What’s Behind the Latest Surge in Bitcoin? Little Consensus and Lots of Noise (WSJ)
Bitcoin is in the midst of another head-scratching rally. The world’s largest cryptocurrency began climbing late last week after spending much of the summer stuck around $26,000. It rose above $30,000 over the weekend, briefly topped $35,000 in recent days to touch its highest level since May 2022, and is now hovering around $33,800. As is the case with most debates in the crypto world, there is little consensus about what’s behind the sudden surge.
JPMorgan’s JPM Coin Payment System Handles $1 Billion in Daily Transactions (The Block)
JPMorgan processes a substantial daily volume through its JPM Coin payment system, revealed Takis Georgakopoulos, the company's global head of payments. "Today we move $1 billion every day through JPM Coin for a number of large companies," Georgakopoulos told Bloomberg Television earlier today. While this figure represents a small fraction of the $10 trillion in payments that JPMorgan handles daily through its traditional platforms, it is still noteworthy — and demonstrates that JPM Coin has gained significant traction in recent months.
Solana Adds Incubator to Spur Growth and Woo Founders Away From Rival Chains (The Block)
Solana Labs is launching an incubator aimed at convincing startup founders to choose Solana as their blockchain of choice. "Incubator programs like this are critical to the success of start-ups in Web3. Blockchain startups face a much more difficult journey than traditional tech startups because the space is, in many ways, still young and still developing," Solana Labs Product Manager Emon Motamedi said in a statement.
Binance Founder CZ Loses $12 Billion on Crypto-Trading Slump (Bloomberg)
Sam Bankman-Fried, on trial for fraud in New York, isn’t the only crypto founder feeling the heat. The Bloomberg Billionaires Index slashed its estimate of revenues at crypto exchange Binance by 38% after data showed volumes at the firm declined this year. That wiped $11.9 billion from the fortune of Binance’s founder, Changpeng Zhao, known as CZ, dropping him to $17.2 billion.
Circle Partners With Taiwan’s BitoGroup and FamilyMart to Expand Presence (The Block)
Circle, the issuer of the USDC stablecoin, has partnered with Taiwanese crypto exchange BitoGroup and Taiwan FamilyMart to expand its presence in the market. Circle said today in a statement that the trio is launching a “points-to-crypto” service to allow users to convert their FamilyMart loyalty points into cryptocurrencies such as USDC. “With the introduction of USDC in the enhanced ‘Points-to-Crypto’ service, we aim to empower the Taiwanese community to participate in the digital economy seamlessly and support Taiwan’s stance in embracing digital fintech innovations,” Raagulan Pathy, vice president of Asia Pacific for Circle, said in the statement.
Billionaire Ken Griffin's Citadel Securities Denies 'Ridiculous' Claim That It Tanked Do Kwon's Terraform (CoinDesk)
Billionaire Ken Griffin's trading firm, Citadel Securities, denied a claim from Terraform Labs that it was behind the collapse of the algorithmic stablecoin terraUSD (UST) in May last year. Earlier this year, the U.S. Securities and Exchange Commission (SEC) charged Terraform Labs and its co-founder and former CEO Do Kwon with fraud, selling unregistered securities, selling unregistered security-based swaps and other related claims. Federal prosecutors in New York also charged Do Kwon with fraud hours after he was arrested by police in Montenegro.
SBF to Testify in Fraud Trial After Onslaught From Inner Circle (Bloomberg)
Sam Bankman-Fried will take the stand to defend his actions in the lead-up to the collapse of his digital-asset empire, after taking a beating from former colleagues who described him as the mastermind of a years-long scheme to defraud FTX customers and investors. Bankman-Fried’s lawyers said on a conference call with the judge Wednesday that their client will testify at his fraud trial after the prosecution finishes its case. The 31-year-old could take the stand, barring a last-minute change, as soon as Thursday afternoon.
Mastercard Teams Up With MoonPay for Web3 Push (CoinDesk)
Mastercard has teamed up with MoonPay, a cryptocurrency and non-fungible tokens (NFTs) payments app, to explore how the blockchain-based Web3 world can connect with and build loyalty among consumers, the companies said at the Money20/20 event in Las Vegas. Card networks like Visa and Mastercard have been busy around Web3, working on areas as diverse as stablecoin-based payments and removing gas fees from Ethereum transactions. Most recently, Mastercard was revealed to be working with non-custodial wallet firms MetaMask and Ledger, according to a Web3 workshop presentation.
Senator Elizabeth Warren Finds Support in US House for Effort to Tackle Crypto-Financed Terrorism (The Block)
U.S. Rep. Sean Casten, D-Ill., said he plans to introduce a bill to strengthen bank secrecy act requirements for cryptocurrency following reports that Hamas raised millions of dollars through crypto ahead of attacks in Israel earlier this month. That legislation will be similar to a bill Sen. Elizabeth Warren, D-Mass., introduced, Casten told the House Financial Services Committee's panel on illicit finance and national security on Wednesday during a hearing.
Elliptic Says Scale of Crypto-Based Terrorism Funding Is Being Misrepresented (The Block)
Blockchain forensics firm Elliptic said Wednesday that recent figures being used to portray the scale of crypto fundraising by Hamas are being misrepresented, with little actual evidence that terrorist groups are using digital currencies with much success. While Hamas first solicited bitcoin donations in 2019, it stopped all public-facing crypto fundraising in April, citing "concern about the safety of donors and to spare them any harm," Elliptic said in a blog post. Since the recent attacks in Israel on Oct. 7, the firm said only $21,000 in fresh crypto donations have arrived, with much of it already frozen.
Polygon’s POL Cryptocurrency Contracts Deployed on Ethereum Mainnet (The Block)
Polygon Labs has deployed contracts for the project’s next-generation cryptocurrency, POL, on the Ethereum mainnet following a testnet deployment earlier this month. The development comes after a series of now-approved Polygon Improvement Proposals in September that detailed the specifications for the POL token. This cryptocurrency is an evolution of MATIC and aims to align with the architecture of the upcoming Polygon 2.0 upgrade.
Grayscale Partners With FTSE Russell for New Crypto Indexes Business (CoinDesk)
U.S. crypto asset manager Grayscale Investments has entered into a partnership with FTSE Russell – the index division of London Stock Exchange parent LSE Group – to create a new crypto indexes business. They revealed five indexes that track the performance of different crypto sectors, including currencies, smart contract platforms, financials, consumer and culture, and utilities and services, the companies announced Tuesday.
Co-Founder of Paradigm, a Top Crypto Investor, Steps Down as Managing Partner to Focus on Science (CoinDesk)
Fred Ehrsam, co-founder of large crypto investment firm Paradigm, has stepped down as managing partner at the company and will act as a general partner going forward, he announced in a Tuesday post on X (formerly Twitter). "This change allows me to carve out some time to explore areas of science that are of personal passion for me," he wrote. "I’ll continue to work with our investing & research teams, work with portfolio companies, and fight for good crypto policy, while focusing less on the day to day management of the firm."
Binance Reportedly Behind New Hong Kong Crypto Exchange Pursuing License (Blockworks)
Binance appears to be the driving force behind a recently launched crypto exchange in Hong Kong. South China Morning Post reported on Wednesday that the exchange HKVAEX was established in Hong Kong as an independent entity under BX Services Limited. Despite not having similar names or a publicly acknowledged connection, they share resources, the report said, citing sources. Notably, Binance and HKVAEX’s logos bear resemblance, and Binance’s official accounts, along with CEO Changpeng Zhao, are among HKVAEX’s few followers on social media platform X.
Digital Currency Group Posts 23% Climb in Third-Quarter Revenue (Bloomberg)
Digital Currency Group reported a 23% climb in revenues and said it had repaid some of the debt owed to its bankrupt subsidiary Genesis. Consolidated revenue rose to $188 million in the third quarter compared with $153 million in the same period a year earlier, according to a letter to investors seen by Bloomberg News. The company said EBITDA — or earnings before interest, taxes, depreciation and amortization — came in at $69 million.
Bitcoin Spot ETFs Could See Inflows of $14.4B in First Year, Galaxy Says (CoinDesk)
Spot bitcoin (BTC) exchange-traded funds (ETFs) could attract at least $14.4 billion of inflows in the first year of issuance, crypto fund Galaxy Digital said in a research note on Tuesday. An ETF could be a better investment vehicle for investors compared to currently offered products, such as trusts and futures, which hold over $21 billion in value, the fund said. The inflows could ramp up by $27 billion by the second year and $39 billion by the third year, it added.
BlackRock’s Spot Bitcoin ETF Appears on DTCC Website With Ticker IBTC (The Block)
BlackRock's highly anticipated spot bitcoin ETF, the iShares Bitcoin Trust, has made an appearance on a list maintained by the Depository Trust and Clearing Corporation, which Nasdaq says provides post-trade clearance, settlement, custody and information services. While still awaiting approval from the Securities and Exchange Commission, along with other proposed spot bitcoin funds, the DTCC lists the BlackRock fund's ticker as IBTC.
Binance’s UK Chief Departs as Regulatory Pressure Mounts (The Block)
Jonathan Farnell, a compliance specialist who was Binance’s UK chief before taking over Bifinity, a subsidiary, has left the business — becoming the latest in a string of executive departures. UK corporate filings and Farnell’s career history on LinkedIn suggest he resigned from his post at Binance Markets Limited in late September. Farnell had already stepped down from a senior compliance role at Binance Europe in June.
China’s Digital Currency Used to Settle International Crude Oil Deal: Report (The Block)
China's e-CNY digital currency was used to settle a large international crude oil transaction, according to a report. The China Daily reported the transaction was for one million barrels of crude oil purchased by PetroChina on the Shanghai Petroleum and Natural Gas Exchange (SHPGX). The SHPGX announced the digital currency transaction on Friday but did not disclose the identity of the seller or the value of the trade.
North America Leads World in Crypto Usage, Chainalysis Says (The Block)
The U.S. drives the greatest share crypto activity in the world with over $1 trillion in transaction volume between July 2022 and June 2023, according to a new report from Chainalysis. Together with Canada, the region accounts for almost one-fourth of global transaction volume. Large institutional investors are the key driver of the activity, with 76.9% of transaction volume in the region made up by transfers of $1 million or more, Chainalysis said in a blog post on Monday.
Hong Kong Reverses Stance on Spot-Crypto, ETF Investing, With a Catch (CoinDesk)
Hong Kong's financial regulator has extended earlier guidance that limited the sale of spot products to professional investors, allowing intermediaries to offer services to wider range of clients. "The policy is updated in light of the latest market developments and enquiries from the industry seeking to further expand retail access through intermediaries and to allow investors to directly deposit and withdraw virtual assets to/from intermediaries with appropriate safeguards," the Securities and Futures Commission (SFC) said in a circular on Friday.
Crypto Shareholder Requirements Set Out by EU Banking Regulators (CoinDesk)
Crypto company shareholders with a more than 10% stake will be vetted for previous convictions or sanctions under bank-style rules proposed by EU regulators Friday. The rules come as high-profile crypto industry executives including FTX’s Sam Bankman-Fried, Celsius’ Alex Mashinsky and Binance’s Changpeng “CZ” Zhao fight U.S. charges that they have misled or defrauded customers, or failed to comply with federal securities laws.
Hong Kong Regulator Updates Policy for Virtual Asset Activities (The Block)
Hong Kong's Securities and Futures Commission has updated its regulatory framework with two additional investor protection measures. The updates are aimed at intermediaries that are interested in providing virtual asset-related products to investors. Specifically, the new investor protection measures are for virtual assets categorized as complex products. As an illustration of such a complex product, the regulatory body provides the example of an overseas virtual asset, non-derivative exchange-traded fund.
DTCC Acquires Blockchain Startup Securrency to ‘Fast-Track’ DeFi Efforts (The Block)
DTCC — the financial services company that sits behind Wall Street's trades — announced the acquisition of blockchain technology firm Securrency, the firm said in a press release. According to the announcement, both companies have inked an agreement for the acquisition, which will lead to Securrency becoming a wholly-owned subsidiary of DTCC and subsequently operating under the name DTCC Digital Assets. Led by former State Street crypto executive Nadine Chakar, Securrency provides a platform enabling clients to tokenize real-world assets through what it touts as "the industry's most comprehensive, patented compliance technology."
Sam Altman's Worldcoin Switches Orb Rewards Plan to Boost WLD Supply (CoinDesk)
The ambitious and controversial Worldcoin (WLD) project will switch operator rewards from USDC stablecoins to its WLD tokens on October 24, increasing the tokens’ circulating supply in the open market. “The WLD token was launched with a relatively low circulating supply of just above 100M WLD,” Worldcoin said in a Sunday post. “This was due to the goal of creating a network of as many human beings as possible. To achieve this, the majority of the WLD token supply will be given to new and existing users in the form of user grants over the years to come.”
Binance Halting Service for European Visa Debit Card (The Block)
About two months on from Visa and Mastercard ending their partnerships with Binance, the world's largest cryptocurrency trading platform is halting service of its Visa debit card in the European Economic Area. Consumers that already possess one of the cards will be able to continue using them until Dec. 20, the company announced in a blog post. The card was aimed at improving consumers' ability to spend digital currency when buying goods and services.