The cryptocurrency industry can recall quite a momentous week with various happenings circling its boost. Right from the announcement of JP Morgan Chase forming its new blockchain division to Tesla’s BTC sale and the European Investment Bank rolling out a €100 million bond on ETH.
Cofinex's Weekly News Insights brings to you all the eventful happening, stories and insights to keep you posted about the latest of the blockchain and crypto world. Read on!
1. Fidelity Unveils Sherlock, An Institutional-focused Crypto Analytics Product
Fidelity Investments has announced a digital asset data and analytics tool this week labelled as SherlockSM. The product is purposefully directed toward institutional clients and provides on-chain data, ecosystem development updates and data from social media compiling all resources in a central location. This provides research material that is backed as holistic, timely and efficient given the current state of fast-paced markets.
What to note:
- Having commenced BTC custody services in 2019, Fidelity has long established itself on the institutional side of the blockchain and cryptocurrency market.
- The introduction of the product by Fidelity itself is an indication of an acceleration in cryptocurrencies and related institutional demand.
2. Eib Issues Its First Bond On Ethereum Worth €100 Million
As per an announcement made on Wednesday, the European Investment Bank has issued a €100 million bond, it’s first on the Ethereum blockchain that is all set to mature on April 28, 2023.
What to note:
- The EIB has remarked that declaring bonds on the Ethereum blockchain diminishes costs, is less opaque and extends a faster settlement.
- The remarkable issuance from the European Union’s lending arm unlocks possibilities of similar issuances on Ethereum or competing blockchains.
3. German Regulators Suspect Binance Trade Violation
The Federal Financial Supervisory Authority of Germany stated this Wednesday that it speculates cryptocurrency exchange Binance of violating the country’s protection laws by endeavouring into trading services for tokenized stocks.
What gave rise to this suspect was BaFin specifically noting that Binance Germany GmbH & Co. KG offers what it states to be securities in the form of ‘shares token’ with specific terms like TSLA / BUSD, COIN / BUSD and MSTR / BUSD without the aforementioned prospectuses on the website.”
What to note:
- Germany’s issue with Binance interestingly highlights the tiff between CeFi exchanges and DEX focused segments. Furthermore, Tokenized stocks are becoming popular in the cryptocurrency exchange space.
- The issue also threatens Finance with a potential 5 million euro fine. Alternatively, 3% of its total turnover from the last financial year, and/or up-to double the economic benefit derived from the violation of the laws.
4. JP Morgan Chase Initiates A New Blockchain Firm
In partnership with DBS and Singapore’s Temasek banking giants, JP Morgan Chase has created a new blockchain firm, Partior. The central aim of the company is to optimise cross-border payments by creating a “blockchain-based wholesale payments infrastructure where information and value can change hands around the world in a 24/7, seamless manner.”
What to note:
- Partior’s initial objective is to set up seamless payment infrastructures between Singapore banks in Singapore dollars and USD.
- While Partior is still underway its regulatory approval process, cross-border payment via blockchain technologies have long been its primary use case.
5.Tesla Sold $272 Million In BTC Post Obscure Criticism
According to the electric vehicle maker’s giant, Tesla’s Q1 2021 earnings report has witnessed the wipeout of $272 million worth of BTC holding as the company clears out its primary cryptocurrency from its balance sheet.
What to note:
- The sale was given the criticism of Tesla’s $1.5 billion in BTC holdings since its long term HODL after the company’s February purchase. Many BTC maximalists have taken the news bitterly.
- Tesla has devised an innovative way of reinstating its belief in the long term value of Bitcoin by opening gateways to accept payments in cryptocurrency.
