Coinbase has reintroduced crypto-backed loans, allowing US customers to borrow against their Bitcoin. The service, currently unavailable in New York, uses the decentralised finance (DeFi) protocol Morpho to handle lending operations. Customers can borrow USDC while Coinbase facilitates the process, removing the need to interact directly with complex DeFi systems.
The new programme marks a significant step in bridging traditional crypto exchanges with the DeFi world. By integrating a sleek, consumer-friendly interface, Coinbase makes over-collateralised loans more accessible, concealing the intricate mechanics of DeFi from users. The loans use cbBTC, a DeFi-compatible version of Bitcoin issued by Coinbase, as collateral.
The move follows the discontinuation of Coinbase’s previous loan offering in 2023 after regulatory challenges and waning demand. With this streamlined approach, Coinbase hopes to attract more users to DeFi lending, tapping into the billions of dollars worth of Bitcoin held by its customers.
Layer-1 stablecoin payments network 1Money has secured over $20 million in seed funding to advance its digital payments platform. The funding round saw participation from major investors, including Galaxy Ventures, Kraken Ventures, and Tribe Capital, highlighting growing confidence in stablecoins as a transformative financial tool.
Led by former Binance.US CEO Brian Shroder, 1Money aims to modernise global payments with its patent-pending Byzantine consistent broadcast design. The network promises instant transactions, fixed costs, and support for multiple stablecoins, removing the need for users to manage gas tokens and simplifying the payment process.
Stablecoins are gaining momentum as a cornerstone of the blockchain industry, with the market currently valued at $214 billion. Industry experts predict this figure could surpass $300 billion as adoption rises. Companies like Visa and fintech platforms are eyeing stablecoins to revolutionise payment systems, further cementing their role in the future of finance.
As a potential US ban on TikTok looms, advertisers dependent on the platform are scrambling to prepare contingency plans. With a January 19 deadline for ByteDance, the Chinese parent company of TikTok, to sell its US assets or face a ban, many marketers are facing the reality that the app may soon be inaccessible. This has led to a sense of urgency, with some industry professionals describing the situation as a “hair on fire” moment.
TikTok, which has become a key player in US digital advertising, particularly among younger audiences, may lose over $11 billion in annual ad revenue if the ban goes through. Most of this ad spend would likely shift to platforms like Meta’s Instagram and Alphabet’s YouTube Shorts, where many advertisers are already established. Despite the uncertainty, TikTok continued to pitch new advertising features and planned its presence at major global events like the World Economic Forum in Davos.
In the face of potential shutdown, many influencers and brands are downloading their data in a last-ditch effort to preserve content and advertising materials. TikTok has offered favourable refund terms to advertisers, though some still question the platform’s future in the US. This heightened uncertainty marks a stark contrast to the optimism advertisers held just weeks ago, when many expected a resolution before the ban could take effect.
TikTok’s growing influence in US advertising, particularly in e-commerce, has been notable, with ad spending on the platform increasing rapidly. Despite challenges, the app’s powerful ability to drive sales through influencers and short-form video content has made it a favourite among advertisers looking to tap into the youth market. As the deadline approaches, all eyes are on whether the incoming administration will intervene to prevent TikTok’s shutdown.
A recent survey by CryptoQuant reveals that a significant portion of the cryptocurrency market is made up of younger, well-educated investors, with over 60% of participants aged between 25 and 44. The survey also highlighted that nearly half of crypto investors hold at least a bachelor’s degree, and most invest less than $10,000 annually, showing that retail investors are the dominant force in the market.
Binance emerged as the preferred exchange for 53% of respondents, with the platform also being the most profitable for many, with 51% of users reporting their largest gains through it. Other platforms like Bybit and OKX were popular among full-time traders, while Coinbase and Kraken were favoured by part-time investors. Regionally, Binance leads in Asia, Africa, and South America, while Coinbase remains the top choice in North America.
Bitcoin continues to be the most sought-after cryptocurrency, followed by Ethereum and other assets like Solana and XRP. The survey underscores the growing confidence in blue-chip cryptocurrencies, with investors focusing on established projects to limit risk.
TikTok’s future in the US grew more uncertain this week as officials suggested its Chinese owner, ByteDance, should have more time to sell the app and prevent a ban. With the clock ticking toward Sunday’s deadline, key figures from both political sides urged for a 90-day extension to allow for a divestiture. US Representative Mike Waltz, who was appointed as Trump’s national security adviser, indicated that the new administration would take steps to keep TikTok operational if substantial progress is made in securing a deal.
Senate Majority Leader Chuck Schumer, traditionally a supporter of the law forcing TikTok to sell its US assets, also called for an extension, citing concerns over the app’s potential shutdown disrupting the lives of millions of users. The law, passed in April, mandates ByteDance either sell TikTok’s US assets by Sunday or face a ban on national security grounds. However, it’s now unclear whether the app will be allowed to stay active in the US without an official extension.
TikTok CEO Shou Zi Chew is reportedly set to attend President-elect Donald Trump’s inauguration, further hinting at a shift in relations between the app and the Trump administration. While concerns about Chinese ownership and its potential for data collection remain, Schumer and other lawmakers are signalling a growing bipartisan desire to avoid the political and economic fallout of a TikTok ban. The situation remains fluid, with decisions expected to unfold in the coming days.
As the deadline approaches, TikTok’s potential shutdown has already caused some users to explore alternatives, with RedNote, another Chinese social media platform, seeing a surge in US users. Meanwhile, with more than 170 million American users and substantial ad revenue at stake, the clock is ticking for a resolution before the app faces a permanent ban.
Indian telecom giant Jio Platforms, owned by billionaire Mukesh Ambani, has launched its reward-based token, JioCoin, on the Polygon network. The token was integrated into Jio’s proprietary JioSphere browser, which allows users to earn JioCoins while browsing. However, Jio has not made an official announcement regarding the token’s full utility or potential use cases.
While JioCoin is currently not transferable or redeemable, industry experts speculate it may eventually serve as a currency within Jio’s vast network of companies. Users could potentially redeem the token for services such as mobile recharges or purchases at Reliance gas stations. Despite the potential, the community has raised questions about the token’s transparency, including concerns about its block explorer, smart contracts, and listing on price trackers.
Critics have compared JioCoin to the Brave browser’s Basic Attention Token (BAT), while some view it as a marketing gimmick. Meanwhile, supporters highlight the token’s integration with blockchain and Web3 technology, noting it could bring practical utility to users in the future. The launch comes amid a strict regulatory environment for cryptocurrencies in India, with a flat 30% tax on crypto gains and no loss offsets.
Beijing-based AI company Zhipu Huazhang Technology has opposed the US government’s plan to add it to the export control entity list. The company argues the decision lacks a factual basis.
Zhipu issued a statement on its official WeChat account expressing strong opposition to the move. The firm criticised the US commerce department’s intentions, insisting the decision was unjustified.
Zhipu and its subsidiaries face restrictions on accessing US technologies if added to the list. The company maintains it operates lawfully and transparently in its business practices.
The US has been increasing scrutiny on Chinese technology firms, citing national security concerns. Zhipu emphasised its commitment to responsible technology development and cooperation with global partners.
US authorities, including the Commerce Department and the FBI, are investigating Baicells Technologies, a telecom hardware company with ties to China, over potential security risks. Founded by former Huawei executives, Baicells has supplied telecom equipment to 700 networks across the US since opening its North American branch in 2015. The investigations focus on national security concerns, particularly around the company’s Chinese origins and its equipment’s potential vulnerability to espionage. The FBI’s interest in Baicells goes back to 2019, and recent reports suggest that the Pentagon has added the company to a list of entities connected to China’s military.
While Baicells has denied any wrongdoing and pledged full cooperation with US authorities, the company faces mounting scrutiny amid fears that Chinese-made telecom equipment could be used for surveillance or cyber attacks. In particular, base stations and routers provided by Baicells have been flagged for vulnerabilities that could allow hackers to compromise sensitive networks. The FBI has already contacted local US entities, such as the city of Las Vegas, to raise security concerns regarding Baicells’ technology.
Despite Baicells’ claims that it no longer has ties to its Chinese parent company, its history and ownership structure continue to raise doubts. Many of its top executives and a significant portion of its staff have links to Huawei, further fueling suspicions about the company’s operations. In recent years, Baicells has attempted to distance itself from its Chinese roots, stating that its infrastructure is increasingly built in Taiwan, though much of its equipment still originates from China. The ongoing investigations highlight the broader concerns in Washington about the risks posed by Chinese-linked technology in critical infrastructure.
Australia’s Macquarie has agreed to acquire a 15% stake in Applied Digital’s high-performance computing business and invest up to $5 billion in its AI data centres. The investment comes as AI-driven demand for computing infrastructure continues to surge, with companies racing to develop and train advanced models. Shares of Applied Digital surged by around 20% following the announcement.
Macquarie’s asset management division will initially invest $900 million in a data centre campus in North Dakota, with the potential for an additional $4.1 billion over the next 30 months. Applied Digital plans to use the funding to repay debt and recover over $300 million of its previous equity investment. The company’s CEO, Wes Cummins, stated that the deal provides the necessary capital to build and operate data centres with high power demands.
Applied Digital’s stock has more than tripled over the past two years, reflecting growing investor confidence in AI infrastructure. The deal follows Microsoft‘s announcement of an $80 billion investment in AI data centres for fiscal 2025. Applied Digital is set to release its second-quarter financial results after the market closes on Tuesday.
Block Inc has agreed to pay $80 million to 48 US state financial regulators over inadequate money laundering controls on its Cash App platform. The settlement follows findings that the company’s compliance measures were insufficient for policing money laundering risks effectively.
An independent consultant will review Block’s Bank Secrecy Act and anti-money laundering programme and report any deficiencies to regulators. The company has also committed to making internal corrections to strengthen its compliance framework.
A Block spokesperson stated the concerns primarily related to past compliance measures and highlighted significant investments made since then to improve risk management. Cash App, which had 56 million monthly users in December 2023, processed over $248 billion in inflows last year.
