Rockefellers Enter Cryptocurrency Space Looking To Invest In Blockchain Startups

  • Venrock, the Venture Capital arm of the Rockefeller Foundation has partnered with CoinFund
  • Rockefeller is the latest of a series of powerful names in business and industry to join the Cryptocurrency market

Last week saw the likes of Soros Fund Management took an active interest in the cryptocurrency market.

The company, set up by the legendary George Soros has since received approval to trade in cryptocurrencies as part of its vast trading portfolio. However, the fund has yet to make any significant bets within the field.

Since the announcement other influential names have jumped into the market. Venrock forged a partnership with cryptocurrency investor group CoinFund.

Venrock represents the venture capital arm of the more famous Rockefeller Foundation. Named after the renowned John D. Rockefeller, Venrock is seemingly following Soros' footsteps by entering the cryptocurrency space.

The very first major names to get involved with cryptocurrencies include the renowned, yet controversial Rothschild Investment Corporation in 2017, $210,000 worth of Bitcoin through the Greyscale Investment’s Bitcoin Investment Trust (GBTC). The GBTC trust is allows investors to gain regulated exposure to bitcoin price without the risk of owning bitcoin.

Rockefellers, Rothschilds, And Soros

CoinFund, in particular, is making a name for itself, much as Coinbase has been doing, as it too seeks to provide greater access and funding for new business models and decentralised networks. 

The comapy is set to provide the Rockefellers a ready-made list of unique cryptocurrencies the fund already has stakes in. Its team is comprised of experts from the financial world, including from Goldman Sachs, Amazon, and the MIT Digital Currency Initiative.

The CEO of Cardano, Charles Hoskinson, believes that the larger names in Finance entering the cryptocurrency markets will result in higher laxity in any regulation.

Speaking to Fortune, Venrock partner David Pakman revealed the company isn’t interested in short-term profits, but is looking to make profits based on the future of blockchain technology and the virtual currency industry. He noted that there are various cryptocurrency hedge funds in the market, and that this “is diferent,” as it “looks al ittle bit morel ike venture capital.”

Neutral Dollar Stablecoin Founder Explains How to Access Shared Liquidity Pools

Matthew Branton, the Founder and Chief Technology Officer at Neutral, a smart contract-enabled platform that provides various financial instruments for the cryptocurrency industry, has predicted that stablecoins will have “a tremendous impact on the future economy.”

Branton, a computer science graduate from Lafayette College, told CryptoGlobe that stablecoins offer “access to a digital currency that can enable payments, credit, and banking services which many people don't have access to.”

According to Branton:

[Stablecoins are] innovative digital assets [that] will help lower the barriers for [major financial] applications and [they will also] help people transact in value [systems] they are familiar with, such as the USD [and other fiat currencies.]

“Cultivating Healthy Dialogue to Help Build Wider Understanding” of Stablecoin Market

In response to a question about how the traditional financial system could be upgraded (in terms of both the regulatory framework and technological infrastructure) so that it can allow users to legally acquire stablecoins and other digital assets, Branton remarked:

In order to ensure that regulation evolves in tandem with advances in financial technology (FinTech), dialogue between regulators and innovators is essential. Cultivating a healthy dialogue among fintech project [developers], stakeholders and regulators of traditional finance will help build wider understanding of the benefits of stablecoins, and in turn accelerate the creation of regulation and infrastructure that accommodates stablecoins in the global economy.

Neutral Dollar Aims to Provide “Diversified Exposure” to Investors at “Lower Risk”

When asked what unique value proposition the Neutral Dollar stablecoin offers, which may not currently be available in the cryptoasset market, and how this is supposed to be relevant and useful, Branton said:

The Neutral dollar provides diversified exposure, presenting a lower risk alternative against other stablecoins (which contrary to their name, may not exhibit stability) in the market. In addition, the Neutral Dollar functions in a way that creates an additional layer that allows for shared liquidity amongst constituents stablecoins, a property that isn't inherent in their design. Given the fragmented and nascent nature of the crypto market structure right now, this solution is particularly relevant and unique in the marketplace.

Responding to a question about the potential impact he expects his company’s line of products to have on the cryptoasset market, Branton stated:

The impact of our products is to not only give end-users a better means to invest, trade, or hedge cryptoassets, but to also facilitate liquidity and engage in better portfolio management practices through our products. In order for the digital asset space to reach its full potential, the industry needs reliable financial instruments that take us beyond the limitations of fiat currencies, while also upholding the highest standards in stability and transparency. In the longer term, we plan to explore the launch of a suite of financial products to improve market infrastructure and activity.

Digital Asset Security Is “Quite Solid”

Commenting on how we can ensure the security of our assets, including stablecoins users might acquire, since the technology used to transact in these assets is highly technical, Branton noted:

Given that collateral is on-chain and smart contract based, security is decentralized in nature and quite solid. Asset safety is still the responsibility of the end-user — crypto-storage extends beyond the case of stablecoins and Neutral Dollar itself.

He added: “Ultimately, once a Neutral Dollar token is deployed on smart contract networks, it will function completely autonomously. The math and algorithms that govern its operation will operate independently of a centralized entity and in a transparent manner, and provide continuous services on the network.”