12 January

“The market panic that ensued after the collapse of Sam Bankman-Fried’s FTX exchange in early November seems to be abating.

The three-month bitcoin (BTC) futures listed on the Chicago Mercantile Exchange (CME), widely considered a proxy for institutional activity, are drawing a premium over the the cryptocurrency’s going spot market price for the first time since FTX went bust. The renewed premium indicates that institutional activity is no longer concentrated on the short side.

While CME’s basis has recovered, the term structure remains in backwardation as institutional investors maintain a cautious view on bitcoin and less liquid further dated expiry dates.”

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Decentralized finance (DeFi) platform Ondo Finance has launched three products designed to allow stablecoin holders globally to invest directly in bonds and U.S. Treasurys. Ondo estimated the regulated products could attract more than $100 billion in stablecoins that currently may not be earning yields for their holders.

The OUSG fund invests in short-term government Treasurys, earning 4.2% per annum; the OSTB invests in short-term bonds, earning 5.45% per annum; and OYHG invests in high-yield corporate bonds, paying out 8% per annum to depositors. Fees for these funds are currently listed at 0.15%.

The funds deposited on Ondo will further be invested in relevant exchange-traded funds offered by BlackRock and Pimco. Coinbase Custody will custody any stablecoins the fund holds, while Coinbase Prime will handle conversions between stablecoins and fiat.

Large stablecoin holders, including start-ups and [decentralized autonomous organizations], are faced with a choice between having their purchasing power eroded away by inflation or taking too much risk with the current set of on-chain yield offerings.

Ondo’s new offering also highlights a growing trend of bringing traditional, so-called real-world assets (RWA) such as bonds, real estate and consumer credit to the blockchain.”

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“Crypto exchange FTX has recovered more than $5 billion in different assets, not including another $425 million in crypto held by the Securities Commission of the Bahamas, a bankruptcy attorney said during a hearing Wednesday.

The announcement substantially raises the total FTX claims it holds, after the company’s new leadership said it could only find just over $1 billion on Dec. 20, 2022. The total amount FTX owes its creditors is still unclear. In initial bankruptcy filings, the company’s management checked off the box indicating a figure between $1 billion and $10 billion.

We know what Alameda did with the money. It bought planes, houses, threw parties, made political donations. It made personal loans to its founders. It sponsored the FTX Arena in Miami, a Formula One team, the League of Legends, Coachella and many other businesses, events and personalities.

He added that this has led to a “shortfall in value” to repay customers and creditors.

The amount of the shortfall is not yet clear. It will depend on the size of the claims pool and our recovery efforts. But every week we come closer to completing the work necessary to estimate recoveries for the purposes of a plan of reorganization.”

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“Known for its popular hardware wallets, Ledger is now adding its first blockchain game to the Ledger Live software app. Should Ledger Live someday turn into a thriving destination for Web3 games, it would give creators another option to reach players amid Apple’s strict new policy on NFTs and Steam’s total rejection of NFTs.

Cometh Battle is a free-to-play sci-fi digital card game that released its open beta version on Ethereum scaling network Polygon back in May 2022. Its in-game assets are NFTs that can be bought, sold, or rented. It’s also PVP, meaning each player is pitted against another.

This partnership with Ledger not only increases the security of our ecosystem but also aims to onboard more gamers safely into Web3. We want to provide an environment where players can enjoy the game without constantly being on alert anytime they sign a transaction.”

Congressman Tom Emmer wrote a letter to the Department of the Treasury five months ago asking a number of questions surrounding its Tornado Cash ban, noting that ‘technology is neutral, and the expectation of privacy is normal.’

Because Tornado Cash remains the subject of active litigation, it would not be appropriate for Treasury to comment further on the entity’s designation at this time,’ Assistant Secretary for Legislative Affairs at the Treasury Jonathan Davidson said in a Monday letter to Emmer.

Coinbase, the biggest digital asset exchange in the U.S., is funding a lawsuit against the Treasury Department for the move, claiming the ban is ‘punishing people who did nothing wrong and results in people having less privacy and security.'”

Hong Kong’s Securities and Futures Commission (SFC) will allow retail trading in a select group of cryptocurrencies as it attempts to introduce regularity clarity to crypto.

The watchdog plans to propose a subset of tokens that will be approved. Leung said only “highly liquid” assets will be on the list. Signals out of Hong Kong on the territory’s aspirations for its crypto regime have been mixed in recent months.”

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