Sovereign Wealth Fund Hiring Blockchain Talent to Invest in Web3, Pantera Capital Raises $600M

Sovereign Wealth Fund Hiring Blockchain Talent to Invest in Web3, Pantera Capital Raises $600M for 4th Fund from Endowment

Funds continue to flow into the cryptocurrency market, with Pantera Capital being the latest to raise funding for its another crypto venture fund.

Pantera Capital has raised $600 million for its fourth venture fund, according to tech news site The Information, citing a person with direct knowledge of the matter.

The fund is expected to reach $1 billion when it closes in March and will invest in venture equity and crypto tokens that have launched and are in development.

About 75% of the capital for the new fund is coming from institutional sources such as endowments, much different from the firm’s $175 million it raised in 2018, which was mainly funded by individuals, including wealthy crypto investors.

Just two months back in September, Pantera raised $369 million for its then-new blockchain fund. As of August, the firm had $4.7 billion in assets under management.

Tiger Management alum Dan Morehead founded Pantera in 2003 as a global hedge fund which later shifted its focus to digital currencies and since then has backed more than 80 blockchain companies and 65 early-stage deals, including Coinbase, Circle, and Ripple.

The reservations of Pension funds, sovereign wealth funds, endowments, and other institutions are surely dissipating as they increasingly invest in crypto space this year. “Institutions are coming” is certainly not a meme anymore.

Banks are also increasing their efforts with Fidelity, UBS Asset Management, and State Street Global Advisors, confirming that they are looking into the potential of offering exposure to crypto, much like rivals BlackRock and Invesco.

Assets in European exchange-traded products (ETPs) and mutual funds with crypto exposure have topped €10.5 billion, according to Morningstar data.

Fidelity said it was “keeping close to the evolution of cryptocurrencies” as part of their wider exploration of the potential for digital assets, while Clemens Reuter, global head of ETFs at UBS, said, “(Cryptocurrency is) an area everyone needs to look at the moment.”

Citi is also hiring 100 people over the next several months to bolster its blockchain and digital assets divisions. The bank has also made Puneet Singhvi the head of digital assets for its Institutional Clients Group (ICG) as of Dec. 1.

“We are focused on assessing the needs of our clients in the digital asset space,” Citi has said in a statement.

Singapore sovereign wealth fund Temasek is another one hiring more blockchain talent to lead the efforts in exploring opportunities in AI and Blockchain technologies, “which the firm believes are long-term trends and will have a transformational impact across multiple industries and geographies.”

As per the job description on LinkedIn, Temasek is prioritizing projects on multi-currency payments, financial assets tokenization, and self-sovereign identity with a secondary focus on making select investments into web 3 venture funds and direct investments.

Read Original/a>
Author: AnTy

CBDC Is A “Better” Alternative to Stablecoins, Which Are Unlikely to be Regulated Money: BoE Governor

CBDC Is A “Better” Alternative to Stablecoins, Which Are Unlikely to be Regulated Money, says BoE Governor

Andrew Bailey, the Governor of Bank of England, yet again shared his criticism of stablecoins as he said that he did not believe that stablecoins are likely to evolve into safe, regulated money, which means central bank digital currencies (CBDCs) will more likely be the future for electronic payments.

“I think we have two choices broadly,” Bailey told lawmakers in the upper house of Britain’s parliament as part of an inquiry into the future of digital payments.

“Is it going to evolve to some world of (asset-) backed stablecoins which has money-like features which could be regulated? I must say … I am sceptical about that. Or … is the better contribution, particularly to financial stability, to say the better alternative to that may be a central bank currency of digital form?”

Commenting on stablecoins, Bailey said out of the $2.5 trillion crypto market cap, which is around the level of the FTSE 100, “95% of it is unbanked crypto-assets,” and the other 5% are stablecoins, “some of which are more stable than others.”

He also warned that crypto-assets do have “all the potential to be a threat to financial stability, which is why we think we do need to take action.”

This month, the BoE and Britain’s Treasury said they would hold formal consultations next year on whether to move forward with a CBDC, which, if approved, would be introduced in the second half of the decade.

On Tuesday, Bailey said he would not expect the BoE to offer digital bank accounts directly to savers.

“We do not see this as the Bank of England moving into the retail bank account business through a central bank digital currency,” he said while speaking to the Lord’s Economic Affairs Committee.

The BoE would instead provide the means of settlements to a regulated platform on which banks and even alternative digital wallets holders would operate. The central bank, Bailey said, would need power over these firms on the platform to protect privacy.

According to him, work on a CBDC was intended to solve cash and retail transactions problems and not as a tool to implement unconventional monetary policy such as a negative interest rate.

Bailey further warned that allowing the private sector to manage the shift toward digital currency could result in the bank regulating big tech firms. “The question we’re going to face is… would we try to regulate” private tech firms creating digital money, he said.

Read Original/a>
Author: AnTy

Tipping Point for Australia’s $2.4T Pension Fund Market, First Super Fund Gives Crypto A Go-Ahead

A Tipping Point for Australia’s $2.4 Trillion Pension Fund Industry? First Super Fund Gives Crypto A Go-Ahead

Amidst the concern among Australia’s pension fund industry regarding investing in crypto, Rest Super has become the first Australian superannuation fund to signal interest in exposing member portfolios to the asset class.

Rest Super’s CIO Andrew Lill gave crypto the go-ahead at the fund’s annual general meeting on Tuesday evening, telling members that a small portion of their funds will soon be invested in crypto assets.

“It’s still a very volatile investment, so any allocation exposure we make to cryptocurrencies is likely to be part of our diversified portfolio as initially a fairly small allocation that may, over time, build.”

“We see it as a very interesting and important part of our portfolio going forward into the future.”

The fund managing $66 billion said while it isn’t committing an investment in the immediate future, they are “certainly” considering medium-term exposure and are currently “conducting extensive research” into the nascent asset class before making any decisions.

“We are also considering the security and regulatory aspects of investing in this class.”

As we reported, Australia’s $2.4 trillion pension fund industry has been wary of adopting cryptocurrencies.

Ross Barry, who oversees A$27 billion at superannuation fund Spirit Super had called crypto “too risky to be considered for institutional portfolios” but said it would be “remiss” of them not to keep an eye on its potential.

“We don’t see cryptocurrency as investable for our members,” came from Paul Schroder, CEO of AustralianSuper, the country’s largest pension fund with A$244 billion AUM but added that there is interest in DeFi.

Lasanka Perera, COO at crypto exchange Independent Reserve, told Business Insider Australia that most fund managers — mid-market companies and family offices — are already exposed personally.

But as the much larger companies and funds materially invest in crypto for generating yields and capital gains, it could trigger a wave of institutional crypto investment despite resistance from major investors, said Perera.

“There is huge resistance, but I think it’ll happen sooner rather than later,” he said. “So, it might seem to us like it may take five or 10 years for super funds to allow their investors to get crypto exposure. But I think if one goes, then all of a sudden you see a few others get into it.”

Read Original/a>
Author: AnTy

Major US Banking Regulators Finish “Policy Print” and Release 2022 Crypto Roadmap

Major US Banking Regulators Finish “Policy Print” and Release 2022 Crypto Roadmap

Top US banking regulator said on Tuesday that banks must seek and obtain written permission from their bank supervisors before engaging in cryptocurrencies.

The Office of the Comptroller of the Currency said that before taking on activities like providing custody services for crypto assets, banks must demonstrate they have appropriate risk management tools.

“I said the next few years will be the most important in the history of crypto policy,” commented Jake Chervinsky, head of Policy Blockchain Association. “Here’s proof: the major US banking regulators just finished a crypto “policy sprint” & say 2022 will be a big year. Get ready.”

On Tuesday, the Federal Reserve, Federal Deposit Insurance Corporation, and OCC released a joint statement, saying that they see the potential opportunities presented by the emerging crypto asset sector, but at the same time, they recognize the risks for banking organizations, their customers, and the overall financial system.

To provide clarity, the agencies recently conducted a series of inter-agency “policy sprints” focused on crypto and are now providing a roadmap of future planned work.

The focus of the sprint work included developing a commonly understood vocabulary, identifying and assessing key risks, including considering legal permissibility related to potential crypto activities conducted by banking organizations, and analyzing the applicability of existing regulations and guidance.

The staff also reviewed and analyzed activities banks may be interested in, such as crypto asset custody, facilitation of customer purchases and sales of crypto, loans collateralized by crypto, activities involving payments and stablecoins, and those that may result in the holding of crypto on a banking organization’s balance sheet.

The agencies said they would also evaluate the application of capital and liquidity standards to crypto for US banks. In addition, they will continue to engage with the Basel Committee on Banking Supervision and other relevant authorities.

“Based on this preliminary and foundational staff-level work, the agencies have identified a number of areas where additional public clarity is warranted.”

As a result, the agencies have developed this roadmap for cryptocurrencies. Throughout 2022, they plan to provide greater clarity on whether certain crypto-related activities conducted by banks are permissible, compliance with existing laws and regulations, and expectations for safety and soundness.

Read Original/a>
Author: AnTy

“Fear” in The Crypto Market And Bitcoin’s Correlation With S&P 500 Climbs to Highest Level of 2021

Crypto assets are not really having a good time, with Bitcoin stuck around $56,500 and Ether below $4,300.

But crypto assets are not alone in that as speculative stocks aren’t any different as losses picked up in very-high-priced technology names as the bond market started to price in higher odds of rate hikes next year following President Joe Biden picking Jerome Powell for a second term as the Federal Reserve chairman.

“The big-cap tech names have become synonymous with the risk-on/risk-off trade. When the big-cap tech names move in a significant way, other risk assets move in tandem,” said Matt Maley, chief market strategist for Miller Tabak + Co.

This has the 100-day correlation coefficient of Bitcoin and the S&P 500 climbing to 0.33, which is among the highest readings of the year.


A coefficient of 1 shows a strong correlation, while minus-1 would show they’re moving in opposite directions. The current figure means when stocks move up, Bitcoin is likely to do the same, and vice versa.

“The recent drawdown in Bitcoin and the rest of the cryptocurrency ecosystem has been tied to the selloff in the more risky growth names,” Art Hogan, chief market strategist at National Securities. “So you’re seeing cryptocurrencies come off, and you’re seeing the high-flying growth names come down.”

The lack of bullishness in the crypto market, except for particular crypto-assets, has the market sentiments turning to “fear,” as per Crypto Fear & Greed Index.

While some may feel this might be the end of the crypto market, others believe this could be a sign of an extended cycle.

“It’s very possible “extended cycle” could partially play out. Bitcoin could top early January or whatever. ETH a bit later on. Alts in April and maybe DeFi even separately from other alts. Not everything must converge on one top point in time,” said popular crypto investor @bitcoinpanda69.

Currently, there are a few potential factors that are playing a part in the market weakness, including a shifting macro outlook and crypto market conditions.

Within crypto, as price drops, open interest for BTC and ETH, which is a proxy for leverage, has “started to decrease as pressure is placed on existing long positions,” as per Coin Metrics.

As for Bitcoin miners, who are natural BTC sellers, their selling pressure has been minimal and is trending lower. Moreover, they use OTC desks to minimize their impact on the price. Recently, miners have started to HODL their BTC mining rewards.


On a macro front, with the US bond yields, especially with shorter-duration maturities, on a sharp rise over the last few weeks, capital might be reshuffling from riskier crypto assets to a “risk-free” rate of return.

Amidst all this, JPMorgan Chase CEO Jamie Dimon couldn’t help but poke at cryptocurrencies. “It is not really a currency,” Dimon said at the Boston College series of CEO interviews.

These “crypto tokens” have no intrinsic value and have rallied on speculation fueled by government stimulus payments, he said, adding, “It is hysteria.”

Read Original/a>
Author: AnTy

Bitcoin Chivo Wallet Could “Increase Growth” But Calls for “Narrowing” BTC Law Due to High Volatility

IMF says Bitcoin Chivo Wallet Could “Increase Growth” But Calls for “Narrowing” BTC Law Due to High Volatility

The IMF has released its concluding statement on El Salvador adopting Bitcoin as legal tender alongside the US dollar.

In IMF’s discussion with El Salvador, they covered the regulation and supervision of Bitcoin services providers and e-wallet Chivo, but the latest plans to issue sovereign bonds and use the proceeds to buy Bitcoin and fund infrastructure that came this past weekend were not discussed with the authorities.

As we reported last week, El Salvador’s president, Nayib Bukele, announced issuing $1 billion in Bitcoin bonds, half of which will be used to market buy BTC.

In its risks section, the agency said unaddressed regulatory and supervisory gaps related to the use of Bitcoin presents sizable risks to the economic outlook.

At the same time, it noted that gains from financial inclusion and improved payment systems due to the introduction of a public e-wallet in USD could increase growth.

The statement also noted that El Salvador’s economy rebounded quickly from the pandemic that interrupted ten years of growth with the help of a Rapid Financing Instrument (RFI, US$389 million) approved in April 2020.

High remittances and public investment also helped a strong recovery, with the economy projected to grow by about 10% in 2021 and 3.2% in 2022.

In its Bitcoin section, the IMF welcomes the efforts to improve financial inclusion and raise growth but said risks arising from this should be addressed as well.

The agency pointed out the high price volatility of the cryptocurrency as the reason for significant risks to consumer protection, financial integrity, and financial stability, which also gives rise to fiscal contingent liabilities.

“Because of those risks, Bitcoin should not be used as a legal tender,” it said, recommending narrowing the scope of the Bitcoin law and strengthening the regulation and supervision of the new payment ecosystem for consumer protection, anti-money laundering, and counter financing of terrorism (AML/CFT), and risk management.

The IMF further called for Chivo wallet to segregate and ring-fence reserve assets, USD and BTC.

As for the recently announced plans to use the proceeds of new sovereign bond issuances to invest in Bitcoin, it “will require a very careful analysis of implications for, and potential risks to, financial stability,” IMF said in the statement.

Read Original/a>
Author: AnTy

LATAM E-Commerce Giant to Allow its Millions of Users to Buy, Store, & Sell Crypto via Digital Wallet

LATAM E-Commerce Giant to Allow its Millions of Users to Buy, Store, & Sell Crypto via Digital Wallet

MercadoLibre is the latest company to join crypto as soon it will offer its customers in Brazil the ability to buy, sell, and hold cryptocurrencies using its digital payments app.

MercadoLibre is the largest Latin American company by market cap, and through crypto, it is expanding its financial products.

The crypto feature was already available to a select small group of clients earlier this month and will be rolled out broadly in the coming months, said vice president Tulio Oliveira. Mercado Pago’s digital wallet has 16.8 million unique users as of the third quarter of 2021.

The news was first reported by Bloomberg, which was retweeted by Mercado Libre co-founder and CEO Marcos Galperin, who also said that users of both Mercado Livre, the Brazilian branch, and its fintech arm Mercado Pago would be able to “buy, store and sell crypto” starting this week.

The company has been planning its crypto move for months now as back in August, President Osvaldo Gimenez said Bitcoin and Ethereum “could be a revolution in finance.”

Before that, in May, MercadoLibre had also disclosed its $7.8 million Bitcoin purchase as part of the treasury strategy. Prior to that, its Argentine real estate platform started accepting BTC for the purchase and sale of properties.

In a statement on Monday, MercadoLibre said that it was entering the crypto space in Brazil together with “a world-class custodian” but didn’t mention who it is partnering with. The company is “analyzing all financial and regulatory aspects surrounding this technology,” it added.

Read Original/a>
Author: AnTy

Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B

Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B

Bitcoin again accounted for the lion’s share of last week’s inflows; meanwhile, compared to Ethereum’s $12.6 million inflows, institutional investors poured in $8.5 million in Solana.

Cryptocurrency funds and products posted another week of inflows as institutional investors poured in $154 million in the week ended Nov. 19. This brings in year-to-date crypto inflows to $9.2 billion, far surpassing $6.7 billion in 2020.

In contrast to crypto, investors have ploughed a total of $1 trillion into equities, according to BofA. “10-year U.S. real rates now -4.6%, a level in the past 200 years that has been associated with panics, inflations, wars & depression, and a level today increasingly responsible for froth in crypto, commodities, and U.S. stocks,” said Michael Hartnett at BofA.

In crypto, Ethereum had its fourth straight week of inflows at $12.6 million, bringing this four-week tally to about $480 million.

Meanwhile, some altcoins like Tron and XRP saw minor outflows for the first time in many months, led by Cardano at $2.1 million.

TRX 0.98% TRON / USD TRXUSD $ 0.10
Volume 2.2 b Change $0.00 Open $0.10 Circulating 71.66 b Market Cap 7.37 b
9 h Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 1 w 13 Consecutive Week of Inflows Send Bitcoin AUM to A Record $56B and Ether’s Past $21B For The First Time 2 w Sharp Pick Up in Demand: BTC Price Aims for $69k as Inflows into Bitcoin Hit A New Record of $8.9 Billion
XRP 3.07% XRP / USD XRPUSD $ 1.07
Volume 3.1 b Change $0.03 Open $1.07 Circulating 47.16 b Market Cap 50.38 b
9 h Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 6 d Ripple Strikes at the SEC’s Crypto “Monopoly” by Proposing Bigger Role to CFTC 1 w 13 Consecutive Week of Inflows Send Bitcoin AUM to A Record $56B and Ether’s Past $21B For The First Time
ADA -1.52% Cardano / USD ADAUSD $ 1.75
Volume 1.77 b Change -$0.03 Open $1.75 Circulating 33.31 b Market Cap 58.34 b
9 h Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 1 w 13 Consecutive Week of Inflows Send Bitcoin AUM to A Record $56B and Ether’s Past $21B For The First Time 2 w Sharp Pick Up in Demand: BTC Price Aims for $69k as Inflows into Bitcoin Hit A New Record of $8.9 Billion

Among other altcoins, Solana recorded inflows of $8.5 million. Over the last month, its inflows totaled $43 million versus Cardano at $23 million. SOL 2.99% Solana / USD SOLUSD $ 222.05
Volume 2.33 b Change $6.64 Open $222.05 Circulating 303.78 m Market Cap 67.45 b
9 h Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 4 d Allocate to Cryptocurrencies to “Beat Inflation” And For “Hypergrowth” in Portfolio, says Strategist 5 d “Ethereum Is The Clear Winner,” says ConsenSys CEO as MetaMask Users Grow 38x in Last Year

Bitcoin Continues To Lead

According to the weekly data from digital asset manager CoinShares, Bitcoin, yet again, accounted for the lion’s share of these inflows at $114.4 million. So far this year, total inflows into Bitcoin products and funds have hit $6.7 billion.

Bitcoin continuing to see the majority of inflows has helped it retain its assets under management (AuM) share of 67% over the last month amongst investment products. This may be due to the recently launched ETFs in the US, which saw over 90% of inflows into Bitcoin, as per the report.

The inflows came despite Bitcoin falling from its all-time high of $69,000 to nearly $55,500, “seemingly not impacting the positive investor sentiment.”

According to Glassnode, on-chain data showed that bitcoin holders took profit which is to be expected as price climbs, and it is also typical for any bull market. “As the realization of profits increase, so too does the probability of establishing a macro top,” it noted.

As of writing, BTC/USD is trading around $57k.

“Bitcoin was ripe for a pullback, and it might not be over yet before traders confidently feel a bottom has been made,” said Edward Moya, senior market analyst at OANDA.

Meanwhile, this week, Los Angeles Rams’ newly-acquired wide receiver Odell Beckham Jr. announced that he would receive his total salary from the Rams in BTC.

“It’s a NEW ERA & to kick that off, I’m hyped to announce that I’m taking my new salary in bitcoin thanks to CashApp,” he wrote on Twitter.

Read Original/a>
Author: AnTy

DOGE Pumps on Elon Musk’s Enquiry to Binance, CZ Strikes Back

DOGE briefly pumped 6.9% to $0.232 as bots got activated with Elon Musk tweeting about Dogecoin.

Since then, DOGE has pared half of its gains and, as of writing, is trading at $0.224, down more than 69% from its all-time high in early May.

Tesla CEO enquired leading cryptocurrency exchange Binance chief executive officer Changpeng Zhao about the issues users are facing with Dogecoin.

“Hey CZ, what’s going on with your Doge customers? Sounds shady,” wrote Musk on Twitter on Tuesday.

Recently, some Binance users received some DOGE as the transactions that were stuck due to insufficient fees from a year ago were suddenly relayed successfully post an update.

“What we believe has happened is the previously stuck transactions have been retried automatically, as would happen on each node restart after upgrade – and went through since now the minfee is lower,” explained Dogecoin developers on Twitter.


Elon’s tweet ended up pumping DOGE, which went back to reclaiming the 10th spot from Ethereum (ETH) competitor Avalanche, whose token AVAX has been pumping in response to its partnership with “big four” professional services firm Deloitte for the improvement of US disaster relief funding.

The strategic alliance Deloitte was announced last week to improve state and local governments’ recovery from natural disasters and public health emergencies.

Moving in the opposite direction of the broad crypto market, which has been going down for the past couple of weeks, AVAX hit its all-time high of $145 over the weekend to acquire a $29 billion market cap and push above Dogecoin and Shiba Inu (SHIB).

Volume 1.89 b Change $0.00 Open $0.00 Circulating 10 t Market Cap 23.01 b
10 h DOGE Pumps on Elon Musk’s Enquiry to Binance, CZ Strikes Back 4 d Bitcoin’s Longest Slump Since May Severs its Pandemic-era Correlation With Tech Stocks 5 d Ether Drops Under $4k and Bitcoin to Nearly $56,500 But Mining Remains Immensely Profitable
AVAX -8.15% Avalanche / USD AVAXUSD $ 123.88
Volume 1.96 b Change -$10.10 Open $123.88 Circulating 223.85 m Market Cap 27.73 b
10 h DOGE Pumps on Elon Musk’s Enquiry to Binance, CZ Strikes Back 5 d “Ethereum Is The Clear Winner,” says ConsenSys CEO as MetaMask Users Grow 38x in Last Year 6 d Brave’s Self-custody Built-in Crypto Wallet to Give 42 Million Users Access to DApps for EMV-compatible Chains
ETH 6.35% Ethereum / USD ETHUSD $ 4,342.16
Volume 22.04 b Change $275.73 Open $4,342.16 Circulating 118.46 m Market Cap 514.38 b
9 h Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 10 h DOGE Pumps on Elon Musk’s Enquiry to Binance, CZ Strikes Back 10 h Dollar Sends Warning Signs for Risky Assets including Bitcoin and Crypto

But today, AVAX’s price movements have aligned with the market, and the coin is now trading just under $130, down 11.5% from its high. The coin is up 3,385% YTD.

Back in September, the Avalanche Foundation raised $230 million from a private sale of the tokens to Polychain and Three Arrows Capital, which also supported its $200 million-plus Blizzard fund announced to foster development on Avalanche.

“It’s another example of faster, cheaper Ethereum competitors doing well,” said Jonathan Cheesman, head of institutional and OTC sales at crypto derivatives exchange FTX. “There’s a huge wealth effect and a lot opportunistic and mobile capital.”


Meanwhile, Elon’s inquiry led Binance to share what exactly is going on with Dogecoin withdrawals at the exchange.

“The root cause is a technical issue during the recent upgrade process that caused old transactions to be resent to 1,674 users,” said the exchange noting they have to rebuild the wallet entirely, which is causing the delay and may still take another week or so.

The issue is limited to Binance, and no other platform is affected, which the exchange said is because they “have a different technical wallet set-up for DOGE.”

The Binance team also said that they are aware that its users have received old transactions and cannot withdraw their DOGE tokens and asked them to “return” these coins.

Elon responded to this explanation with, “Doge holders using Binance should be protected from errors that are not their fault.”

But this didn’t end here. CZ struck back at Elon by asking him about the incident involving 12,000 Tesla vehicles being subject to a safety recall due to a communication error causing unexpected activation of the emergency brake, reported earlier this month by the National Highway Traffic Safety Administration (NHTSA).

Besides the clap back, CZ also clarified that it’s an issue with the latest DOGE wallet, adding, “apologies for any inconvenience that may have caused you.”

Sovereign Wealth Funds For Investment

Cryptocurrency exchange Binance is in talks with sovereign wealth funds for investment in the leading platform in order to better its relationship with regulators and governments, CEO Changpeng Zhao told the Finance Times.

The exchange believes selling sovereign wealth funds’ stake in Binance would help improve its “perception and relationships” with various governments, CZ said in the interview. “But it may also tie us to specific countries . . . which we want to be slightly careful with,” he added.

And while regulators are worried about illegal activity, Zhao said the company was “probably better than banks” for having checks in place, such as KYC and AML technology.

Binance’s US entity, meanwhile, is preparing to raise capital through a public listing. Singaporean business of Binance, on the other hand, is backed by Vertex Ventures, the venture capital arm of state-backed investment company Temasek.

As for Binance’s investment, he didn’t share which funds they are in discussions with and added that “The ticket size involved will not be small . . . it won’t be a short process.”

Binance is the largest spot crypto exchange by big margins in the world, which recorded $32.7 billion in trading volume in the last 24 hours, according to CoinGecko. In the Bitcoin futures market as well, it is leading with $35.68 bln and $5.67 bln in OI, the same as Ether at $16.13 bln and $2.40 bln, respectively, as per Skew.

At the Bloomberg New Economy Forum, CZ had said that the platform was recording daily transaction volumes of $170 bn, compared with $10bn-$30bn two years ago.

The exchange recorded 174.2 million visits in October, down from 251.34 million in May.

Getting Settled

Binance is also hunting for a new global headquarters in cities including Singapore and Dubai. Binance, CZ said, has increasingly gravitated towards governments where the company can communicate “more directly” with regulators, like Singapore.

Most countries do not have clear guidelines for products like NFTs and gamified tokens, so Binance was waiting for more clarity before “committing to a single jurisdiction,” he said.

According to the Irish Independent’s latest report, Binance is stepping up its plan for a headquarter in Ireland.

The company has already broadened its corporate presence in Ireland by setting up three new firms, Binance (APAC) Holdings, Binance (Services) Holdings, and Binance Technologies, and is now registering another one called Binance Exchange (Ie). Last month, CZ had said that they are indeed eyeing Ireland for its HQ.

“Historically, we claim that we don’t have headquarters,” he told Reuters at the time. “We are actually just in the process of establishing a few headquarters in different parts of the world.”

Dollar Sends Warning Signs for Risky Assets including Bitcoin and Crypto

The US dollar has hit a new all-time high today at 96.6, last seen in mid-July 2020. In mid-March last year, USD went as high as 103, and after bottoming out in late May and early June, it has been mostly trending up ever since.

The latest uptrend in USD came as Federal Reserve Chair Jerome Powell was reappointed for a second term, encouraging bets on higher US interest rates.

With the Fed already announcing the paring of its bond purchases, the growing expectation for tighter monetary policy and an acceleration in economic data has the dollar well-positioned against other major currencies.

As we have been noting, the slowdown or removal of liquidity from the market is not good for the prices of risky assets, which could negatively impact crypto prices.

“A stronger greenback would have you believe the same tailwinds that propelled global asset prices—including BTC and crypto—over the last 18 months are starting to reverse course,” commented Delphi Digital.

Already, this week, crypto-asset prices tumbled, with Bitcoin going to $55,600 and Ether to $4,020.


As a result, funding rates are resetting and even briefly turning negative since last week as after hitting ATH at $69,000 two weeks back, the market has been struggling to be bullish.

On most exchanges, funding rates are hovering in neutral territory, the highest on OKEx at 0.0257%, indicating bullish demand is muted. At $23.36 bln, Bitcoin’s open interest meanwhile remains significantly higher than September lows of $13.11 bln but down from $28.85 bln ATH on Nov. 10.

This USD is also rallying to a 16-month high amidst renewed lockdown fears in Europe after last week investors sought a safe haven on inflation worries. Surging US inflation and the prospect of a sooner than expected rate hike by the Fed has helped DXY run higher, putting pressure on riskier assets and emerging market currencies.

Emerging markets are already struggling with rising inflation and especially as the dollar strengthened. The Turkish lira (TRY) actually hit record lows against the USD.

This devaluation of lira since September (-35%) has been mirrored by strong growth in BTC-TRY trade volumes, noted digital asset data provider, Kaiko. The increase comes despite Turkey banning the use of crypto for payments back in April.


According to Chainalysis, currency devaluation has been among the main drivers of crypto adoption in the country, accounting for a large percentage of crypto use in the Middle East.

Meanwhile, the Turkish central bank has cut its policy rate by 100bsp, further contributing to the lira’s historic meltdown. “This could favor crypto assets which are seen as a more stable investment alternative,” said Kaiko.

The post Dollar Sends Warning Signs for Risky Assets including Bitcoin and Crypto first appeared on BitcoinExchangeGuide.

Read Original/a>
Author: AnTy