3 November

A number of big crypto custodians – Anchorage, Coinbase and a number of others – have been contacted by banks about whether they’d be willing to be like the third-party custody providers for national banks whose customers want to invest in bitcoin.

Brooks speculated that due to the complexity of being a custodian, banks will seek to partner with or outright buy custodians to handle the cryptocurrencies invested with them.

Brooks also said the move by banks to offer crypto will increase the comfort level of retail investors with the asset and lead to further gains, saying, ‘I think the demand increase is going to be noticeable.’

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Dharma, has now enabled automated clearing house (ACH) purchases in 13 U.S. states. Purchasing tokens from a bank account incurs a 1.5% fee and there’s a limit of $25,000 in purchases per week. To access ACH services, Dharma is using the API of financial services company Plaid.

With the new feature, Dharma is betting it can stand out in the crypto space by making accessing blockchains easier, in much the same way Coinbase did.

Making an investment in DeFi has, up until now, been a bifurcated and highly technical process. Now, it’s as easy as downloading an app and connecting your bank account.”

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PayPal’s cryptocurrency service is going to expand rapidly in 2021, executives said on the payments giant’s third-quarter earnings call Monday evening. That includes crypto services coming to Venmo and international customers in the first half of 2021.

PayPal saw enough interest following its Oct. 21 announcement that the firm has increased weekly crypto purchase limits from $10,000 to $15,000.

When talking about central banks creating retail-facing digital currencies, Schulman added that PayPal is looking to create ‘the most expansive and compelling digital wallet in the world.'”

As Europeans are increasingly turning to digital in the ways they spend, save and invest, we should be prepared to issue a digital euro, if needed.

We’ve just launched a public consultation so that consumers and Europeans can actually express their preference and tell us whether they would be happy to use a digital euro just in the way they use a euro coin or a euro banknote knowing that it is central bank money.”

See Also: Mastercard President Says Crypto Patents Will Pay Off When Central Bank Digital Currencies Arrive

“Yi Gang said the pilot program, which has spanned multiple Chinese cities this year, has proven successful. Over 4 million transactions totaling more than 2 billion yuan ($299 million) have been conducted using the digital yuan.

Yi played down the prospect of an imminent launch, saying the digital yuan project is still in the early stages. China must still develop a ‘fairly complicated and fairly complete legal framework,’ he said, particularly around transparency.”

“The Reserve Bank of Australia (RBA) said the project will involve the development of a proof-of-concept (POC) for the issuance of a tokenized form of CBDC for use by wholesale market participants for the funding, settlement and repayment of a tokenized syndicated loan on an Ethereum-based DLT platform.

We are pleased to be collaborating with industry partners to explore if there is a future role for a wholesale CBDC in the Australian payments system.

The project is expected to be completed around the end of 2020 and a report will be issued on the project during the first half of next year.”

The SEC has increased limits dictating how much capital companies can raise before registering in a move that could be a boon for security token offerings (STOs).

Companies can now raise $5 million in total under Regulation Crowdfunding provisions (previously: $1.07 million), $75 million under Regulation A+ (previously: $50 million) and $10 million under Rule 504 of Regulation D (previously: $5 million).

SEC also relaxed certain restrictions governing document filing, solicitation practices and accredited investor investment limits.”

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“The blockchain halted block production at 10:00 UTC for some two hours. The event is notable as it validates centralization concerns raised against Tron, which already holds an infamous reputation in blockchain circles.

Tron uses a Delegated Proof-of-Stake (DPoS) consensus mechanism. DPoS blockchains sacrifice decentralization for throughput by centralizing certain transaction activities to majority nodes.”

“The top officers of HDR, the parent company of crypto trading platform BitMEX, which has been charged with facilitating unregistered trading and other violations, systematically looted $440,308,400 from HDR accounts, a civil lawsuit claims.

The suit claims the alleged looting occurred to reduce the amount of assets that could be seized by authorities when charges were brought.

An attached exhibit did not specify how the funds were seized but alleged that the executives began diverting BitMEX’s profits after becoming aware of possible charges in 2019.”

“After some initial turbulence, decentralized cloud storage network Filecoin’s recent mainnet launch is now opening up a range of applications that previously only existed in centralized Web 2.0 environments.

Filecoin really brings for the first time the ability to have a large scale application to be fully Web 3.0-native, so you can do things like video streaming or entire social networks, those kinds of applications are now possible in a Web 3.0 environment.

“Lightning node operators don’t have a way to notify nodes that they need liquidity. To solve the problem, Lightning Labs today came out with Lightning Pool, a marketplace where node operators can buy the liquidity they need to run the network. This helps everything run smoothly, but it also creates a new way of making money on the Lightning Network.

Businesses and node operators can use Pool to streamline their channel management processes.”

Derivatives are now at least 4.6x the size of spot volume, and we believe the trend will likely continue.

From 2Q2017 to 1Q2018, spot volume rose sharply from a low of roughly $58B to a high of $570B, before dropping off significantly to a low of $104B nearly two years later. Since then, derivatives have completely replaced spot as the dominant market, while spot volumes have failed to make a full recovery. Derivatives notional volume exploded from below $6B in 2Q2017 to over $1.7T by 3Q2020.”

“Nations working to take nuclear weapons out of commission should turn to blockchain to build trust and make the process more secure, according to a new policy report.

Blockchain would help parties to the Nuclear Non-Proliferation Treaty build trust and make dismantling nuclear weapons more ‘safe, secure and reliable.'”

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