September 6

“Bakkt Warehouse, a qualified custodian of crypto trading platform Bakkt, is now accepting customer Bitcoin (BTC) deposits and withdrawals.

The launch of Bakkt Warehouse comes as the company prepares to roll out its platform for Bitcoin daily and monthly futures in the United States on Sept. 23. The platform will enable two types of physically-delivered Bitcoin futures with end-to-end regulated markets and custody.”

“BTC and ETH stand out as the only decentralized commodity monies. Only these have the liquidity, decentralization, and banking layers to give them a plausible path to status as reserve money for crypto finance. BTC is clearly in the process of being financialized primarily through crypto banks and ETH is clearly in the process of being financialized primarily through money protocols.

Realize the bulk of value appreciation in crypto is likely to come from commodity monies and the monetary premiums associated with them. This makes your money bets your most important bets in crypto. These are your long-termers. Your first stop for going bankless.”

“Offchain Labs has released the alpha version of its software, compatible with any Ethereum application to allow each smart contract to process more than 500 transactions per second.

It’s releasing its open-source Arbitrum code, which enables businesses and enterprises to build blockchain apps while preserving transaction speed and privacy.

The software is the latest to come out of Offchain Labs, which is led by former White House Deputy Chief of Technology Ed Felten.”

“Of the roughly 30 EIPs that were deliberated on by developers, six have been accepted for inclusion in Istanbul with eight other EIPs tentatively planned for a proceeding system-wide upgrade, or hard fork, newly dubbed ‘Berlin.'”

As currently designed and proposed, they do not take into account the microstructure of operating such a payment system. The risk of payment system gridlock, particularly during periods of stress, could have serious macroeconomic consequences.

Another risk pointed out in the note was that of negative yields.

Any system that relies on reserve-asset income to fund operational and other ongoing costs becomes unstable in a negative yield world […] a fully negative yielding Libra reserve has become a plausible (some would argue likely) risk.”

“PBoC’s digital yuan will be able to be transferred between users without an account and without a mobile or internet network, the report cites Mu as saying. Providing a user’s mobile phone has a wallet, the digital currency can be transferred to another person by placing the two phones in physical contact.

PBoC’s digital currency also doesn’t need a bank account to be used, and is ‘free from the control of the traditional bank account system.'”

“This suggests that investors are using the digital currency as a hedge against the yuan’s falling value.

Factors such as the ongoing trade war with the United States and central bank monetary easing policy are contributing to a weaker CNY/USD. However, a court ruling in July that Bitcoin was a protected virtual asset and legal in China, has added to its lure as a hedge. In addition, businesses in Hong Kong are also increasingly adopting Bitcoin as a form of protest.”

Platform A is unusable because of its contract size granularity, Platform B is not documented well and has an unwieldy leverage system.

Further doubts focused on Binance’s choice of reference for Bitcoin (BTC) exchange rates. Doublejump noted the sources include HitBTC, while others involve Huobi, Bittrex and Binance itself.”

“Novogratz is a former partner at Goldman Sachs who wants his firm Galaxy Digital to fulfil a similar role in the cryptocurrency space. The company has its sights on facilitating security token offerings, or STOs.

According to Bloomberg, as early movers in the cryptocurrency industry mature and start to generate real revenue and profits, it is likely that an increasing number of companies will want to go public.”