29 January

“WisdomTree Investments is prepping the launch of a digital finance app that will allow customers to trade cryptocurrencies and other financial products. The move will expand the New York-based asset manager’s purview with a greater focus on retail traders.

The firm wants the app to “provide a core suite of savings, payments and investment” services while avoiding the worst of “trading and speculation.” Unlike Robinhood’s crypto service, “WisdomTree Prime” will be “blockchain native” at launch.

WisdomTree manages over $76 billion in assets globally. The investment firm seeks a beta launch in some U.S. states during the second quarter and expects a national rollout later this year.”

See Also: $8B New York commercial bank to offer Bitcoin services

“Visa users made $2.5 billion in payments with crypto-connected cards during the company’s fiscal first quarter ended Dec. 31. Kelly said Visa continues to “lean into the crypto space” and improve areas such as connectivity, scale, consumer value propositions, reliability and security for crypto offerings to continue growing.

More than 65 crypto platforms and exchanges, including Coinbase and BlockFi, have partnered to issue Visa credentials. More than 100 million vendors in the Visa network are also now accepting Visa crypto payments, the company added.

See Also: Google Cloud Hiring Team of Blockchain Experts

“A scandal has rocked investor faith in a popular stablecoin; as users rush to exit, the clamor is threatening to throw the asset off its dollar peg. Even worse, some observers worry that one stablecoin losing its peg could have a “contagion” effect, diminishing the value of multiple stablecoin assets.

Abracadabra’s MIM algorithmic stablecoin is among the victims of the crisis in confidence. The ensuing low liquidity briefly pushed MIM off its dollar peg on Curve throughout the day. This, in turn, has thrown Terra’s UST stablecoin into flux. In addition to a MIM-UST Curve pool linking the assets, Abracadabra offers a “degenbox” product that allows for leveraged yield farming with deposits into UST – a dynamic that means MIM is heavily collateralized with UST.

This creates a potentially dangerous link where if one of these stablecoins falter, the other will, in turn. Thursday’s stablecoin volatility is due to investors running for the exits.

What we’re seeing now [is] a lot of people withdrawing to coins that aren’t UST or MIM. So far, on the hard dips we’ve seen it didn’t seem to affect the other stablecoins. If anything, people are running away from MIM and UST and to other stablecoins.

However, there are incentive-based stabilization mechanisms for the assets that so far have held up under the strain of major liquidity providers withdrawing. If users deposit 3pool stablecoins (USDC/DAI/USDT) into Curve when MIM or UST are depegged from a dollar price, the timing grants the users a “bonus” to their positions.

While Thursday’s events have tested the peg of each stablecoin, both have thus far withstood the volatility.”

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See Also: Users flock to Curve amid lack of stablecoin liquidity on major DEXs

A group of executives from major firms in the crypto industry have formed a political action committee (PAC) to support candidates running in November’s midterm elections.

Backers of the PAC include top executives at crypto exchange FTX and SkyBridge Capital, the hedge fund led by Anthony Scaramucci, who was briefly a White House communications director under President Donald Trump.

GMI PAC is the crypto community’s campaign arm and we are here to stay.”

“The bill must pass the Arizona state senate and house before Gov. Doug Ducey, a Republican, could sign it into law. Whether such a law could go into effect is questionable, given that the U.S. Constitution doesn’t allow individual states to create their own legal tender.

Don Huffines, a Republican real estate developer and current candidate for Texas governor, recently said he would make bitcoin tender if he’s elected.”

See Also: Texas Governor Greg Abbott Is Inviting Bitcoin Miners to Stabilize Electrical Grid

“The road map, signed by the deputy chairman of the government, suggests introducing know your customer (KYC) and anti-money laundering (AML) rules for cryptocurrency platforms, defining their regulatory status, mandating a supervisory body and establishing penalties for those who don’t play by the rules.

The timetable says that by May the Ministry of Finance should have designed a system of compliance control for peer-to-peer (P2P) platforms. By November, anti-money laundering standards set by the global Financial Action Task Force (FATF) should be adopted. By December, rules for registration and reporting by crypto platforms should be created.”

See Also: Trezor Backtracks on ‘Travel Rule’ App for Self-Hosted Crypto Wallets Amid Uproar
See Also: Hong Kong Regulators Impose Limits on Investing in Spot Crypto ETFs

The Supply Chain Bets on Blockchain