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  • Bank for International Settlements To Let Banks Store Up To 1% of Their Reserves in Bitcoin

    Bank for International Settlements To Let Banks Store Up To 1% of Their Reserves in Bitcoin

    Key takeaways:

    • Bank for International Settlements (BIS) will allow banks to store up to 1% of their aggregate assets in “unbacked” digital currencies like Bitcoin
    • The exposure limit, which is currently set at 1%, is subject to change
    • BIS is a global central bank governing body owned by central banks pursuing global financial stability

    Leading international financial institution updates guidelines regarding banks’ crypto reserves

    The Bank for International Settlements (BIS), a global central bank governing body, is seemingly getting ready to welcome Bitcoin (BTC) and other cryptocurrencies into the reserve assets fold, by allowing banks to keep up to one percent of their reserves in digital currencies.

    According to the Basel Committee on Banking Supervision (BCBS), banks should limit their overall exposure to “Group 2 crypto-assets” to 1 percent of shareholders’ capital. The limit will be periodically reviewed and adjusted if deemed necessary.

    Bank for International Settlements To Let Banks Store Up To 1% of Their Reserves in Bitcoin
    Classification of Group 1 and Group 2 assets under BIS’ new guidelines. Image source: Bank of International Settlements

    Group 1, includes assets that meet classification criteria and include “effective stabilisation mechanisms.” These include tokenized traditional assets and stablecoins.

    Group 2, on the other hand, includes various tokenized assets, stablecoins, and unbacked private digital currencies like Bitcoin and Ethereum (ETH) that don’t meet the agency’s classification conditions.

    An excerpt from the BSC document published in June 2022 reads:

    “Banks’ exposures to Group 2 cryptoassets will be subject to an exposure limit. Banks must apply the exposure limit to their aggregate exposures to Group 2 cryptoassets, including both direct holdings (cash and derivatives) and indirect holding (ie those via investment funds, ETF/ETN, special purpose vehicles).”

    In related news, the US central bank held an inaugural conference on the international role of the US dollar in June. A write-up on the conference was published on Tuesday. The panelists – consisting of top researchers, policymakers, and market experts – concluded that the role of the US dollar as the global reserve asset can effectively be bolstered by the proliferation of digital assets in the medium term.

    Buy/Sell BTC
  • The Fed’s Conference Panelists Conclude That Digital Assets are Not a Threat to Dollar’s Domination

    The Fed’s Conference Panelists Conclude That Digital Assets are Not a Threat to Dollar’s Domination

    Cash money fiat image cover

    Key takeaways:

    • The US central bank hosted an Inaugural Conference on the International Roles of the U.S. Dollar last month
    • Per the conference write-up published on Tuesday, the panelists discussed the role of the US dollar and how private digital assets and CBDCs could shape the USD’s role going forward
    • The panelists agreed that digital assets’ being linked to the value of the USD can bolster its position as the most dominant currency in the medium term

    The Fed has held its inaugural conference on the international role of the US dollar

    In June, the Federal Reserve (Fed) hosted its first-ever conference focused solely on the global role of the US dollar. On Monday, a write-up on the conference was published, which provides interesting insights into the positions held by top researchers, policymakers, and market experts on the “evolving roles of the U.S. dollar.”

    The panelists invited by the Federal Reserve Board and the Federal Reserve Bank of New York discussed a number of topics in the June meeting, including the role of digital assets and central bank digital currencies (CBDCs) in relation to the dollar.

    During a panel discussion on CBDCs – which was moderated by Lorie K. Logan, one of the key organizers of the Fed’s response to the COVID-19 pandemic – attendees agreed that the implementation of a digital dollar would not “lead to drastic changes in the global currency ecosystem.” The panelists added that CBDCs’ development tends to be focused on “domestic retail sectors,” which should not interfere with the dollar being the dominant currency in international banking.

    The conference members also touched on private digital assets and concluded that they – much like CBDCs – don’t pose a direct threat to the dollar’s hegemony. 

    “The current landscape for digital assets has tended to be more centered on retail investors for speculative purposes with movement toward institutional investors constrained by the lack of a regulatory framework,” reads an excerpt from the write-up.

    Interestingly, panelists concluded that as long as digital assets are linked to the dollar, they could actually reinforce the dollar’s position as the most dominant currency in the medium term.

    Earlier this year, the Fed released a research paper on the viability of a USD-based CBDC. At the time, the Fed wrote that the so-called digital dollar would help maintain USD’s position as the world’s reserve currency.

  • Gate.io Announces Second Audit, After Being First Exchange To Provide Proof-of-Reserves

    Gate.io Announces Second Audit, After Being First Exchange To Provide Proof-of-Reserves

    Majuro, Marshall Islands, 6th July, 2022, Chainwire

    Gate.io has announced it will commence another proof-of-reserves audit to provide user verifiable reserves data through a Merkle tree implementation audited by a leading third-party firm, after several high-profile bankruptcies in the space.

    In 2020, as the first cryptocurrency exchange in the world to commit to providing 100% collateral, Gate.io has worked closely with Armanino LLP, a leading US audit firm, to successfully provide users with professional and credible asset verification services in an open-source, transparent, and cryptographically-verifiable Merkle tree. The asset verification model was patented by Gate.io in 2020. Performing PoR audits in this model has become one of the commonplaces for exchanges to verify asset security, and Gate.io has set a standard for the industry in asset security verification.

    Exchanges use proof-of-reserves (PoR) audits to prove that 100% of user funds are held on the platform. Despite the market’s volatility, Gate.io is demonstrating its stability is unaffected and that it has sufficient capital to continue operations and serve its users.

    Proof-of-reserves Audits in a Nutshell

    In centralized exchanges, users’ cryptocurrency balances are recorded in a centralized ledger; we’ll refer to this as “effective user reserves.” Additionally, we’ll refer to the actual amount of users’ cryptocurrency that the exchange stores on-chain as “exchange reserves.”

    Take Gate.io as an example; when the exchange proves that it holds 100% of its reserves verified by a qualified audit firm, it’s proving that the total amount of exchange reserves is equal to or greater than the effective user reserves.

    After completion of the audit, users will be provided with a method to verify their funds using an open-source, transparent, and cryptographically-verifiable Merkle tree. In essence, the Merkle tree is a method of encrypting data in a way that cannot be altered but can be verified. Alternatively, it allows users to reliably interact with the auditor’s findings without exposing the contents of the data itself.

    As a result, Gate.io‘s users can rest assured that their assets are safe and accessible at any time, and regardless of market volatility, their assets are genuinely held and available on the exchange.

    Tom Yang, Executive Vice President of Gate.io, said, “Gate.io protects user funds at multiple levels, including legal, regulatory, platform security, and proof-of-reserves audits. Gate.io has invested millions of dollars in security measures and legal funds to safeguard user assets.”

    Taking the Lead in User Trust and Platform Transparency

    Although these audits have been around since the early years of crypto exchanges, they have not always been conducted with complete transparency and credibility. Early on, it was common for exchanges to self-audit, lack credible third-party audits, and fail to provide users with an avenue to verify their assets.

    After being developed and applied by Gate.io, the third-party audit and Merkle Tree verification method has been found effective by the market. Exchanges can indeed prove that the user assets held by the platform are not less than the total amount of funds belonging to the platform users. It does not only eliminate user doubts and enhances user trust, but also promotes the healthy and stable development of the platform and the industry.

    Why Provide Proof of Reserves Now

    During a time of market fluctuations and uncertainty, Gate.io is taking steps to enhance the security of its users’ assets and improve confidence in the industry and market. The exchange has a history of transparent and safe operations and intends to continue operating under these principles.

    As one of the top ten cryptocurrency exchanges, Gate.io has a long history of providing secure service in the cryptocurrency industry, boasting zero asset compromises in its nine years of operation. In addition, the platform has taken steps to adhere to ethical and transparent operations, made apparent by its security history and by setting the industry example for open, transparent, and credible proof-of-reserves audits. All of this ties into the exchange’s commitment to furthering the blockchain industry, presenting as a beacon of hope and trust, and offering a top-tier platform that crypto investors can rely on.

    About Gate.io

    Established in 2013, Gate.io is one of the oldest, leading cryptocurrency exchanges. Gate.io offers most of the leading digital assets and has over 10 million registered users across the world. It is consistently ranked as one of the top 10 cryptocurrency exchanges based on liquidity and trading volume on CoinGecko, and has been verified by the Blockchain Transparency Institute (BTI). Additionally, Gate.io has been given a rating of 4.5 by Forbes Advisor, making it one of the Best Crypto Exchanges for 2021. Besides the main exchange, Gate.io also offers other services such as decentralized finance, research and analytics, venture capital investments, wallet services, and more.

    Contacts

    Head of PR & Communication

    • Dion Guillaume
    • Gate.io
    • dion@mail.gate.io
  • Latest Crypto News About Mushe (XMU) and Stacks (STX)

    Latest Crypto News About Mushe (XMU) and Stacks (STX)

    There seems to be a great contraction due to the expected bear market. It increased the insecurity in the cryptocurrency markets. Analysts and expert traders are making statements that it is unnecessary for holders to panic in this period, that the upward trend will start again in the medium term, and that this period creates an opportunity to buy from the dip.

    However, it can be seen that token holders who are looking for a safe haven are showing interest in tokens such as Mushe (XMU) and Stacks (STX).

    Mushe (XMU) Is a Unique Ecosystem

    Tokens such as Mushe (XMU), which are in the presale process, are much less affected by the crypto crash experienced in the cryptocurrency markets compared to other tokens. Mushe (XMU), which is seen as a safe purchase, is especially preferred for medium and long-term purchase purposes, and also has a strong financial roadmap.

    The coinfocuses specifically on making digital assets accessible to everyone. In this direction, it is aimed to create an ecosystem that is easy to use and understandable.

    Working on a metaverse universe called MusheVerse, the coin also uses the decentralised implementation of its ecosystem in this universe. It is stated that the Mushe Chat application, which is designed as a decentralised social platform, will be integrated into this universe. Likewise, it is said that there will be play-to-earn games and various metaverse assets in the universe.

    The coin staking program also has very profitable returns. Token holders can earn regular passive income through this program. In addition, voting rights are given to the DAO, which will determine the ecosystem’s future.

    Reddit Crypto Trading Communities Love Stacks (STX)

    The Stacks (STX) project is being developed to make the classic Bitcoin network compatible with new technologies. Stacks, a Layer 1-based application, focus on the weak points of Bitcoin and reveals an algorithm that provides improvement at these points.

    With Layer 1 technology, developers make it possible to create applications, such as smart contracts and dApps, on the Bitcoin chain via Stacks. Thanks to this algorithm offered by the ecosystem, it can be seen that many new applications have been implemented in the field of blockchain.

    Convex Finance (CVX)

    An anonymous developer community released the Convex Finance (CVX) project. Compared to other projects, the financial performance of Convex Finance (CVX), which progresses with an excellent and practical roadmap, is also interesting.

    Although there is serious competition in the field of Curve liquidity protocols, the Convex Financeproject manages to stay ahead of its competitors thanks to its high profitability. It is anticipated that this project, which offers very effective solutions in this field, will reach more buyers in the future as it will survive the recent cryptocurrency plunge.

    With its unique features and strong development team, Mushe (XMU) is poised for success in the coming years. The coin can be a good purchase, even in the current market conditions. Despite the overall crypto crash, the coin has held its value better than most other currencies and shows potential for growth in the future.

    Additionally, Stacks (STX) is another promising digital currency that may be worth buying into. With continued development and growing interest from its holders, both Mushe (XMU) and Stacks (STX) will likely see increased value in the coming months and years.

    Mushe

    Website: https://mushe.world/

    Twitter: https://twitter.com/Mushe_World

    Telegram: https://t.me/musheworldXMU

    Instagram: https://www.instagram.com/mushe_world

  • PlayMining’s DEAPCoin (DEP) Secures Listing on Leading Crypto Exchange Huobi Global

    PlayMining’s DEAPCoin (DEP) Secures Listing on Leading Crypto Exchange Huobi Global

    Key takeaways:

    • DEAPCoin has been listed on the Huobi Global cryptocurrency exchange
    • DeapCoin is a token used in PlayMining, a GameFi ecosystem developed by Digital Entertainment Asset
    • Huobi Global is one of the largest cryptocurrency exchanges in the world

    DEAPCoin (DEP) is now available for trading on Huobi Global

    The Huobi Global cryptocurrency exchange has listed DEAPCoin (DEP), a token powering the PlayMining ecosystem. Initially, DEP is available for trading on Huobi Global in a trading pair against USDT, the most popular stablecoin on the market. DEP has been trading on Huobi Global since June 30.

    The PlayMining ecosystem is developed by Digital Entertainment Asset, a Singapore-based project that’s focused on the GameFi space. PlayMining features several Play-to-Earn games, where users can earn crypto tokens for playing. Examples of games featured on PlayMining include Job Tribes, Fujiwara Kamui Verse and Menya Dragon Ramen.

    The DEP token facilitates NFT trading in the PlayMining ecosystem, and also serves as a rewards token for players of the platform’s blockchain-powered games who successfully complete challenges and missions. Another way to earn DEP tokens is to achieve a high rank on the PlayMining platform’s leaderboards.

    Digital Entertainment Asset founder and CEO Naohito Yoshida commented on DEAPCoin’s listing on Huobi Global and how it helps advance the company’s mission:

    “We are very pleased to list DEP on Huobi Global, the world’s leading Singapore-based crypto exchange. I would like to thank everyone involved in the process. DEA’s mission to globally expand “Play to Earn” and Huobi Global’s strategy to lead the crypto asset industry with its strong global reach fit well together.”

    The listing represents an important strategic step for DEAPCoin, which also secured a listing on Japan-based cryptocurrency exchange Bitpoint earlier this year.

    DEAPCoin becoming available on Huobi Global makes the token accessible to a much wider audience, as Huobi Global is one of the undisputed leaders in the cryptocurrency exchange industry. In the last 24 hours alone, Huobi Global processed $1 billion worth of trades via spot markets and $1.3 billion in volume on its derivatives markets.

    The exchange offers more than 800 trading pairs, making it a premier destination for altcoin traders.

  • Sequoia Capital China Aims to Raise $9 Billion to Fund China-Based Startups

    Sequoia Capital China Aims to Raise $9 Billion to Fund China-Based Startups

    Sequoia Capital image cover

    Key takeaways:

    • Sequoia’s China arm is reportedly raising between $8 billion and $9 billion in its latest financing round
    • Sequoia Capital’s successful investments include the likes of Apple, Google, PayPal, and a series of other highly successful companies
    • The firm launched a $600 million crypto fund in February with the aim of pursuing DeFi-oriented investments

    Sequoia Capital China is raising between $8B to $9B in new capital according to people familiar with the matter 

    According to a report from Financial Times, Sequoia Capital China is in the process of raising between $8 billion and $9 billion in new capital, despite the recent cryptocurrency and macroeconomic downturn and foreign investors’ unwillingness to invest in the heavily regulated Chinese market.

    Sequoia Capital China is a China-based arm of the American venture capital firm, which has made several successful investments in its 50-year history, including Apple, Cisco, Google, PayPal, and a series of global businesses.

    FT, citing sources familiar with the matter, reported that the financing round is slated to close this week and noted that it was 50% oversubscribed. The newly acquired capital will allow the company to invest in China-based startups in need of outside investment. 

    Sequoia Capital raised $600 million for its cryptocurrency-focused fund earlier this year, with the aim of managing tokens, participating in governance, liquidity providing services, and various DeFi-related operations. The company has previously worked alongside some of the most prominent crypto projects such as FTX, Fireblocks, and Parallel.

    It is currently unknown whether the new round of funding will be used by Sequoia’s China arm to pursue investments in the Web3 and broader blockchain space. Recall that Beijing effectively banned the use of digital assets last year, citing concern over regular people making bad crypto investment decisions as the main reason. 

  • Bitsliced, the revolution behind asset tokenization

    Bitsliced, the revolution behind asset tokenization

    Zug, Switzerland, 4th July, 2022, Chainwire

    While the adoption of cryptocurrencies continues to grow, as evidenced by last year’s bull market, there is still an abundant need to integrate real-world assets onto the blockchain.

    Bitsliced’s purpose is to fill this gap by bridging blockchain technology with the physical world. Through Bitsliced’s app and set of smart contracts, Bitsliced will make it intuitive and easy to tokenize and fractionalize assets from different markets such as collectibles, real estate, traditional art, and several other use cases.

    Overview of Sliced App

    Bitsliced’s flagship product, Sliced, is a SocialFi app and marketplace where users can mint and trade different NFTs (non-fungible tokens) and tokens that represent real-world assets. 

    Through the Sliced app, anyone can create a digital representation of an owned asset, be it an art piece, propriety, vehicle, piece of clothing, etc. In doing so, Bitsliced contributes to the creation of a parallel digital market that eases the trading of items across borders and unlocks additional value through novel revenue streams.

    Leveraging blockchain technology, the Sliced app guarantees an extra layer of security and transparency through all trades. Further down the line, it will be possible to fractionalize and divide ownership of assets through different users (verifiable co-ownership). 

    The app will be available on all mobile devices, including the iOS and Android operating systems, and desktop users can also access it through the web browser version. 

    Unique Features

    To increase retention and user engagement, the Sliced app will be gamified. Badges and a leaderboard system will be included in the app’s architecture, incentivizing users to keep using Bitsliced’s services.

    The Slice app will also include social media elements. Bitsliced will be leveraging an innovative approach to socialization through Bitsliced’s NFT channels. Acting as a personal digital space, NFT channels will enable users to socialize in unique ways while showcasing their portfolios and NFT in a sort of “digital gallery”.

    NFT channels will be a place where Bitsliced’s community can hang out, trade, and discuss their favorite topics, be it in real estate, collectibles, fashion, and any other industry disrupted by Sliced NFTs. Bitsliced expects to create a vibrant and active community of investors, collectors, and NFT enthusiasts thanks to the high-profile channels.

    Another component of the Bitsliced SocialFi app is staking and yield farming. Several passive income possibilities will be available to SLICED token holders. By staking and helping keep the network running, users can be rewarded with an estimated annual percentage yield (APY) of 15%. Alternatively, SLICED token holders can also earn an expected 25% APY by providing liquidity to Bitsliced’s protocol and marketplace. 

    The SLICED token will be the cornerstone of the app, powering all trades within the marketplace. Each transaction within the marketplace is immediately rewarded with a 1% cashback, with real estate purchases potentially having up to 8% cashback depending on the broker. The Bitsliced Debit Card will also be introduced, offering a convenient way for users to spend their crypto funds and cashback earnings to make purchases or convert into fiat. 

    Sliced NFTs – Legal Background

    Thanks to Bitsliced’s proprietary Sliced NFT System, we’ll be able to issue universal digital certificates with a seal of trust. All certificates are unique NFTs that represent ownership of a specific asset.

    Sliced, alongside its network of partners and brokers, will be responsible for ensuring all the necessary legal due diligence is done beforehand. Bitsliced proprietary code will then check and verify the integrity of the data, and only then will the NFT certificate be minted.

    About Bitsliced

    Bitsliced is a blockchain-based protocol aimed at the tokenization of real-world assets. Its platform enables anyone to mint, collect, and trade physical items on the blockchain.

    The Bitslice ecosystem, which is comprised of a SocialFi app and NFT marketplace, offers an innovative business model through which a parallel digital economy is born. Anything from real estate, collectibles, fashion wearables, and several other physical items can be traded efficiently across the world. 

    The Bitslice app also features social and gamified elements, allowing the community to socialize, compete, and display their NFTs in “digital galleries”, as well as the opportunity to stake and earn SLICE, the native token powering the Bitsliced ecosystem. 

    Learn more about Bitsliced and join Bitsliced’s community by visiting the official website or following Bitsliced on Twitter, Telegram, and Instagram.

    Contacts

    CEO

    • Randy van Brienen
    • Bitsliced
    • info@bitsliced.io
  • FTX US Extends $400M Revolving Credit to BlockFi, Signs Option to Buy the Crypto Lender for $240M

    FTX US Extends $400M Revolving Credit to BlockFi, Signs Option to Buy the Crypto Lender for $240M

    FTX.US FTX image cover

    FTX US has expanded on the previous deal made with a major cryptocurrency lending company BlockFi, upping the amount of the revolving credit from $250 million to $400 million. In addition, the new deal stipulates that FTX US can acquire BlockFi for a maximum amount of $240 million.

    Key takeaways:

    • BlockFi is one of the major centralized cryptocurrency lenders that have come under fire in the past month. Recall that Voyager and Vauld halted operations on Friday and Monday, respectively. Meanwhile, Celsius paused withdrawals last month in response to “extreme market conditions.”
    • BlockFi has seen a drastic increase in the amount of user withdrawals over the past couple of weeks, leading to a significant liquidity crunch. Sam Bankman Fried’s FTX US has provided a lifeline, which allowed the firm to remain operational and to even increase its interest rates despite poor market conditions.
    • As a part of the new deal with FTX US, BlockFi has been granted access to $400 million in revolving credit facilities. According to BlockFi founders, the company had considerable exposure to the now bankrupt Three Arrows Capital (3AC) hedge fund, which is why “it was important to add capital to our balance sheet to bolster liquidity and protect client funds.”
    • The new deal reportedly involves a stipulation that the FTX US trading platform can acquire BlockFi for a maximum amount of $240 million, which showcases the severe drop in the company’s valuation. Per Crunchbase, BlockFi raised $500 million at a $4 billion valuation during its Series E round in August 2022. 
    • FTX US is an American arm of the international FTX cryptocurrency exchange. Helmed by CEO and founder Bankman-Fried, FTX US’ average daily volume grew 608% in 2021, during its first full year of operation.
  • Crypto Investment Platforms Voyager Digital and Vauld Halt Operations Due to a Liquidity Crunch

    Crypto Investment Platforms Voyager Digital and Vauld Halt Operations Due to a Liquidity Crunch

    Red traffic light stop sign image cover

    Key takeaways:

    • Voyager Digital halted its operations last Friday, after being unable to collect debt payments on a $600M+ loan to crypto hedge fund Three Arrows Capital 
    • Crypto lending portal Vauld announced on Monday all withdrawals and deposits have been paused and restructuring options are being explored
    • A number of crypto trading platforms have been facing liquidity problems in recent weeks due to the heightened volatility and broader bearish trend

    Top crypto investment platforms strapped for cash due to a spike in withdrawals

    The ongoing cryptocurrency downturn has led to a massive drop in market valuations of most digital assets. Bitcoin is down more than 34% in the past month, Ethereum close to 40%. As a result of plunging values, several cryptocurrency lending and investment platforms are facing severe liquidity challenges. 

    On Friday, publicly traded alternative investment giant Voyager Digital announced a temporary suspension of trading, deposits, and withdrawals due to the “current market conditions.” The company’s CEO Stephen Ehrlich wrote in a statement that the decision to halt operation gives the firm “additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform.”

    Voyager has been facing a dramatic increase in capital outflows due to its exposure to the insolvent crypto hedge fund Three Arrows Capital (3AC), which owes Voyager more than $600 million worth of Bitcoin and USDC. Voyager’s shares have seen a 97% price reduction since the start of 2022 in response to the company’s inability to collect debt payments and the general crypto downturn.

    Similar to Voyager, a prominent crypto lender and exchange platform Vauld announced earlier today that it is halting all withdrawals and deposits. In a statement shared with the community, Vauld’s CEO Darshan Bathija noted that the platform’s users have withdrawn close to $200 million since June 12, which gave way to liquidity problems. Like Voyager, the Vauld team hopes that a suspension of its operations will give the company “breathing space to carry out the proposed restructuring exercise.”

    In related news, Celsius, another centralized investment platform that allows traders to earn interest on their crypto deposits and take out crypto loans collateralized with digital currencies, announced earlier this month it is pausing withdrawals, crypto swaps and internal transfers due to “extreme market conditions.”