Deutsche Börse Takes $200 Million Stake in Crypto Exchange Kraken
Exchanges
”Deutsche Börse AG invested $200 million in Payward Inc., the parent of crypto trading platform Kraken, as the Frankfurt stock exchange operator moves to offer access to a wider array of securities over blockchain rails. The purchase of existing shares, which gives Deutsche Börse a 1.5% fully diluted stake in the company, is expected to close in the second quarter subject to regulatory approvals, according to a statement on Tuesday. The identity of the seller wasn’t disclosed. The transaction values Kraken — which plans to go public as soon as this year — at around $13.3 billion, according to Bloomberg calculations. It was valued at $20 billion in a November share sale.”
Source: Bloomberg
Goldman Sachs Makes Surprise Jump Into Bitcoin ETFs With a Product One Analyst Dubs ‘Boomer Candy’
ETPs
“Goldman Sachs has long been content to watch the crypto craze from the sidelines, but in a surprise move, the big bank on Tuesday revealed plans for its own product in the form of a Bitcoin Premium Income ETF. The new Goldman fund, which was described in a regulatory filing, is structured a little differently from traditional spot Bitcoin ETFs. The fund aims to buy other exchange-traded products that hold Bitcoin, rather than hold Bitcoin itself, and sell call options on those funds. Goldman Sachs described the product as an 'options overwrite strategy' that creates regular income from the sale of the call positions. The firm added that, in modest or falling Bitcoin markets, the ETF could outperform spot Bitcoin ETFs, but that its performance could lag those funds during times when Bitcoin experiences rapid price appreciation.”
Source: Fortune
Bitcoin Tests High End of Trading Range Amid Iran Optimism
Markets
“Bitcoin trended toward the high end of its more than two-month trading range as risk assets rallied on optimism that the US can strike a deal with Iran to end their conflict. The largest cryptocurrency by market value reached a four-week high, climbing as much as 4% to $76,094, the most since Feb. 4, before paring gains to trade around $74,000. Smaller tokens also advanced, with Ether up as much as 7.3% to over $2,400. Both crypto spot and derivatives markets have shown signs of modest recovery with trading volumes in spot climbing by 18% over the past week, according to data compiled by K33 Research. Premiums on Bitcoin futures trading on the CME approached the peak levels of the past three months.”
Source: Bloomberg
Visa, Stripe and Zodia Custody by Standard Chartered Become Validators on Tempo's Payments Blockchain
Adoption
“Institutional payments heavyweights Visa and Stripe, along with Zodia Custody by Standard Chartered, have signed on as early validators for Tempo as it begins to expand beyond its initial small circle of operators. Validators run the infrastructure that verifies, orders and finalizes transactions onchain — a role that lends itself to established, well-capitalized institutions capable of operating global, always-on systems. The new entrants fit the bill, collectively processing trillions of dollars of payments each year. 'Tempo is building payments infrastructure the way we think about it at Visa, purpose-built for moving value at scale,' said Cuy Sheffield, Visa's head of crypto.”
Source: The Block
How PayMe’s 3.3 Million Users And Hong Kong Firms Could Start Using Stablecoins
Stablecoins
“For Hong Kong’s 3.3 million PayMe users, everyday transactions such as buying coffee or splitting bills with friends could soon involve stablecoins, with HSBC preparing to introduce the digital currency in the second half of this year. That comes after HSBC Holdings, together with a Standard Chartered-led joint venture, became the first to obtain a stablecoin issuer licence from the Hong Kong Monetary Authority on Friday, marking a breakthrough in the city’s digital finance development. HSBC, the biggest lender in Europe and Hong Kong, is looking to introduce stablecoins to its more than 7 million customers in the city by integrating them into its popular PayMe app and its Hong Kong mobile banking apps.”
Source: South China Morning Post
