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| Here is a quick look at the hits from today's Inside Cryptocurrency newsletter: - Binance's new in-app Web3 wallet,
- Stablecoin issuer Circle's plans to go public in 2024,
- HSBC's upcoming digital asset custody service for institutional clients, and more.
Enjoy your reading! Doğa
p/dogayurduneri | |
| 1 | | Binance, the largest crypto exchange by trading volume, has announced it launched a new Web3 wallet within its native app at its Binance Blockchain Week conference in Istanbul, Turkey. The firm said its wallet would allow users to swap thousands of tokens across various blockchains, explore decentralized applications (dApps), transfer funds between exchange and wallet, and earn interest on their digital assets. More: - The product will support more than 30 blockchain networks.
- Users will be able to create a wallet for themselves through Binance's primary mobile app.
- The wallet will also aim to offer high security through multi-party computation (MPC) technology, which makes it self-custody.
- The MPC technology breaks users' private keys, which serve as exclusive passwords allowing users to access their crypto assets, into three smaller parts dubbed key shares.
- Two of these key shares are controlled by the wallet's owner, while one is stored by Binance.
- In this way, users can manage their private keys, having complete control of their assets while reducing personal financial risks from a potential breach or collapse.
- The wallet is currently not available to users in the U.S. as Binance caters to its customers there through a local unit.
Zoom Out: - Some of Binance's rivals, such as Coinbase, OKX, and Bitget, also offer Web3 wallets to their users.
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| 2 | | 
What the numbers say: A recent research report from the crypto data website CoinGecko has revealed the top ten Layer-2 blockchain networks by total value locked (TVL). Arbitrum led the list with $1.79B worth of digital assets on the network. In the top five, the Layer-2 solution was followed by Polygon, Optimism, dYdX, and Base, respectively. Arbitrum also became the only network on the ranking with TVL over $1B. What it means: TVL refers to a metric used to measure the total value of digital assets locked or staked in a platform. The higher TVL causes the platform to be perceived as more trustworthy and healthy by the investors. Relevance: On the other hand, Layer-2 networks improve speed and reduce transaction fees by removing transaction data from the main blockchain, compressing it, and then re-posting it to the original chain. The opportunities offered by these solutions caused many crypto firms to jump on the bandwagon over the last several months as they sought to reduce service fees while increasing the speed on their platforms. Most recently, a report citing people familiar with the matter disclosed that the U.S.-based crypto exchange Kraken started working on developing its own Layer-2 blockchain network. Earlier this year, rival crypto exchange Coinbase also launched an Ethereum-powered Layer-2 blockchain network dubbed Base, becoming the first publicly traded company to launch its own decentralized blockchain. Brands that should care: Binance, the largest crypto exchange by trading volume, similarly has its own blockchain network called BNB Smart Chain. The platform launched the network in 2020. | | | |
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| 3 | | HSBC, Europe's largest bank by total assets, has announced that it will launch a digital asset custody service for institutional clients in 2024. The banking giant has partnered with Swiss crypto custody firm Metaco to offer the new service. More: - The offering will initially involve only tokenized securities issued on third-party platforms, allowing institutional clients to store blockchain-based tokens representing traditional financial assets.
- However, the bank customers will not be able to store their cryptocurrencies or stablecoins through the upcoming service.
- The new custody product will aim to form a complete digital asset offering for corporate customers, complementing the bank's digital asset issuance platform, HSBC Orion, and tokenized physical gold service.
Zoom Out: - DZ Bank, the third-largest bank in Germany by total assets, also recently launched a crypto custody service for institutional clients in partnership with Metaco.
- Several other traditional financial institutions worldwide, including Standard Chartered, BNY Mellon, and Société Générale, similarly offer custody services for digital assets to their clients.
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| 4 | | Stablecoin issuer Circle has started considering the potential of going public in early 2024, according to a recent report from Bloomberg citing people familiar with the matter. Sources have pointed out that the firm is actively talking to its advisers about the feasibility of an initial public offering (IPO). More: - If Circle decides to proceed with an IPO, the privately-owned company will list its shares on a stock exchange, making them available for purchase by the general public.
- A Circle spokesperson said becoming a U.S.-listed public company has long been part of their strategic aspirations.
- The firm made a similar move last year, attempting to go public through a merger with Concord Acquisition Corp.
- At the time, the stablecoin issuer was valued at $9B, but the deal was later terminated.
- In its latest funding round in 2022, Circle raised money from several high-profile investors, including Goldman Sachs Group Inc., General Catalyst Partners, BlackRock Inc., Fidelity Management and Research LLC, and Marshall Wace LLP, with a valuation of $7.7B.
Zoom Out: - Circle is the issuer of USD Coin (USDC) and Euro Coin (EURC).
- USDC is currently the second-largest stablecoin, with its $24B market cap behind Tether (USDT).
- Stablecoins, whose value is pegged to another reference asset, mostly a fiat currency, are generally used by customers to trade with different cryptocurrencies without converting their funds back into fiat currencies.
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| 5 | | The U.S.-based crypto and stock trading platform Robinhood has announced its plans to launch crypto trading services in the European Union (EU). The firm also pointed out that it would start offering brokerage services to customers in the U.K. in the coming weeks. More: - The company's expansion plans were announced in its earnings report for Q3.
- Robinhood said the launch of the crypto trading service in Europe will follow the launch of its brokerage operations in the U.K.
- The announcement came nearly three months after Robinhood appointed Jordan Dane Sinclair as the new CEO of its U.K. operations.
- The firm's expansion to the U.K. was delayed multiple times, though it has been planning to launch its services in the country since at least 2019.
- The report also showed that Robinhood's crypto trading revenue experienced a decline for the last three consecutive quarters, falling to $23M with a 55% decrease from the same period last year.
Zoom Out: - On the other hand, Robinhood accelerated its global expansion plans following an increased regulatory crackdown by U.S. regulators on the crypto industry.
- Over the past year, many crypto trading platforms, including Robinhood, Binance, Coinbase, Bittrex, Gemini, and Kraken, came under heightened scrutiny in the U.S.
NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Robinhood. | | | |
| 6 | | American tech-focused investment firm Coatue Management has recently reduced its stake in NFT marketplace OpenSea by 90%. The move caused the platform's valuation to retreat to $1.4B. More: - Through the move, Coatue Management's investment in OpenSea declined to $13M from the previously allocated $120M.
- In January 2022, OpenSea raised $300M in a funding round co-led by Paradigm Capital and Coatue Management.
- At the time, the firm was valued at $13.3B.
- The move came amid a broader NFT market downturn, which saw that the floor prices of many high-profile NFT collections, including Bored Ape Yacht Club (BAYC), Azuki, Mutant Ape Yacht Club, and Pudgy Penguins, experienced a strong decline.
- The downturn further caused many NFT-related companies, including Yuga Labs, DapperLabs, Magic Eden, Candy, Metaplex, Autograph, and SuperRare, to conduct mass layoffs.
- OpenSea also recently reduced its headcount by 50%, citing a shift in the focus to build a more nimble and ultimately better version of the platform.
Zoom Out: - In addition to OpenSea, Coatue Management marked down its investment in the crypto payment service provider MoonPay by 90%, too.
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- Coinbase, the largest U.S. crypto exchange, has added four national security experts to its Global Advisory Council.
- Digital Prime Technologies has launched a new crypto lending service dubbed Tokenet for institutional clients in partnership with Anchorage Digital.
- An attendant of the NFT firm Yuga Labs' recent Ape Fest in Hong Kong has sent a legal notice to the company after suffering from an eye infection due to the event.
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 | Staff Writer | | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. | | This newsletter was edited by Aaron Crutchfield | |
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