Introduction
Standard Chartered's ventures arm, SC Ventures, has partnered with SBI Holdings, a Japanese conglomerate, to establish a digital asset joint venture in the United Arab Emirates (UAE). This joint venture aims to invest in companies across the digital assets spectrum, including market infrastructure, risk and compliance tools, defi, tokenization, consumer payments, and the metaverse.
Collaboration between SC Ventures and SBI Holdings
SC Ventures, the ventures arm of Standard Chartered, has announced its collaboration with SBI Holdings to establish a Digital Asset Joint Venture investment company in the UAE. The two companies plan to capitalize the vehicle with $100 million. The joint venture's primary focus will be on investing in various companies involved in digital assets, ranging from market infrastructure to consumer payments and the metaverse.
Reasons behind the Partnership
SC Ventures CEO Alex Manson highlighted the UAE's growing status as a fintech hub in the digital asset space due to its robust infrastructure and talent pool. The joint venture aims to leverage SC Ventures' expertise in digital assets gained through ventures like Zodia Custody and Zodia Markets, as well as its investments in companies like Ripple and Metaco. The Digital Asset Joint Venture plans to make global investments ranging from seed to Series C funding.
Positive Outlook from SBI Holdings
SBI Holdings CEO Yoshitaka Kitao expressed his support for the partnership, emphasizing the strategic relationship between SBI Holdings and SC Ventures. He mentioned previous investments in SC Ventures' portfolio companies, including Solv, Zodia Custody, and Myzoi.
Collaboration with Dubai International Financial Centre (DIFC)
In May, Standard Chartered signed a memorandum of understanding with the Dubai International Financial Centre (DIFC) to collaborate in the digital asset space, specifically in digital asset custody. Salmaan Jaffery, Chief Business Development Officer at the DIFC, commended SC Ventures and SBI Holdings for their efforts to shape the future of finance through their Digital Asset Joint Venture in the DIFC.
Conclusion
The partnership between Standard Chartered's SC Ventures and SBI Holdings to establish a digital asset joint venture in the UAE signifies their commitment to the growing digital asset industry. With a focus on investing in various areas of the digital assets spectrum, this joint venture aims to contribute to the development of the digital asset ecosystem in the UAE and globally.
Frequently Asked Questions
What are the benefits to having a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's not subject to tax until you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types available. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type of account might be a good choice if your goal is to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This eliminates the need to constantly make deposits. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are also disadvantages to this type of investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
Insurance will be required if you would like to keep your cash out of banks. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit how many ounces you can keep. Others allow you the freedom to choose your own weight.
You'll also need to decide whether to buy physical gold or futures contracts. The price of physical gold is higher than that of gold futures. Futures contracts allow you to buy gold with more flexibility. They let you set up a contract that has a specific expiration.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. The policy does not cover natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
A qualified custodian is required to help you open a Gold IRA. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians are not allowed to sell your assets. Instead, they must retain them for as long and as you require.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. Also, you should specify how much each month you plan to invest.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will then review your application and mail you a letter of confirmation.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Is gold a good investment IRA?
If you are looking for a way to save money, gold is a great investment. You can diversify your portfolio with gold. There is much more to gold than meets your eye.
It has been used throughout the history of currency and remains a popular payment method. It is often called “the most ancient currency in the universe.”
But unlike paper currencies, which governments create, gold is mined out of the earth. It is very valuable, as it is rare and hard to create.
The price of gold fluctuates based on supply and demand. When the economy is strong, people tend to spend more money, which means fewer people mine gold. As a result, the value of gold goes up.
On the flipside, people may save cash rather than spend it when the economy slows. This causes more gold to be produced, which lowers its value.
It is this reason that gold investing makes sense for businesses and individuals. If you have gold to invest, you will reap the rewards when the economy expands.
You'll also earn interest on your investments, which helps you grow your wealth. Plus, you won't lose money if the value of gold drops.
Is it a good retirement strategy to buy gold?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion bars are the most popular way to invest in gold. You can also invest in gold in other ways. Research all options carefully and make an informed decision about what you desire from your investments.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you require cash flow, gold stocks can work well.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs can include stocks of precious metals refiners and gold miners.
Can I own a gold ETF inside a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
Also available is an Individual Retirement Annuity. An IRA allows for you to make regular income payments during your life. Contributions to IRAs don't have to be taxable
Are You Ready to Invest in Gold?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you are unsure of which option to invest in, consider both.
Gold offers potential returns and is therefore a safe investment. Retirement investors will find gold a worthy investment.
Most investments have fixed returns, but gold's volatility is what makes it unique. Its value fluctuates over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is less difficult to store than stocks or bonds. It can also be carried.
As long as you keep your gold in a secure location, you can always access it. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. Gold usually rises when the stock market falls.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Don't buy too many at once. Begin by buying a few grams. Add more as you're able.
It's not about getting rich fast. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
bbb.org
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
irs.gov
How To
Tips for Investing Gold
Investing in Gold remains one of the most preferred investment strategies. Because investing in gold has many benefits. There are many options for investing in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
Before you purchase any type or gold, here are some things to think about.
- First, you must check whether your country allows you to own gold. If it is, you can move on. If not, you may want to consider purchasing gold from overseas.
- You should also know the type of gold coin that you desire. You have the option of choosing yellow, white, or rose gold.
- Thirdly, you should take into consideration the price of gold. It is better to start small, and then work your way up. It is important to diversify your portfolio whenever you purchase gold. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Last but not least, remember that gold prices fluctuate frequently. Keep an eye on current trends.
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By: Kevin Helms
Title: Standard Chartered's SC Ventures Partners With SBI to Establish Digital Asset Joint Venture in UAE
Sourced From: news.bitcoin.com/standard-chartereds-sc-ventures-partners-with-sbi-to-establish-digital-asset-joint-venture-in-uae/
Published Date: Sat, 11 Nov 2023 07:30:51 +0000
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