October 26, 2022
Photo: BNY Melon
Good morning! BNY Mellon is getting into crypto. But as you might expect from America’s oldest bank, it’s not rushing into it.
Caroline Butler joined the Bank of New York Mellon as CEO of custody services two years ago to ensure that the assets of the country’s oldest bank’s clients are safe and secure.
That job could soon become much more challenging: The bank announced it will start holding crypto assets for select clients, marking a major move by a traditional financial services giant into the controversial crypto market.
Institutional investors still want in on crypto despite the crypto crash, prompting the bank’s entrance into the space. Butler told Protocol’s Ben Pimentel that the bank has been looking for a way into digital assets for two years, with the spike in demand being the catalyst to actually do it.
BNY’s move doesn’t come without challenges. Butler said heightened cybersecurity is crucial to keeping the bank’s digital assets safe: “[U]nlike the traditional space, if you lose the keys to digital assets, you effectively lose the assets.”
Entering this space can’t be rushed. Though the fintech industry criticized traditional banks for their pace, BNY is going slower to be “measured and purposeful, bringing our capabilities to market in a very disciplined form.”
The offshore wind industry may be threatening the survival of one of the most endangered whale species on Earth, Protocol’s Lisa Martine Jenkins writes.
Boat traffic and offshore infrastructure need to skyrocket in order to reach the Biden administration’s goal of developing 30 gigawatts of offshore wind by 2030.
Startups are working to find solutions. Vineyard Wind, an offshore wind developer, and Greentown Labs, a startup incubator, created an accelerator program for companies developing tech to protect marine life.
The government wants to help, too. The Department of Energy and the state of Maryland have funded marine mammal research group SMRU Consulting for its work on a “coastal acoustic buoy for offshore wind.”
The risk to right whales shows the need to balance mitigating climate change and conservation — and how people are trying to use tech to keep the scales stable. Whether these efforts are enough remains to be seen.
Brad Olson spent six years growing Peloton’s subscription business into a common household product. Now he wants to “do it all over again.” Last month, Olson became CEO of Sollis Health, a subscription-based concierge health care startup that gives members 24/7 access to doctors, ER, and urgent care with no wait times.
Olson is a first-time CEO, but his last two roles at Peloton prepared him “uniquely” to run Sollis, he told me in an interview.
Leaving Peloton was less about Peloton itself, and more about scratching “the itch to join an earlier-stage company,” Olson said.
But first-mover advantage doesn’t last forever, he told me. Keeping up a successful growth subscription-based business requires putting members first. “If you make your members your North Star, and put them at the center of every decision, you can’t go too wrong,” he said. “It’s this sort of virtuous cycle: If it’s good for the members, it's good for the business, it's good for the employees, because it presents growth and opportunity.”
Read more: How Brad Olson decided to leave Peloton.
Many business leaders aren’t sure where to begin when it comes to migrating to the cloud. To help organizations adapt to this revolution, Capital One launched Capital One Software, a new enterprise B2B software business focused on providing cloud and data management solutions.
Transportation secretary Pete Buttigieg said EV adoption will require drivers to accept shorter ranges:
Investor Chris Sacca said that climate investing is “recession proof”:
SAP has reached a “tipping point” in cloud growth and profit, CEO Christian Klein said:
The iPhone will switch to USB-C as a result of a recent EU ruling, Apple’s Greg Joswiak said, but he doesn’t sound thrilled about it:
AWS executive Pravin Raj is leaving Amazon. Raj is one of several of the cloud giant's top leaders named in a discrimination and harassment lawsuit by a former employee.
Alexander Höptner is stepping down as CEO of crypto exchange BitMex after around two years with the company. Stephan Lutz has been appointed as interim CEO.
EV startup Faraday will cut salaries by 25% to preserve cash. The cuts, lasting from Nov. 1 to the end of the year, come as the company seeks funding to release its first car.
Memory chipmaker SK Hynix is cutting investment by more than 50% due to "unprecedented deterioration" in demand for its hardware.
Apple said it would make new investments in wind and solar projects in Europe, as well as call on its suppliers to decarbonize production of its products.
Elon Musk plans to close the Twitter deal by Friday, complying with a Delaware court ruling, according to Reuters.
Amazon is testing Venmo. All U.S. customers will be able to use the service by Black Friday.
India fined Google $113 million for anticompetitive practices for restricting app developers in the country from using third-party billing or payment processing services.
Twitter is losing some of its heavy-hitter users. At least, if you count heavy hitters as those who account for less than 10% of monthly overall users but generate 90% of all tweets and half of global revenue.
Alphabet’s earnings fell short of Wall Street’s expectations as the digital ad industry continues trending downward.
Microsoft reported its slowest revenue growth in five years. Weakening device demand hasn’t helped, but even cloud revenue was lower than anticipated.
Amazon warehouse workers in Southern California abandoned their plans for a union election following the labor union’s defeat in New York last week.
Uber drivers in New Zealand won a class-action case declaring them employees rather than independent contractors.
Deepfakes of anyone from Tom Cruise to Elon Musk have started to make their way into advertising. While some of the ads are parodies, the continued evolution of deepfake software could create a legal gray area as celebrities navigate new forms of unauthorized use of their likeness. “We’re having a hard enough time with fake information,” one expert told The Wall Street Journal. “Now we have deepfakes, which look ever more convincing.”
The flexibility of the cloud helps companies like Capital One unlock access to their data with performance that can scale instantly. But this flexibility and scale can also create a unique challenge for organizations and users who are not proficient in cloud optimization.
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