypto as the macroeconomic outlook improves and financial belts are loosened.

*Ark Invest’s Cathie Wood and Brett Winton on their 2023 outlook. Source: Ark Invest*

She added that the firm believes inflation will come down to the 2% Fed target level. However, Wood predicted that inflation could fall below this level and even into negative territory because the money supply has been falling.

The market is waiting for a signal from the Federal Reserve, she said adding “we think that will come in the first half of 2023.” She said that Ark Invest portfolios should do very well if interest rates are about to fall below expectations.

Ark has a crypto asset fund, blockchain venture investments, a disruptive innovation fund, and six active technology and fintech-based exchange-traded funds (ETFs).

Meanwhile, Ark’s Chief Futurist Brett Winton spoke of artificial intelligence (AI), noting that advances would accelerate in 2023. He also predicted that crypto assets would see a big turnaround this year.

“Public blockchains, cryptocurrencies, and crypto assets which are going through a bumpy period right now are going to become even more differentiated for their scarcity in an age of abundance.”

He added that when there is a turn in the macro environment, and the Fed “changes its spots,” the opportunity for “expansion and value realization within the venture and public market space is even larger.”

Wood concluded that these technological innovations are deflationary which will “cause a boom in the products and services associated with this innovation.”

Ark Invest’s most recent move was to take profit on some of its Grayscale Bitcoin Trust (GBTC) holdings and load up on 320,000 Coinbase (COIN) shares worth around $17.6 million.

ARK Invest CEO sees potential crypto rebound amid whiffs of a Fed pivot

Cathie Wood, head of the crypto and innovative tech investment firm, is confident that inflation will fall and that the Fed will pivot in 2023.

The chief executive from crypto and tech investment firm ARK Invest believes crypto assets will see a huge turnaround this year as inflation falls and the Fed pivots.

In a company video blog on Jan. 23, ARK Invest CEO and chief investment officer Cathie Wood began with an overview of the macroeconomic outlook. She said there was all kind of signals pointing to lower inflation, which “suggests that the Fed should pivot soon.”

This would be beneficial for risk-on assets such as crypto as the macroeconomic outlook improves and financial belts are loosened.

The market is waiting for a signal from the Federal Reserve, she said, adding that “we think that will come in the first half of 2023.” She said that ARK Invest’s portfolios should do very well if interest rates are about to fall below expectations.

ARK has a crypto asset fund, blockchain venture investments, a disruptive innovation fund and six active technology and fintech-based exchange-traded funds (ETFs).

Meanwhile, ARK Chief Futurist Brett Winton spoke about artificial intelligence (AI), noting that advances would accelerate in 2023. He also predicted that crypto assets would see a big turnaround this year.

“Public blockchains, cryptocurrencies and crypto assets which are going through a bumpy period right now are going to become even more differentiated for their scarcity in an age of abundance.”

He added that when there is a turn in the macro environment and the Fed “changes its spots,” the opportunity for “expansion and value realization within the venture and public market space is even larger.”

Wood concluded that these technological innovations are deflationary, which will “cause a boom in the products and services associated with this innovation.”

ARK Invest’s most recent move was to take profit on some of its Grayscale Bitcoin Trust (GBTC) holdings and load up on 320,000 Coinbase (COIN) shares, worth around $17.6 million.

Alameda Research liquidators lost $72K during fund consolidation attempt

The loss occurred while Alameda Research’s liquidators were attempting to close a borrow position on Aave but instead removed the extra collateral used for the position.

The liquidators of Alameda Research continue to encounter obstacles in their efforts to recover funds for creditors. Crypto analytics firm Arkham disclosed on Twitter that the liquidators lost $72,000 worth of digital assets on the decentralized finance (DeFi) lending platform Aave while trying to consolidate funds into a single multisignature wallet.

The liquidators were attempting to close a borrow position on Aave but instead removed extra collateral used for the position, putting the assets at risk of liquidation. Arkham reported that over nine days, the loan was liquidated twice for a total of 4.05 Wrapped Bitcoin (WBTC), which creditors will now not be able to recoup.

This resulted in the liquidation of around 4 WBTC, $72K at current prices.

When positions are forcibly closed on AAVE, a penalty is also slashed from the liquidated collateral.

The liquidators, themselves, were liquidated. Are they in over their heads? pic.twitter.com/ALjFnj7S56

— Arkham | Crypto Intelligence (@ArkhamIntel) January 12, 2023

According to Arkham, “Over the past 2 weeks, around $1.4M of tokens has been steadily returned to this central multisig from scattered Alameda wallets.” However, significant sums of capital still remain stranded in over 50 Alameda wallets, the largest of which is worth over $14 million.

Arkham shared that the operators continue to make on-chain mistakes. For example, when attempting to withdraw funds from a vesting recipient wallet, the liquidators failed to remove $1.75 million in LDO and failed again when trying to remove “$238K or 250K tokens.” The LDO tokens were still vesting, and the liquidators had to resort to taking out 10,000 LDO at a time to transfer to the central wallet, which resulted in nine failed transactions.

Arkham’s analysis suggests there are still DeFi positions held in other Alameda wallets, implying that liquidators may be struggling to manage the process.

On Jan. 2, Cointelegraph reported that Alameda Research’s troubles predated FTX. As reported by Cointelegraph, Alameda Research almost collapsed in 2018, even before FTX was in the picture.

Former employees at Alameda Research also disclosed that the algorithm used for trading at Alameda was designed to make a large number of fast trades. However, the firm was losing money by incorrectlypredicting the direction of price movements.

Furthermore, it was revealed that in 2018, Alameda lost nearly two-thirds of its assets due to the fall in price of XRP (XRP). The firm was on the brink of collapse but was rescued by CEO Sam Bankman-Fried, who raised funds from lenders and investors on the promise of returns of up to 20% on their investment.

Jack Ma surrenders control of fintech giant Ant Group

After founding Ant Group in 2014, Chinese billionaire Jack Ma is now ceding control of the company as part of Ant’s corporate structure changes.

Chinese billionaire and Alibaba founder, Jack Ma, will no longer control the fintech giant Ant Group as part of recent changes to the company’s corporate structure.

Ant Group officially announced that Ma has agreed to give up control of Ant Group as part of the company’s further corporate governance optimization and restructuring.

Before the change, Ma was the control person in Ant, exercising control over the company through related entities in addition to his 10% stake in Ant.

Once the restructuring process is complete, no single shareholder will have control over Ant, the company said in a statement. Major shareholders like Hangzhou Junhan and Hangzhou Junao will independently exercise their voting rights in Ant, the firm noted.

“The adjustment will not result in any change to the economic interests of any shareholders of Ant Group and their beneficiaries,” Ant added.

According to some analysts, Ant’s restructuring and Ma’s relinquishing control over the company could positively impact the firm in the long term.

Wang Pengbo, a senior financial analyst at BoTong Analysys, believes that the new company structure with more diversified voting rights is more stable. “It paves the way for it to go public in future, although a listing in the immediate future is very unlikely,” he noted.

Amid the news of Ma surrendering control over Ant, shares of Ant-affiliated company Alibaba have jumped significantly. Alibaba stock has rallied nearly 10% on the New York Stock Exchange since Ant made the announcement, according to data from TradingView.

*Alibaba’s stock 30-day price chart. Source: TradingView*

As previously reported, Ant attempted to conduct the largest initial public offering (IPO) in 2020, planning to raise about $30 billion. The Chinese government eventually opted to halt Ant’s IPO, as local authorities wanted to assert their power over private businesses.

After the IPO suspension, Ant has continued to actively explore the benefits of blockchain and digital assets. Owning the world’s largest digital payment platform Alipay, Ant continued to be involved in developing China’s national digital currency after starting cooperation with the People’s Bank of China in 2017.

The company is also among Chinese tech giants that created blockchain alliances over the past few years for related operations. The company has been actively developing its blockchain business, AntChain, introducing new products in 2022.

Despite its apparent interest in blockchain and related technologies, Ant has still moved to comply with China’s negative stance on crypto. As Cointelegraph reported in March 2022, Ant Group was among firms enforcing some restrictions on their nonfungible token platforms, fearing the government’s crackdown.