White Star Capital Digital Assets Fund - Newsletter #147
Central Banks unveil data project mapping crypto transfers
Central Banks unveil data project mapping crypto transfers
White Star Capital Digital Asset Fund - newsletter #147
The Bank for International Settlements, in collaboration with several European central banks, has developed a proof-of-concept (PoC) for a system that monitors both on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains.
The system, named Project Atlas, aims to evaluate the macroeconomic impacts of cryptocurrency markets and decentralized finance (DeFi) protocols. The front end of Project Atlas includes dashboards that display the results of aggregated data and show the total flow of cryptocurrency assets converted into US dollars. It offers insights into cross-border flows and provides a tool for central banks to assess the economic importance of the cryptocurrency ecosystem in various jurisdictions. The system tracks the flow of cryptocurrency assets between different locations by analyzing Bitcoin network transactions associated with crypto exchanges and their geographical locations.
Policymakers are using these dashboards to gain insights into the underlying data that contribute to aggregate indicators, enabling them to make well-informed decisions. The BIS Innovation Hub aims to provide insights, information, and economic implications of the crypto market, citing a lack of transparency and potential risks to financial stability.
The project will continue to add more data sources and extracting data from Ethereum network nodes and DeFi protocols is also in the pipeline. The output of project Atlas could be used as a starting point for initial assessments and to guide the creation of data reporting requirements and regulations for actors in the crypto market.
🔦 White Star & Portfolio Spotlight
Safello integrates Apple Pay and Google Pay for purchasing cryptocurrencies
Safello has introduced the option to buy cryptocurrencies easily through their app by accepting payments via Apple Pay and Google Pay. This new feature offers a secure, seamless, and highly convenient way for users to acquire their preferred cryptocurrencies, making it simpler to engage with the future of digital assets.
Ledn's Open Book Report: October 2023
In October 2023, Ledn, a digital asset lending company, released its "Open Book" report, highlighting their commitment to transparency in the industry. The report provides updates on various areas, such as collateral reporting, the introduction of new asset types, and insights into their risk management practices. These efforts are all aimed at promoting clarity and trust in Ledn's operations and services.
Atlendis launches Revolving Credit Line products with rollover functionality
Atlendis has announced the launch of their Revolving Credit Line (RCL) products, which include a Rollover functionality. This feature allows borrowers to start a new loan cycle immediately after repayment. The RCL loans provide enhanced flexibility, the opportunity to establish an on-chain credit history, and the ability for borrowers to maintain liquidity within the pool. Simultaneously, lenders benefit from continuous interest earnings and increased flexibility.
ALEX aims to decentralize blockchain oracle governance for security and transparency
ALEX aims to decentralize blockchain oracle governance for enhanced security and transparency, emphasizing community participation. Their proposal includes standardized rules, validator criteria, and performance monitoring, supported by partners like Domo, BIS, Hiro, OKX, and UniSat, to create an efficient on-chain indexing system for meta-protocols like BRC20.
Oamo has experienced high demand since its launch last week
Oamo's recent public launch has garnered an impressive response within a week. They have seen over 30,000 Oamo Profiles created, received 131,203 user credentials, had 15,666 pool participations, and received 12,305 offers, marking the start of a new data economy. They have even enhanced their Data Pools system to handle the high demand from users.
Eyeball Games shared insights on the Leaderboard in Phase 2
Eyeball Games has provided details about the Leaderboard in Phase 2. They have stated that earning consecutive wins will lead to higher point awards on the Leaderboard, as compared to single wins. Additionally, participants are encouraged to share their strategies or game plans for achieving success in this context.
🏦 Enterprises & Institutions
Tokenizing traditional financial assets: A priority for JPMorgan and its clients
Tyrone Lobban, the head of JP Morgan's blockchain division, revealed that nearly all client discussions, approximately "99.9%," focus on tokenizing traditional financial assets rather than cryptocurrencies. He highlighted the widespread interest among global banks, broker-dealers, and asset managers in incorporating traditional assets onto blockchain platforms, whether permissioned or public, and noted that while these are currently experimental, the intention is clear.
Bank of Korea to start CBDC infrastructure pilot
South Korea is launching a central bank digital currency (CBDC) pilot program in collaboration with private banks and public institutions, supported by the Bank for International Settlements (BIS). The project, announced by the Bank of Korea (BOK), the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS), will explore the technical infrastructure for CBDCs, covering both retail and wholesale CBDCs, with live testing for the retail version slated for Q4 2024.
Ripple gets formal approval for Singapore payments license
Ripple has secured a full digital payment token license from Singapore's Monetary Authority (MAS), enabling it to function as a significant payment institution in the country. This approval, following in-principle authorization received in June, solidifies Singapore's role as a crucial hub in Ripple's global business strategy, with over 90% of its operations taking place outside the United States.
Ledger and Sotheby's team up for digital art exclusives
Cryptocurrency wallet provider Ledger has partnered with art auction house Sotheby's to offer exclusive benefits to digital art collectors, including limited-edition Ledger hardware wallets for top buyers starting in 2024. The collaboration aims to introduce the next generation of art collectors to web3, ensuring the security and value of digital artwork.
Meta says its AI training used public social media posts—mostly
Meta Platforms has confirmed using public Facebook and Instagram posts to train its new virtual assistant, Meta AI, in an effort to enhance AI and machine learning system performance by analyzing user behaviors and preferences. While the company stated that the majority of the dataset was publicly accessible and that it excluded datasets containing substantial personal information, it did not clarify whether any remaining data required for the dataset was private or confidential.
⚖️ Government & Regulation
Argentine presidential candidate wants CBDCs to ‘solve’ hyperinflation
Argentine presidential candidate Sergio Massa vows to combat the country's hyperinflation crisis by introducing a central bank digital currency (CBDC) if elected. Massa's plan includes implementing a global CBDC for Argentina and enacting an amnesty law to encourage the repatriation of funds from abroad, all without imposing additional taxes. In contrast, pro-Bitcoin candidate Javier Milei, who leads in some polls, advocates abolishing Argentina's central bank and adopting the U.S. dollar to address inflation.
EU to assess export controls on AI tech and semiconductor chips
The European Commission is conducting risk assessments and exploring export controls on critical tech sectors, including AI and semiconductors, due to concerns about technology leaks and potential human rights violations. These assessments aim to safeguard strategic interests and security, with expected results and initiatives by spring 2024, followed by engagement with EU member states for collective evaluations.
Hong Kong crypto initiatives offer ray of hope in East Asia
Despite a decline in crypto activity in East Asia, particularly due to China's strict crypto bans, there's optimism emerging from Hong Kong. The region's recent crypto initiatives and favorable regulations are sparking interest, possibly indicating a shift or increased openness to cryptocurrencies within China. While trading volumes have decreased in both Hong Kong and China compared to previous years, Hong Kong's vibrant over-the-counter (OTC) market is identified as a significant driver of crypto activity, catering to institutional investors and high-net-worth individuals.
Cubans turn to Bitcoin amid currency devaluation and economic restrictions
Cubans are increasingly turning to Bitcoin as their local currency faces severe devaluation, with the cryptocurrency offering a lifeline in a country plagued by economic restrictions due to long-standing embargoes and government control. Despite difficulties accessing cryptocurrencies, Bitcoin represents a way for Cubans to preserve their purchasing power and gain financial autonomy.
CBDC lays foundation for new global monetary system: French central bank
Denis Beau, the first deputy governor at Banque de France, has emphasized the role of central bank digital currency (CBDC) in building a new international monetary system that enhances cross-border payments. Beau highlights the need to address cross-border issues related to CBDCs, and suggests exploring the development of common standards, interoperability, and regional/global CBDC platforms as potential pathways for CBDC evolution. Additionally, Beau suggests unlocking the full potential of blockchain through the tokenization of finance, with support from the public sector.
💰 Funding & Exits
Resy and Eater co-founder raises $24M for Blackbird, a restaurant loyalty platform
Blackbird Labs, a hospitality tech firm, has raised $24 million in a Series A round led by Andreessen Horowitz for its restaurant loyalty platform. The platform allows restaurants to personalize guest experiences, offer rewards, and gather data for targeted promotions, while diners can earn virtual currency for spending or membership rewards. Founder and CEO Ben Leventhal aims to help restaurants combat the challenges of rising operational costs and declining margins by creating regular customers through Blackbird's services.
Supra secures $24M for development of cross-chain oracle network
Supra has secured more than $24 million in private investments from well-known venture capital firms including Animoca and Coinbase Ventures. Currently, they are focused on developing a cross-chain oracle network using their unique consensus algorithm called "Moonshot Consensus." The main objectives of this network are to achieve sub-2 second finality and improve security. Furthermore, Supra intends to distribute their token supply widely among funds, node operators, and investors to promote decentralized governance and ownership.
IYK secures $16.8M funding to bridge digital and physical experiences for brands
IYK, a pioneer in connecting digital and in-person audience engagement, secured $16.8 million in funding led by a16z Crypto, along with support from various investors. They empower brands, including adidas, to enhance consumer experiences using NFC chips in physical products and introduce the user-friendly IYK Platform for creators to deploy customized digital-physical experiences easily.
Bril Finance raises $3M in Seed funding with FalconX
Bril Finance, a DeFi portfolio management startup, has raised $3 million in seed funding, with FalconX, Kosmos Ventures, and the Algorand Foundation as key backers. They have launched their flagship product on the Sei Network blockchain and aim to provide advanced portfolio strategies for both institutional and retail managers across multiple blockchain ecosystems, including Ethereum, Base, Avalanche, Polygon, and Arbitrum.
Convergence RFQ raises $2.5M in token round at $30M valuation
Solana-based Convergence RFQ, an on-chain crypto trading platform aiming to offer spot and derivatives trading using the request-for-quote (RFQ) method, has raised $2.5 million in a pre-seed funding round, valuing the platform at $30 million fully diluted. The funding, led by C² Ventures with participation from entities like Big Brain Holdings and the Israel Blockchain Association, will support the development of Convergence RFQ, which plans to launch early next month on Solana and later on the Ethereum Layer 2 network Arbitrum.
Restake Finance secures $500k in Seed round
Restake Finance has successfully completed a seed round, raising $500,000 with a valuation of $5 million. The funding has been secured from various groups and individuals, including Alfa Dao, DCDAO, Y&M, Moni, Bizyugo, 0xJeff, and others. The company's main objective is to lead in Rehypothecation Finance and explore innovative opportunities to maximize yield.
🚀 Project Launches & Updates
UBS launches pilot for an Ethereum-based Money Market Fund
UBS Asset Management, with $3.1 trillion AUM, has launched a live pilot of a tokenized Variable Capital Company (VCC) fund in Singapore. This initiative is part of Project Guardian, led by the Monetary Authority of Singapore (MAS), and aims to tokenize real-world assets, leveraging UBS's in-house tokenization platform, UBS Tokenize, on the Ethereum blockchain to monitor fund activities.
Chainlink moves a step closer to creating a decentralized computing marketplace
Chainlink introduces Chainlink Functions, enabling developers to use a single oracle network for data configuration and computation, streamlining network creation and development time. This aligns with Chainlink's goal to establish a decentralized computing marketplace, offering tools such as Chainlink Automation and data streaming for efficient, customized application development, reducing gas costs and enhancing flexibility.
Optimism network launches testnet fault-proof system in pursuit of decentralization
OP Labs, the developer of the Optimism network, has launched a testnet version of its fault-proof system, aiming to enhance decentralization and efficiency within the Superchain. The modular system allows different networks to customize their fraud prevention mechanisms, promoting diversity and security in the Optimism Superchain ecosystem.
Pro sports teams piling on to Chiliz fan token opportunities
The Socios app, powered by Chiliz's token, has seen significant growth, with user activities doubling in the last three months and a 50% increase in users redeeming rewards from 2022 to 2023, according to Chiliz's James Newman. Tottenham Hotspur recently announced plans to issue its Spurs Tank Token on Chiliz Chain via Socios, joining around 80 sports teams and organizations utilizing Chiliz Chain to offer fan tokens with various rewards and experiences, indicating a growing market capitalization in fan tokens.
🔥 Other Bits We're Excited About
Is Satoshi Nakamoto back? Twitter account revived after 5 years
The long-dormant Twitter account @satoshi, supposedly linked to Bitcoin's enigmatic creator, Satoshi Nakamoto, has sprung back to life after five years of inactivity. This resurgence has led to speculation within the crypto community, with some suggesting that the account may be associated with Craig Wright, a prominent figure who has claimed to be Nakamoto. The authenticity of the account's "verified" status has also come under scrutiny.
Ex-BlackRock Director says SEC will approve a Bitcoin ETF in '3 to 6 months'
Steven Schoenfield, former BlackRock executive and current CEO of MarketVector Indexes, anticipates SEC approval for a Bitcoin spot ETF within three to six months. This insight emerged during a panel discussion where it was suggested that the SEC may approve multiple ETF applications simultaneously, including the Grayscale Bitcoin Trust, potentially resulting in a substantial influx of $150 to $200 billion into Bitcoin investment products over three years.
DAOs can help scientists find funding and community, says Nature science journal
The Nature science journal has praised decentralized autonomous organizations (DAOs) as a promising solution for researchers in underfunded scientific fields to build communities and secure funding. With DAOs, research projects can be organized, funded, and managed by a decentralized governing body, offering a streamlined and democratized approach to scientific funding, particularly benefiting underfunded fields and regions.