Guggenheim Treasury Securities (GTS) has entered the blockchain arena by issuing $20 million in Digital Commercial Paper (DCP) on Ethereum, receiving a strong P-1 credit rating from Moody’s. This move is facilitated through the AmpFi.Digital platform, developed by Zeconomy, which focuses on tokenisation services for qualified investors. Zeconomy’s CEO, Giacinto Cosenza, expressed excitement about addressing the need for secure blockchain solutions, especially as the market for tokenised US treasuries now exceeds $2 billion.
The increasing interest from traditional finance firms highlights a shift towards digital assets, with significant participation from players like BlackRock and Franklin Templeton. BlackRock’s tokenised fund BUIDL has a market cap of over $513 million, while Franklin Templeton’s FOBXX follows closely behind. Cosenza noted that recent developments, such as the approval of crypto exchange-traded funds in the US, underscore a growing institutional demand for crypto solutions.
Ethereum continues to play a key role, with nearly $1.6 billion of all tokenized US treasuries issued on its platform. Meanwhile, Solana is making strides in the space, holding 5.5% of the tokenised US government securities market. Firms like Franklin Templeton and Citigroup are now looking to Solana for future financial products, indicating the blockchain’s potential for growth and innovation in digital finance.
While Bitcoin offers an alternative way to purchase goods and services, most countries do not recognise it as legal tender. Only two countries, El Salvador and the Central African Republic, have officially adopted Bitcoin. El Salvador’s adoption, in particular, has seen economic improvements in areas like tourism and public investment, with the country’s Bitcoin treasury currently $58 million in profit.
Experts suggest that Bitcoin’s widespread use could reshape global economies, especially in regions like Africa and Latin America, where multiple currencies complicate trade. However, researchers caution that the financial system would need a major overhaul before Bitcoin could be used effectively as a mainstream currency.
Despite challenges such as volatility, some analysts believe Bitcoin’s mainstream adoption would bring benefits, including increased financial inclusion and reduced payment-processing costs. However, widespread acceptance is still dependent on Bitcoin first establishing itself as a store of value.
Worldpay, the global payment giant, is set to enter the blockchain space by verifying transactions, aiming to enhance its understanding of how funds flow through digital ledgers. According to a Bloomberg report from 26th September, the payment provider is in discussions with various blockchains to become a validator—an entity responsible for monitoring and confirming transactions on digital networks. Sanchit Mall, Worldpay’s web3 and crypto lead for the Asia-Pacific region, emphasised the company’s desire to be involved at the foundational level of blockchain ecosystems.
In 2024, Worldpay has already processed stablecoin transactions worth $1.3 billion, a notable increase from less than $1 billion in 2023. However, this still represents a small fraction of the total $2.3 trillion in annual transactions handled by Worldpay. As a validator, the company will need to stake a portion of the blockchain’s cryptocurrency, earning fees for its transaction verification efforts.
Worldpay’s move into blockchain validation marks a significant step, joining a competitive field that includes well-known validators like Coinbase and Galaxy Digital. Previously, the company has engaged in crypto-related initiatives, such as partnering with web3 payment provider Wert to improve access for cardholders and participating in trials for Fireblocks’ cryptocurrency custody solutions.
BNY Mellon, one of the largest US banks, is moving closer to offering custody services for Bitcoin and Ether exchange-traded fund (ETF) clients. This follows a decision by the US Securities and Exchange Commission (SEC) to ease requirements surrounding Staff Accounting Bulletin (SAB) 121, which had imposed strict guidelines for companies holding client Bitcoin.
SAB 121, introduced in 2022, required firms to list Bitcoin assets as liabilities, causing frustration in the industry. However, after reviewing the matter, the SEC’s Office of the Chief Accountant determined that BNY Mellon did not need to comply with SAB 121, allowing the bank to advance its crypto services.
Despite this progress, BNY Mellon still needs additional regulatory approval to offer these services at scale. The bank has stated that it continues to work with its banking regulators to fully roll out its custody offerings for crypto ETFs.
Julian Assange, the former Wikileaks editor-in-chief, has secured a plea deal, with his sentence commuted to time served. He is now set to travel to Saipan before returning to Australia. Despite his release, the financial burden remains, with his fiancée, Stella Assange, disclosing that the cost of his journey to freedom is estimated at $520,000. The family is urgently appealing for funds to cover travel and recovery expenses.
To help raise these funds, a BTCPay Server has been set up, enabling donations through Bitcoin or the Lightning Network. Assange’s brother, Gabriel, confirmed the platform, allowing secure, decentralised contributions. Julian’s connection to Bitcoin is long-standing, having been part of the cryptocurrency’s history, including discussions with its creator, Satoshi Nakamoto, regarding its use for Wikileaks when PayPal froze their accounts.
As Assange embarks on the next chapter of his life, the Bitcoin community continues to rally behind him, with a recent donation of 8 Bitcoins (around $500,000) further showcasing the role of cryptocurrency in supporting his cause.
PayPal is enhancing its cryptocurrency offerings to include business account holders, enabling them to use digital assets in everyday transactions. The new service, however, will not be available for businesses in New York at the launch. Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold cryptocurrencies like Bitcoin and Ethereum. Now, with the demand from merchants for similar access, PayPal is facilitating transfers of cryptocurrencies to external wallets, allowing businesses to send and receive digital tokens on blockchain networks.
This significant development means that US merchants can now handle digital currencies much like traditional money, with PayPal acting as a bridge between conventional finance and the expanding world of cryptocurrency. In August 2023, PayPal took a further step by launching its stablecoin, PayPal USD, which debuted on the Ethereum blockchain. Backed by US dollar deposits and short-term Treasuries, PayPal USD has already seen substantial usage, particularly after its expansion to the Solana blockchain.
Since May, the weekly transaction volume of PayPal USD has surged to over $500 million, compared to $150 million previously. Currently, the total supply of PayPal USD across Solana and Ethereum has reached $534 million, with a distribution of 74% on Ethereum and 25% on Solana. With these advancements, PayPal is poised to significantly influence how businesses integrate cryptocurrency into their operations.
Binance has unveiled a pre-market trading service, allowing users to trade new tokens before they officially list on the spot market. The pre-market option will include select tokens from Binance’s Launchpool, where participants can farm new coins by locking BNB and First Digital USD.
The new feature allows users to trade tokens early, meeting user demand and extending the lifecycle of token projects on Binance. Vishal Sacheendran, head of regional markets at Binance, emphasised that this launch aims to enhance the platform’s ecosystem by offering more utility to its global user base.
The service will come with standard spot trading fees and will conclude four hours before the tokens are officially listed. While available in most regions where Binance operates, some jurisdictions may face restrictions due to regulatory requirements.
TrueCoin and TrustToken have settled charges with the SEC over an unregistered offering of investment contracts between November 2020 and April 2023. The companies promoted their TrueUSD stablecoin and decentralized finance platform TrueFi as safe investments, which the SEC later deemed misleading.
The SEC complaint, filed on 24 September, stressed the importance of proper company registration for investor protection. Despite this, some within the crypto industry, including former SEC staff, have criticised the agency’s approach, calling its regulatory tactics unclear and excessive. This case adds to the ongoing tension between the SEC and the crypto sector.
Without admitting wrongdoing, both companies agreed to pay a combined fine of $163,766, with TrueCoin facing an additional $340,930 in penalties. The crypto industry has spent over $7 billion in SEC fines since 2013, with penalties rising sharply in recent years.
Vice President Cevdet Yilmaz has confirmed that Turkey will not impose a tax on crypto or stock trading profits this year. The government had considered introducing such a tax but is now focusing on reducing existing tax exemptions instead, giving investors a clearer picture of the country’s financial policies.
The idea of a tax on crypto and stock profits was initially postponed in June after a decline in Turkey’s stock market. The government’s new strategy aims to refine its current tax regulations, concentrating on narrowing tax exemptions rather than implementing new taxes.
The decision offers temporary relief to investors in Turkey’s financial markets, especially those using crypto and stocks to safeguard against inflation. While other nations, including the UK and Japan, evaluate how to tax digital assets, Turkey’s approach leaves room for potential policy shifts in the future.
In a remarkable turn of events for Bitcoin, approximately 20,000 new millionaires have emerged this year, bringing the total number of wallets holding at least $1 million to around 110,388. The increase reflects an 18% rise in wealthy Bitcoin holders, signalling a strong performance for the cryptocurrency. The surge in millionaires has been linked to significant price movements, particularly following speculation regarding Jeff Bezos’ rumoured $8 billion Bitcoin investment.
Bitcoin’s price has experienced substantial growth throughout 2024, starting at $42,300 and climbing to $63,591, representing over a 50% increase. Notably, the cryptocurrency reached a peak of $73,000 in mid-March, with a 7.8% rise in September alone. This impressive performance has been fuelled by robust market demand and key financial announcements, including anticipated interest rate cuts from the U.S. Federal Bank.
The positive trends extend beyond just millionaires. The number of Bitcoin wallets holding at least $100 has surged from 19.8 million to 21.6 million this year, while those with a minimum balance of $1,000 increased from 8.9 million to 10.37 million. Additionally, high-value accounts, including those with at least $10,000, rose significantly from 2.72 million to 3.43 million, showcasing broad participation in the Bitcoin market.
As the market continues to expand, Bitcoin’s appeal is evidently on the rise, with more investors benefiting from its increasing value. The growing number of wallets accumulating substantial amounts of Bitcoin underscores the cryptocurrency’s strengthening position within the global financial landscape.
