“Swiss digital asset banking platform SEBA Bank said that it has launched an Ethereum staking service for institutions that want to earn yields from staking on the Ethereum network. According to the firm, the move is a response to the growing institutional demand for decentralized finance (DeFi) services.
The launch of our Ethereum staking services will enable institutional investors to play a key role in securing the future of the network, via a trusted, secure and fully regulated counterparty.
In June, crypto bank Anchorage Digital also announced its ETH staking service for institutional clients. Anchorage Digital co-founder Diogo Mónica said that institutional entry into ETH staking is a “win-win” situation for both the ecosystem and institutions.”
“It’s a question of when, not if, regulators will take aim at MakerDAO and the industry’s leading decentralized stablecoin DAI. With this assumption in mind, Christensen argued that the task now is thus to make DAI as attack-resistant as possible.
The call to arms also means that the project needs to prepare ‘for the likely possibility that DAI will have to become free-floating,’ or leave its peg to the greenback.
Christensen’s “Endgame Plan” would put a cap on how much of the project’s collateral is in Real World Assets, or RWAs. For example, Reif Financial Investments Inc. has collateralized real estate loans in exchange for DAI. This would also include Circle’s USDC stablecoin, of which roughly 50% backs DAI. As you can probably imagine, it’s much, much easier for regulators to crack down on these types of companies than it is to crack down on something like Ethereum.
However, by capping this type of collateral, there may not be enough attack-resistant (i.e., pure cryptocurrencies) collateral to supply continued demand for DAI. As supply slows because there are fewer ways to mint more DAI, continued demand could push the price of DAI past a dollar.
[Thus], Christensen also argued for the introduction of a “negative target rate,” essentially Maker’s version of negative interest rates, to drop demand for DAI. Much like in the real world, dropping interest rates into negative territory means that it costs currency holders to sit on their money. Dropping interest rates also makes borrowing, or in our case minting more DAI, much cheaper.
That’s the basic recipe for surviving any regulatory crackdowns, but the plan goes further, unpacking two more tools that ‘turn the free-floating of DAI into something that Maker can survive, and even thrive with.’
The only way to convince someone that owning an asset suffering from negative rates is good is by also convincing them that they need this asset to get other, more valuable assets. Here is where Christensen introduces the idea of so-called MetaDAOs and MetaDAO tokens. These mini-DAOs would have full autonomy to pursue any objectives they define, as well as hunting down any “profit-generating activities.” DAI holders could then yield-farm these new tokens.
Maker will not just become exciting once again; it will be the single most exciting and important place to be in all of crypto – and we have the perfect tool that allows us to capture that meta and hook people into our ecosystem: MetaDAO yield farming.
It’s a big, bold plan.”
“Financial regulators in South Korea want to bring security tokens, which are blockchain-based digital forms of traditional securities, into the scope of the country’s capital markets rules in an effort to formalize the products.
The FSC plans to publish guidelines for the issuance and commercialization of security tokens by the end of 2022. South Korea is speeding ahead with new plans to regulate the digital asset sector following after a turbulent market earlier this year.”
“We have singled out, for the first release of the digital euro, three use cases.
The three immediate applications will be peer-to-peer payments that enable transactions among family and friends; consumer-to-business payments in physical or online stores; and payments to or by governments.
Other potential uses of the CBDC – including the payment of wages, settlements among businesses, payments initiated automatically by machine and the functionality required to support decentralized finance – could still be considered in a later phase.
Officials at the central bank still have to decide where they stand on issues like how transactions with a digital euro will be settled and intermediaries be compensated before finalizing the start of development in September 2023.
Whether or not blockchain will be used as a technology is currently not in the investigation phase.”
“The two companies will promote e-commerce and marketing initiatives, while certain GameStop retail stores will carry FTX gift cards, according to a statement Wednesday. GameStop is also being given the label of FTX’s “preferred” retail partner in the U.S.
GameStop’s NFT marketplace went live this summer, and garnered strong volumes that eclipsed crypto exchange Coinbase’s (COIN) volumes.”