Goldman rebrands to Cryptoman
Good morning. Today an update on the move to back UST with bitcoin reserves, further FTX expansion, Goldman marking a crypto milestone, and more!
Market Update (as of 8:00am ET):
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Top 5:
1. The $10 billion bitcoin bet on stablecoins. Pomp goes into detail on Terra's move back their UST stablecoin coin with bitcoin and the ramifications of this decision:
1) Terra is becoming a persistent buyer of bitcoin. The foundation backing Terra will slowly purchase $3 billion of bitcoin to serve as stablecoin reserves. The foundation plans to buy on "aggressive price dips"
2) Terra's decision highlights bitcoin as "pristine collateral" and serves as a strong example of a bitcoin backed asset being used on a daily basis in financial markets.
3) Bitcoin essentially has Terra operating as a layer-2 network with Terra being one of the largest smart contract platforms in the world
2. The institutions are (finally) coming. In 2018, many thought institutions would help crypto markets rally after the crash, but that certainly didn't happen. So, what makes everyone so sure the big money will buoy markets in the year to come? Part of this institutional assumption is logical - we've had almost five years of crypto being part of mainstream financial news and it would be naïve of investors to ignore crypto outright. Some reports estimate that 80% of all institutional investors are now allowed to allocate to crypto and a recent survey from Fidelity Digital Assets showed that 70% of institutional investors expected to buy or invest in digital assets "in the near future".
3. FTX’s European head plots ‘cautious’ expansion into UK market. The unending FTX expansion continues, with the crypto exchange now setting its eyes on the lucrative UK market. The country's main financial markets regulator, the Financial Conduct Authority (FCA), has been very "suspicious" regarding crypto and only a handful of companies have been approved to provide spot trading. FTX is hoping that their reputation of being regulator friendly will prove valuable in the effort to expand their business.
4. Goldman Sachs, Galaxy Digital announce milestone over-the-counter crypto trade. CNBC reported Monday that Goldman Sachs became the first major US bank to trade crypto over the counter. The firm traded a non-deliverable option linked to bitcoin with Galaxy Digital, a crypto merchant bank. “This trade represents the first step that banks have taken to offer direct, customizable exposures to the crypto market on behalf of their clients,” said Galaxy co-President Damien Vanderwilt.
5. Euroclear invests in Fnality, blockchain-based synthetic CBDC. European clearing house firm, Euroclear, announced their investment in the regulated blockchain payments consortium, Fnality. Fnality will launch a "wholesale synthetic CBDC" in October of this year backed by British pounds deposited with the Bank of England. The token will facilitate institutional settlement of blockchain transactions. The consortium is made up of other big names in finance including: Nasdaq, BNY Mellon, State Street, and UBS.
Updates and other stories:
- Crypto exchange Blockchain.com acquires Altonomy’s OTC desk...Read More
- NYDIG, BlockFi, Pantera, Circle, ‘targeted’ in HubSpot data breach...Read More
- Malaysia should make Bitcoin, crypto legal tender, Deputy Minster...Read More
Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN
External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings
Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.