Alpaca Finance Institutional Newsletter #60
Highlights
- Progress for BlackRock’s Bitcoin ETF with DTCC listing
- Chinese digital Yuan takes first step in oil trade, signals shift off petrodollar
- Federal Reserve continues CBDC research as Bank of England’s Deputy Governor bids farewell
BlackRock’s iShares spot Bitcoin ETF has been listed on the DTCC, indicating preparation for SEC approval. Bloomberg’s Eric Balchunas sees this as a positive step in the ETF’s launch process. BlackRock is leading the way in logistics for ETF approval, suggesting they might already have the SEC’s nod or are preparing for it. The SEC has until January 10, 2024, to decide on the ETF’s approval.
The Chinese digital yuan (e-CNY) was used for the first time in settling an oil transaction on the Shanghai Petroleum and Natural Gas Exchange. PetroChina International purchased 1 million barrels of crude on October 19 in response to a call from the Shanghai Municipal Committee and Government to use e-CNY in international trade. This marks a significant step for the digital yuan and China’s move away from the U.S. dollar. In the first three quarters of 2023, the use of the yuan in cross-border settlements rose by 35%, reaching $1.39 trillion.
Sir Jon Cunliffe, in his final speech as deputy governor of the Bank of England, discussed past and future payment solutions. Meanwhile, the Federal Reserve Board, represented by Vice Chair Michael Barr, continues its research into central bank digital currencies (CBDCs) and related technologies. The Fed’s current focus is on end-to-end system architecture for CBDCs. Barr emphasized that a digital dollar requires a congressional mandate and the importance of learning from international experimentation to support responsible innovation. This approach aligns with the Fed’s stance on CBDC research, despite recent calls to end it in Congress.
News
- BlackRock’s spot Bitcoin ETF now listed on Nasdaq trade clearing firm
- Chinese digital yuan CBDC used for first time to settle cross-border oil deal
- Mastercard partners with crypto payment firm MoonPay for Web3 services
- Fed, BOE officials share continuing interest in CBDCs, stablecoin regulation
Products
- Bitget releases MPC wallet, includes 2/3 private key sharding
- Ledger hardware wallet rolls out cloud-based private key recovery tool
- dYdX launches layer-1 blockchain, validators and stakers set to receive all fees
- Circle launches ‘points-to-crypto’ program with Taiwan convenience store chain
Regulation
- US lawmakers discuss digital assets, and the House gets a new speaker
- US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
- UK passes bill to enable authorities to seize Bitcoin used for crime
- Ryder Ripps ordered to pay Yuga Labs $1.6M in copyright lawsuit
Funding
- MetaMask security partner Blockaid secures $33M funding
- Privacy firm Nym launches $300M fund, eyes Web3 wallets, RPCs and infrastructure services
- Neon Machine raises $20M Series A for blockchain-based Call of Duty competitor ‘Shrapnel’
- Solana Labs launches Web3 incubator offering dev and fundraising support
