Latest news with #Luno
IOL News
6 days ago
- Business
- IOL News
Luno launches tokenised blue-chip US stocks for South Africans
Luno is reshaping the investment landscape for South Africans by launching tokenised blue-chip US stocks, enabling affordable and hassle-free access to global markets. Discover how this innovation empowers local investors with unprecedented opportunities. Image: File. In a significant move towards financial inclusivity, leading crypto platform Luno has announced the launch of international tokenised stocks and exchange-traded funds (ETFs) that will be available for investment from early August 2025. This groundbreaking offering allows South Africans to gain seamless access to over sixty of the world's most valuable US-listed companies and indices, including tech giants like Apple, Alphabet, and NVIDIA—all without the hassles of transferring funds offshore or waiting for US trading hours. "Until now, access to global financial markets has been locked behind red tape and legacy systems," said Christo de Wit, country manager for South Africa at Luno. "With tokenised stocks, we're offering South African investors easy access to global investments any time of the day or night." This pioneering initiative not only positions Luno as a frontrunner in the realm of tokenised stocks but also highlights the company's commitment to transforming financial access for the African market. While international exchanges have begun to introduce similar products, Luno is the first to bring them to African investors, representing a significant milestone. A breakthrough in financial access Luno's innovative solution addresses the barriers that investors in emerging markets often encounter. Traditional investment options can be mired in numerous fees, frustrating waiting periods, and intricate processes. By offering tokenised stocks, Luno alleviates these challenges while ensuring security and adherence to regulatory standards. Investors can conveniently purchase tokenised stocks directly in South African rands, eliminating the need for foreign currency conversions or incurring foreign exchange fees. Furthermore, instant settlement options mean there are no lock-in periods, ensuring that assets remain readily liquid. With investments starting as low as R20, South Africans can now afford to buy fractional shares in leading global companies. For instance, instead of spending nearly R4 000 for a full Apple share, investors can opt for a fraction of that share, democratizing access to some of the world's most sought-after equities. "The introduction of tokenised stocks builds on Luno's mission to create a fairer, more inclusive financial system, one built for the modern African investor," added de Wit. How tokenised stocks work The stocks offered through Luno's platform are fully backed by actual shares held in regulated custody, thanks to the company's strategic partnerships with global players such as Kraken's xStocks and Backed Finance. This collaboration ensures that users benefit from a secure and trustworthy infrastructure. Tokenised stocks act as digital representations of conventional shares, empowering investors to buy and sell portions of companies via blockchain technology. "This represents a fundamental shift in how we think about investing," explained de Wit. "We're not just digitising old processes – we're reimagining what's possible when you combine improved technology with investor needs." For now, the tokenised stocks will be exclusively available to customers in South Africa, with plans to expand the offering to Nigeria and other African countries in the near future. BUSINESS REPORT
Finextra
6 days ago
- Business
- Finextra
Luno launches tokenised blue-chip US stocks for South Africans
Leading crypto platform Luno today announced the launch of international tokenised stocks and ETFs, which will be available for investment in early August 2025. 0 Through Luno, South Africans will have easy access to more than sixty of the world's most valuable US-listed companies and indices, without needing to transfer funds offshore or wait for US trading hours. This first-of-its-kind offering in South Africa enables Luno customers to invest in the largest global equities like Apple, Alphabet, NVIDIA, and the S&P 500, using South African rands without the restrictions of US market trading hours. "Until now, access to global financial markets has been locked behind red tape and legacy systems," said Christo de Wit, country manager for South Africa at Luno. "With tokenised stocks, we're offering South African investors easy access to global investments any time of the day or night." This positions Luno as a global frontrunner in tokenised stocks. While major international exchanges have launched similar offerings in recent weeks, Luno is the first to pioneer this for African markets. A breakthrough in financial access Luno is addressing challenges faced by investors in emerging markets, where multiple layers of fees, significant waiting times, and complex processes often limit traditional investment options. By offering tokenised stocks, Luno removes these barriers while maintaining security and regulatory compliance. Customers can buy Luno's tokenised stocks directly in rand, without needing to convert foreign currency or pay foreign exchange fees. Instant settlement is also available, with no lock-in periods, meaning assets remain liquid. Additionally, investors can access tokenised fractional shares from as little as R20 in the world's most valuable companies. Instead of paying almost R4,000 for an Apple share, for instance, you can buy just a portion, making global investing affordable for all South Africans. 'The introduction of tokenised stocks builds on Luno's mission to create a fairer, more inclusive financial system, one built for the modern African investor,' explains de Wit. How tokenised stocks work The tokenised assets are fully backed by real shares held in regulated custody through Luno's integration with global partners, including Kraken's xStocks and Backed Finance, ensuring trusted infrastructure for users. Tokenised stocks represent digital versions of traditional shares, allowing investors to buy and sell portions of companies through blockchain technology. "This represents a fundamental shift in how we think about investing," explained de Wit. "We're not just digitising old processes - we're reimagining what's possible when you combine improved technology with investor needs." Tokenised stocks will be available to customers in South Africa, with plans to expand to Nigeria and other African markets.
Daily Maverick
21-07-2025
- Business
- Daily Maverick
Crypto Corner: Reading the crypto currents that caused the bitcoin wave
An institutional embrace of crypto has shifted the tide for bitcoin, but beware the choppy waters ahead. Bitcoin hit another all-time high last week, but it's not just digital magic making these numbers climb. There are real forces at play. Large institutions, investment firms and corporations are swirling in the bitcoin waters that have been chummed up with exchange-traded funds (ETFs) and direct purchases, creating what analysts call 'sustained upward pressure'. This institutional embrace has shifted the tide. Unlike previous rallies driven by retail enthusiasm, this swell lacks the signs of public Fomo – no soaring Google searches, no crypto apps shooting up the download charts. The maths is simple: when fewer bitcoins remain on exchanges (because institutions are holding them) and demand stays strong, prices rise. In a happy coincidence, US lawmakers have reviewed major cryptocurrency legislation. When the world's largest economy signals that it is taking crypto seriously, markets respond. Beyond the crypto-specific factors, bitcoin is benefiting from the US Federal Reserve's low interest rates, and easier monetary policies are pushing investors towards riskier assets in search of higher returns. Add a weakening US dollar into the mix and bitcoin becomes increasingly attractive as an alternative store of value. Despite the euphoria, seasoned analysts are flagging potential rough seas. One clear signal is 'whale activity' – large bitcoin holders have been depositing substantial amounts onto exchanges, often a sign that they intend to sell (dump). What stirred the waters was news of an ancient 'Satoshi-era' whale who had held 80,000 bitcoins since 2011 and recently transferred coins worth more than $4.6-billion. Such massive profit-taking can trigger significant corrections. Christo de Wit, country manager for South Africa at Luno, offers a crucial reality check. He points out that the Relative Strength Index shows overbought levels – typically a warning sign of incoming volatility. 'We encourage users to invest responsibly and only what they can afford to lose,' De Wit warns. This might seem like standard disclaimer language, but it's worth heeding. DM
Daily Maverick
16-07-2025
- Business
- Daily Maverick
Bitcoin pips Amazon to become world's fifth-largest asset in record week
At a market cap of just above two trillion dollars, Bitcoin is probably never going to upset the global asset value pecking order, but this latest surge makes it more valuable than Amazon – with Apple in its sights. This week, Bitcoin delivered a series of electrifying performance highs, including hitting a new all-time high of R2,203,968 and leapfrogging Amazon to become the fifth-largest asset by valuation. The current rally is not merely speculative. It's supported by several fundamental shifts in the market. Increased institutional buying is a primary driver, with large investment firms and corporations actively accumulating Bitcoin through exchange-traded funds (ETFs) and direct purchases. As Christo de Wit, country manager for South Africa at Luno, puts it: 'The market dynamics we're seeing today are fundamentally different from previous cycles. Institutional participation has matured significantly, and we're seeing reduced selling pressure as fewer bitcoins remain on exchanges, indicating strong holder confidence.' This sustained demand has created considerable upward pressure. Kind, soft regulation Beyond institutional interest, positive regulatory developments are playing a crucial role. This past week, dubbed 'Crypto Week' in Washington, saw lawmakers reviewing major cryptocurrency legislation, adding significant regulatory momentum and boosting market confidence. 'Investors remain optimistic about the US government's increasingly supportive stance toward cryptocurrency, which has boosted confidence in Bitcoin's long-term prospects,' De Wit explains. 'This regulatory clarity, combined with continued institutional adoption, is creating a foundation for sustained growth.' Even President Donald Trump's endorsement of these efforts has reinforced sentiment. The broader economic environment also provides tailwinds. Low interest rates and easier monetary policies from the US Federal Reserve encourage investors to seek higher returns in riskier assets like Bitcoin, while a weakening US dollar makes Bitcoin more attractive as an alternative store of value. Technical market forces, such as a significant short squeeze, which forced traders betting against Bitcoin to buy back their positions, have also amplified its upward momentum. Navigating the volatility Remain calm. After reaching an all-time high, Bitcoin retreated, with its price dropping 5% in today's trading. This volatility is partly due to profit-taking by large holders (read: 'whales). Data from CryptoQuant indicates a sharp rise in whale activity on Binance, with large investors depositing around 1,800 BTC to secure gains or hedge positions, creating 'sell-side' pressure. Even a Satoshi-era whale that lay dormant for 14 years, transferred more than R80-billion worth of Bitcoin. The investor, who acquired BTC when it was below R550, has seen a more than 2.4 million percent increase in their holdings. Such massive movements to platforms like Galaxy Digital suggest an intent to offload a significant portion of their stash, which could impact on market dynamics. The market is also keenly awaiting tomorrow's US Consumer Price Index (CPI) data, which could influence the Federal Reserve's monetary policy direction and expectations for future rate cuts. Beware of gluttony Technical indicators like the Fear and Greed Index have moved firmly into 'Greed' territory, and the Relative Strength Index (RSI) shows overbought levels – typically warning signs of incoming volatility. 'While we're excited about Bitcoin's performance, we always encourage our users to invest responsibly and only what they can afford to lose,' cautions De Wit. 'The cryptocurrency market remains volatile, and past performance doesn't guarantee future results'. But maybe the most profound development this week is Bitcoin's climb to become the world's fifth-largest global asset by market capitalisation. Its market cap swelled to $2.4-trillion, allowing BTC to flip Amazon. This achievement is another step in Bitcoin's continued evolution from a speculative asset to a mainstream financial instrument. While it is a monumental leap, Bitcoin is still tiny when compared with established asset classes like gold, equities, real estate and treasury bonds. This shows immense potential for further growth, especially if retail buyers are gripped by Fomo (fear of missing out). While the path ahead may be volatile and marked by profit-taking and technical corrections, Bitcoin's new status as a top-five global asset is a reason to celebrate. DM
Borneo Post
15-07-2025
- Business
- Borneo Post
Bitcoin surpasses RM510,000 on Luno, as institutional demand continuously grows
The strong demand from investment firms and companies for Bitcoin exposure, be it direct purchases or ETFs, has created a recent uptick in the price. — AFP photo PETALING JAYA (July 15, 2025) : Bitcoin, the first and largest cryptocurrency by market capitalisation, has hit over half a million ringgit on Luno, as institutional demand continuously grows. The strong demand from investment firms and companies for Bitcoin exposure, be it direct purchases or ETFs, has created a recent uptick in the price. This is coupled by the US Federal Reserve's more dovish tone. This environment has supported greater investor risk appetite, benefifiting alternative assets like Bitcoin. In parallel, the rally triggered a short squeeze of over US$200 million, as traders who had bet against the asset were forced to buy back their positions, further accelerating the price momentum. Luno's country manager for Malaysia, Scarlett Chai, said, 'The crypto market has evolved so much in the past couple of years, largely led by Bitcoin. 'Today, despite the scepticism of the asset class, Bitcoin is the fififth largest asset by market cap after Apple – one of the world's most recognisable brands'. Bitcoin's bullish momentum has also led to a rally in other coins, known as altcoins, including Stellar (XLM), Alogrand (ALGO), and Hedera (HBAR), which have seen over a 50 per cent price increase in a week. These are among the altcoins Luno has proposed to the Securities Commission Malaysia that were aligned with the regulator's requirements. Of the three coins above, ALGO and HBAR were launched this year, part of Luno's effort in expanding the list of tradable digital assets in the country. Chai added, 'We've not seen a demand like this from institutions. Investors are optimistic about the US government's supportive stance toward crypto, which makes them confifident about Bitcoin's future'. Chai also cautioned investors of a possible rise in investment scams taking advantage of Bitcoin's reignited popularity. 'Steer clear of any investment schemes that seem too good to be true, especially if they're social media advertisements promising good returns. 'Regulated crypto exchanges will never engage third parties to facilitate the investment or trade on your behalf', she concluded.
