The latest moves in crypto markets, in context By Jamie Crawley, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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It's Wednesday! Here's what you need to know today in crypto: |
- Binance has released a self-custody Web3 wallet.
- HSBC plans to start a custody service for tokenized securities.
- Grayscale's LINK product trades at 200% premium.
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CoinDesk Market Index (CMI): 1,389 +1.7%
Bitcoin (BTC): $35,339 +1.9%
Ether (ETC): $1,883 +0.3%
S&P 500: 4,378.38 +0.3%
Gold: $1,971 +0.2%
Nikkei 225: $1,971 +0.2% |
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Binance has released a self-custody Web3 wallet that can be used to interact with the DeFi ecosystem. Users are required to use the Binance app to create a wallet, with the app serving as the venue for activities such as staking, lending and borrowing. The wallet will also use multiparty computation (MPC), which involves a private key being broken into three parts of which the wallet owner controls two, as a means of removing the need to memorize seed phrases. The new wallet appears to compete with TrustWallet, which the exchange bought in 2018. TrustWallet's native token (TWT) fell following Binance's announcement. TWT had experienced a positive week prior to this, thanks in part to Binance listing TWT futures on its exchange, which saw volume increase from around $80 million to $476 million on Monday. |
HSBC said it plans to start a custody service of tokenized securities for institutional clients alongside Swiss crypto custodian Metaco. The service is set to go live in 2024 and will complement HSBC's existing platform for digital asset issuance and its recent tokenized physical gold offering, the bank said. HSBC pointed out that the service will not pertain to cryptocurrencies or stablecoins. Tokenization, the process of issuing and trading real-world assets on blockchains, is one of the most prominent ways in which major financial institutions are becoming involved in the digital asset industry. Boston Consulting Group estimated last year that tokenization could become a $16 trillion industry by 2030. Grayscale's investment product linked to Chainlink's LINK token is trading at a 200% premium to spot prices, which suggests institutional demand. The Grayscale Chainlink Trust (GLNK) closed at $39 on Monday compared with $21 on Oct. 31. Each GLNK share holds just $12 worth of LINK, making it nearly three times pricier than the actual value of held assets. The product has historically traded at a premium of over 20%. While premiums have reached as much as 150% on two separate occasions since the product's launch in May last year, Monday's is its highest ever. LINK tokens themselves have surged over 76% in the last month. |
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Market Insight: Investment Advisor Two Prime Sees $2B in Demand for Bitcoin-Backed Loans |
Investment adviser Two Prime says it has seen $2 billion worth of demand for bitcoin-backed loans since it started offering them in September, in what could be a sign of bullish sentiment embedding itself in the crypto market. Cryptocurrency lenders BlockFi, Celsius and Voyager all saw tremendous growth during the bull run of 2020-21 before the market headed south. All three filed for bankruptcy last year. At its peak, Celsius had over $20 billion worth of assets under management and more than 1.7 million users. Crypto-collateralized lending involves a borrower pledging their digital assets as security to secure a loan, usually in the form of fiat currencies. The value of the collateral is typically far greater than the loan's value as a buffer for the lender in case of a decline in value of the crypto asset, as occurred in 2022. "After the fall of Genesis, BlockFi, Celsius, and others, a major gap in the market emerged for responsibly managed secured loans for institutions. Two Prime is well-positioned to fill it," Blume said, adding that the firm is focused on institutional borrowers. |
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- The chart shows the spread between Deribit's ETH DVOL and BTC DVOL indices. DVOL represents options-implied expectations for price turbulence over 30 days.
- The spread has narrowed to -0.6 from -11.6 on Oct. 23, a sign investor focus has shifted from market leader bitcoin to ether and other alternative cryptocurrencies.
- Source: Amberdata
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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