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Tag: Institutional adoption

  • Lionel Messi’s VC Firm Invests in $21M Round for Matchday, a Soccer-Focused Web3 Startup

    Lionel Messi’s VC Firm Invests in $21M Round for Matchday, a Soccer-Focused Web3 Startup

    Lionel Messi’s VC Firm Invests in $21M Round for Matchday, a Soccer-Focused Web3 Startup

    Key takeaways:

    • Lionel Messi’s venture capital company PlayTime has been one of the key investors in Matchday’s seed round
    • Matchday, a web3 startup focusing on soccer gaming, has raised $21 million in the seed round
    • This is not Messi’s first foray into the crypto sphere – last year the PSG star signed a $20 million deal with Socios, a sports fan token giant

    Messi continues making waves in the crypto sports scene

    Lionel Messi’s venture capital firm PlayTime announced it has invested in a $21 million financing round raised by Matchday, a startup that focuses on interactive soccer entertainment in the web3 space.

     “To us, it’s all about accessibility. We’re talking about bringing on board hundreds of millions of fans into our game without them even knowing what Web3 is. … Our motto is ‘make complexity disappear,’” stated the chief gaming officer (CGO) at Matchday, Sebastien de Halleux.

    Matchday is reportedly trying to build a number of soccer games with licensing from FIFA, the international governing body and soccer’s ultimate administrative authority. Matchday apparently plans to tap into the casual gamers segment, which is not particularly interested in the FIFA soccer game for PCs and gaming consoles. The company plans to incorporate digital player cards and other elements that could appeal to the casual fan. With billions of soccer fans worldwide, the growth potential is certainly there.

    Messi, who won the 2022 World Cup with Argentina and is widely considered to be one of the best soccer players of all time, is no stranger to the cryptocurrencie space. Last year, he penned a $20 million deal with Socios, a leading fan token company with partners such as FC Barcelona (BAR), Paris Saint-Germain (PSG), AC Milan (ACM), UFC, LA Lakes, and more.

    PlayTime’s investment comes at a time of reduced institutional and VC interest in crypto. In fact, institutional crypto inflows in 2022 fell to the lowest levels since 2018 and recorded a 95% drop compared to the all-time high in 2021.

  • Institutional Investments in Crypto Plunged 95%, From $9.1B in 2021 to $433M in 2022

    Institutional Investments in Crypto Plunged 95%, From $9.1B in 2021 to $433M in 2022

    Downward chart image cover

    Key takeaways:

    • Institutional investments dropped by 95% from their ATH in 2021, according to the latest CoinShares report
    • Investors withdrew money from Ethereum products over concerns about the network’s transition to Proof-of-Stake
    • CoinShares concluded that despite the drop, it is encouraging that investors are still choosing to invest in crypto, despite the hawkish FED and broader economic issues

    Institutional crypto flows in 2022 fell to the lowest levels since 2018

    The price of Bitcoin and virtually all digital assets plunged by high double digits last year, leading to the total crypto market cap dropping to $800 billion, down from the $3 trillion high in 2021.

    The latest report from CoinShares, Europe’s largest digital asset investment and trading group, showed that the drop in market prices was reflected in investors’ sentiment as well. Whereas institutional crypto inflows reached their all-time high of more than $9.1 billion in 2021, the investments dried up in 2022, falling to just $433 million. That’s a massive 95% drop in a single year.

    institutional investments in crypto since 2017
    Institutional crypto inflows peaked at $9.1 billion in 2021. Source

    The $433 million figure is the lowest amount that investors have spent on crypto projects since 2018, when there was only $233 million invested during the course of the year. 

    ProShares, the company behind the Bitcoin Strategy ETF (BITO), accounted for the biggest shares of total inflows in 2022, with $320 million. On the other hand of the spectrum, investors withdrew $529 million from 3iQ’s crypto investment products, which include Bitcoin and Ethereum offerings.

    While Bitcoin net investments amounted to $288 million, Ethereum investments saw net outflows of $402 million. The main reason for ETH outflows was investors’ concerns about the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus algorithm, according to CoinShares.

    Despite the big year-over-year decline in investments, CoinShares noted that it is “encouraging” to see investors choosing to invest, “In a year where bitcoin prices fell by 63%, a clear bear market precipitated by irrational exuberance and an overly hawkish FED.”

  • BMW Partners With Coinweb For Blockchain Loyalty Program and to Streamline Financial Services

    BMW Partners With Coinweb For Blockchain Loyalty Program and to Streamline Financial Services

    BMW logo image cover

    Key takeaways:

    • BMW and Coinweb have entered a partnership focused on streamlining BMW’s financial processes and a new loyalty program
    • BNB Chain has been chosen as the execution layer for the new blockchain services
    • The program will initially target Thailand customers, with a potential global rollout in the cards

    BMW’s blockchain initiative will initially be limited to the Thailand market

    Cross-chain computation platform Coinweb and German multinational manufacturer of luxury vehicles BMW are partnering to bring blockchain technology to BMW’s operations and customers in Thailand. 

    The project will be executed in two phases. The first phase involves a feasibility assessment for cross-chain parallel-executing smart contracts to automate manual processes and streamline operations for BMW’s vehicle finance offerings, potentially including an integrated anti-money laundering (AML) and know-your-customer (KYC) tool. 

    The second phase will see Coinweb develop a customized SaaS Web3 application for a customer loyalty program, incentivizing BMW customers with a blockchain-based rewards program. 

    Rewards will be earned through various activities and can be redeemed for products and services from BMW and a connected ecosystem. These activities will include things such as buying a car, going for a service, and more.

    According to Coinweb’s press release, transactions will be settled using Binance’s BNB Chain due to its “performance suitability in regards to cost, speed, and capacity.” 

    The project is expected to be launched in 2023. Speaking to Cointelegraph, Coinweb CEO Toby Gilbert said they hope their partnership with BMW will expand beyond Thailand and that a “future global rollout” is in the pipeline.

    BMW is not the only automotive company tapping into blockchain technology’s potential. In October 2021, Mclaren Racing announced the launch of digital collectibles Tezos. In December 2021, Ferrari Scuderia partnered with Velas Network AG, a Swiss-based blockchain firm specializing in NFT-related products and services. Last January, Mercedes partnered with NFT digital artists to celebrate its iconic G-Class series. 

  • USDC Issuer Circle Rolls Out Support for Apple Pay

    USDC Issuer Circle Rolls Out Support for Apple Pay

    USDC issuer Circle cover image

    Key takeaways:

    • USDC stablecoin issuer Circle has launched support for Apple Pay
    • Apple Pay integration makes it easier for crypto-native businesses to accept payment from customers that don’t use crypto
    • USDC is the second-largest stablecoin in the industry, controlling more than a $44 billion market share

    Apple Pay integration makes it easier for businesses to accept payments from customers that don’t use crypto

    Circle, the company behind the USD Coin (USDC) stablecoin, announced on Tuesday a new way to facilitate USDC settlements. “Excited to launch this new on ramp API for developers to connect Apple Pay to USDC settlement,” wrote Circle CEO Jeremy Allaire in a tweet yesterday.

    According to an official statement from the company, Apple Pay integration will “make it possible for crypto-native businesses to accept payments from customers who don’t use crypto at all.” In addition, traditional businesses can also take advantage of the integration to benefit from USDC settlements.

    USDC is the second largest stablecoin in the sector, boasting a $44 billion market capitalization as of writing. The stablecoin trails only Tether (USDT), which controls more than a $67 billion market share.

    In September, Circle revealed that the USDC stablecoin would roll out to five additional blockchains by the end of 2022, including Arbitrum, Cosmos, NEAR, Optimism, and Polkadot.

  • Buffett-backed Banking Startup Nubank Will Launch Its Own Polygon-Based Cryptocurrency

    Buffett-backed Banking Startup Nubank Will Launch Its Own Polygon-Based Cryptocurrency

    Nubank cover image

    Key takeaways:

    • The largest Brazilian neobank, Nubank, has announced it will be launching its own token early next year
    • Polygon-powered Nucoin will allow holders to benefit from exclusive perks and discounts
    • Nubank raised $3.9 billion from investors since its launch in 2013, with the largest investment amount coming from Warren Buffett’s Berkshire Hathway

    Nubank’s crypto token is slated to launch in the first half of 2023

    Brazil-based digital bank Nubank has announced it will be launching its own digital currency, called Nucoin, in the first half of next year. Nucoin will be powered by Polygon, a Layer 2 scaling solution for Ethereum, which is theoretically capable of processing 7,200 transactions per second (TPS). 

    According to a press release, the neobank’s crypto token will enable Nucoin holders to benefit from various perks and discounts, providing encouragement for customers to use Nubank products. Initially, the token will be made available to 2,000 users. During the test period, Nubank hopes to build upon the customers’ feedback and “explore a decentralized process of product creation.”

    Speaking about Nucoin and the crypto-focused loyalty program, Polygon co-founder Sandeep Nailwal remarked:

    “One of the largest digital banking institutions in the world, offering its own cryptocurrency is a strong testament to the utility blockchain and crypto have to offer.”

    Nailwal added that Nubank’s announcement signals the “shift happening in the traditional finance space.”

    Warren Buffett’s Berkshire Hathway is the largest investor in Nubank 

    This is not Nubank’s first foray into crypto – earlier this year, Nubank launched Bitcoin and Ethereum trading via the Paxos blockchain to huge success, having reached 1 million users within just one month of the initial launch. 

    Founded in 2013, Nubank offers digital credit cards, transfers, and payment services to mostly Latin American customers. Per Crunchbase data, the digital banking startup raised $3.9 billion across 14 funding rounds so far. The biggest chunk of the total raised amount came from Warren Buffett’s Berkshire Hathaway, which was a lead investor in last June’s $750 million Series G round, and in February’s $1 billion post-IPO round. 

  • Google Partners with Coinbase to Start Accepting Crypto for Cloud Services in Early 2023

    Google Partners with Coinbase to Start Accepting Crypto for Cloud Services in Early 2023

    Google cover image

    Key takeaways:

    • Google’s cloud division has entered a strategic partnership with Coinbase
    • The deal will see Google start accepting crypto for cloud services
    • Google will also use Coinbase’s digital asset custody service

    Crypto payments will initially be available only to select customers

    Earlier today, Google announced that it would start allowing a subset of its customers to pay for cloud services using digital currencies. Cryptocurrency transactions will be facilitated by Coinbase, the largest US crypto exchange. 

    According to a report by CNBC, the ability to pay with crypto will first become available to select users in early 2023. However, the search giant has said that it would expand the service to more customers in the future. 

    In addition to tapping into crypto payments, Google will reportedly also be “exploring” Coinbase Prime, a corporate-focused solution that combines advanced trading tools and digital asset custody. Coinbase co-founder and CEO, Brian Armstrong, commented:

    “We are excited Google Cloud has selected Coinbase to help bring Web3 to a new set of users and provide powerful solutions to developers.”

    As a part of the deal, Coinbase will be transferring a part of its Amazon Web Service-hosted applications over to Google’s servers. 

    Google Cloud CEO Thomas Kurian said they are proud Coinbase has chosen Google Cloud as its strategic partner and added they look forward to serving the “thriving global Web3 customer and partner ecosystem.” Kurian also added that the Google cloud division’s focus is to provide a frictionless environment where developers can focus on Web3 innovation.

    In related news, NEAR Foundation and Google Cloud entered an agreement last week, which will speed up the development process of NEAR Protocol-based decentralized applications (dApps).

  • NEAR Foundation Joins Forces With Google Cloud to Support Web3 Developers

    NEAR Foundation Joins Forces With Google Cloud to Support Web3 Developers

    NEAR Foundation Joins Forces With Google Cloud to Support Web3 Developers

    Key takeaways:

    • NEAR Foundation and Google Cloud have forged a new partnership
    • As a part of the deal, Google Cloud will provide infrastructure to support decentralized application development on NEAR blockchain
    • The price of NEAR, the project’s native token, saw a modest uptick following the announcement

    Google Cloud to provide infrastructure for Pagoda, NEAR’s Web3 startup platform

    NEAR Foundation has announced that it struck a partnership with Google Cloud, one of the leading global cloud service providers. According to a Tuesday press release, Google Cloud will be providing technical support for decentralized application (dApp) developers, thus promoting blockchain innovations. 

    The NEAR team stated that the collaboration with Google Cloud will help developers “create without limits” and “help onboard the masses into Web3.”

    NEAR Foundation CEO Marieke Flament had the following to say about the partnership with the search giant’s cloud division:

    “This partnership marks a new chapter for us as we continue to offer the best support possible for the next generation of visionaries choosing to build on the NEAR protocol.”

    From a technological standpoint, Google Cloud will be providing the infrastructure necessary to scale Pagoda, NEAR’s Web3 startup platform. This will enable devs to more easily tap into NEAR’s library of auto-generated templates and user interfaces – essentially speeding up the development process. 

    Director of Digital Assets at Google Cloud, Carlos Arena, explained:

    “We will be supporting NEAR and giving Web3 developers the most secure, reliable, and sustainable cloud infrastructure on which they can build and scale.”

    Carlos added that the Google Cloud team is on a mission to support blockchain-based products and services.

    NEAR blockchain is top 15th in terms of TVL

    According to data curated by DeFi Llama, NEAR Protocol is the 15th largest blockchain in terms of total value locked (TVL), with $272 million worth of digital assets living on the chain. The current TVL figure places NEAR Protocol just ahead of Algorand at the 16th spot, and behind Kava at the 14th.

    Blockchain ranked by their respective TVL. Image source: DeFi Llama

    NEAR, the native token of the NEAR blockchain, saw positive price activity following the Google Cloud announcement. NEAR price increased from $3.56 on Oct 4 to a multi-week high of $3.75 on Oct 6. However, the price of NEAR retraced to $3.65 by press time, currently showing a modest +2.5% price change in the last 48 hours. 

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  • Institutional-Grade Bitcoin Company NYDIG Raises $720 Million for Its BTC Fund

    Institutional-Grade Bitcoin Company NYDIG Raises $720 Million for Its BTC Fund

    Bitcoin (BTC) and fiat currency cover image

    Key takeaways:

    • NYDIG has raised $720 million from 59 investors for its Bitcoin fund
    • In addition, the leading Bitcoin investment company has appointed a new CEO and president
    • Under new leadership, NYDIG will focus on Bitcoin’s Lightning Network and continue pursuing its “Bitcoin for All” mission

    SEC filing shows NYDIG raised capital for the Bitcoin Fund from 59 investors

    NYDIG, a leading company providing a full suite of Bitcoin services and products for institutional investors, has filed documentation with the US Securities and Exchange Commission (SEC) that shows the firm raised $720 million for its Bitcoin Fund.

    According to the filing, 59 investors participated in the capital raise for the NYDIG Institutional Bitcoin Fund.

    NYDIG launched its Bitcoin Fund in 2018 and continued expanding its BTC portfolio in the years since. The latest capital raise is by far the biggest in the fund’s four-year history.

    Last year, NYDIG completed a $1 billion financing round at a $7 billion valuation. The round was led by WestCap and saw participation from prominent financial institutions such as Morgan Stanley.

    NYDIG’s balance sheet is “the strongest it’s ever been,” despite the bear market

    In addition to the massive influx of new capital into the NYDIG-managed BTC fund, the company shared another interesting piece of news on Monday. According to a press release, Tehaj Shas assumed the role of the CEO, while Nate Conrad Became the new president. In addition to leadership change, the company revealed that its balance sheet is “the strongest it’s ever been.”

    NYDIG Founder and Executive Chairman Ross Stevens credited positive business metrics to “risk management discipline.” He said:

    “Even during the height of the crypto frenzy in H2 2021, our risk management discipline kept us entirely away from DeFi, centralized lending platforms, and the uncollateralized lending market. The firm’s balance sheet is the strongest it’s ever been, and we’re now investing aggressively into a capital-starved market.”

    NYDIG will focus on the Lightning Network under new leadership

    Shah, who had worked for nearly 20 years as a partner at Goldman Sachs, said the company would continue expanding Bitcoin solutions as a part of its “Bitcoin for All” mission. The new CEO added that an increased level of focus would be put on the Lighting Network, the leading Bitcoin Layer 2 scaling solution. “

    “Now it’s time for Lightning. We are excited to deliver next-generation wallet and payment solutions – faster, cheaper, safer – to our expanding set of enterprise technology clients,” Shah explained.

  • Nasdaq Launches Digital Assets Bussiness in Response to Growing Institutional Demand for Crypto

    Nasdaq Launches Digital Assets Bussiness in Response to Growing Institutional Demand for Crypto

    NASDAQ image cover

    Key takeaways:

    • Global financial technology firm Nasdaq has launched Nasdaq Digital Assets, a new business dedicated exclusively to crypto assets
    • Nasdaq Digital Assets will initially focus on providing crypto-related custody and security services
    • According to the company, the launch of Nasdaq Digital Assets comes in response to investors’ growing demand for crypto products and services

    US stock exchange giant launches crypto-oriented business called Nasdaq Digital Assets 

    Nasdaq, one of the leading financial firms and the owner and operator of 10 stock exchanges in the US and Europe, has announced the launch of Nasdaq Digital Assets, a new business designed to facilitate digital assets trading and custody.

    Speaking about the launch, Nasdaq president and CEO Adena Friedman noted that the digital assets technology “has the potential to transform markets over the long-term,” which is why the financial company will focus on providing “institutional-grade solutions that bring greater liquidity, integrity, and transparency to support the evolution.”

    An excerpt from Tuesday’s press release reads:

    “The launch underpins Nasdaq’s ambition to advance and help facilitate broader institutional participation in digital assets by providing trusted and institutional-grade solutions, focused on enhanced custody, liquidity and integrity.”

    Nasdaq Digital Assets builds upon the company’s existing portfolio of crypto-oriented products and services, including a digital assets marketplace, crypto anti-crime offerings, and crypto index solutions. Initially, the newly-launched business will be focusing on an “advanced custody solution,” using a combination of hot and cold blockchain wallets.

    Executive Vice President and Head of North American Markets at Nasdaq, Tal Cohen, explained in a statement that the launch of a purely crypto-oriented business is a result of growing institutional investor demand. “Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth [of digital assets],” explained Cohen.

    In conjunction with the launch of Nasdaq Digital Assets, the company has also announced an overhaul of its anti-financial crime technology for digital assets. Per a recent Chainalysis report, crypto-powered money laundering hit $8.6 billion in 2021, which was 30% higher than in 2020.