A narrative that has been at the top of market’s agenda is the unprecedented levels of volatility that market participants could be subjected to in the coming weeks ahead of the eagerly awaited elections in the US. However, as per CoinDesk’s article this weekend, bitcoin’s 180-day volatility dropped to its lowest mark since November 2018, reaching a 23-month low of 0.028 on Sunday, as the market was mostly unfazed by a week of unsettling news.
Here’s our weekly roundup of the latest industry news and big reads.
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Arthur Hayes, CEO of HDR and BitMEX, at CoinDesk Consensus 2018. Source: CoinDesk
Bitmex vs United States
The U.S. Commodity Futures Trading Commission (CFTC) and federal prosecutors have started the quarter off with a bang, charging crypto trading platform BitMEX with facilitating unregistered trading and other violations, and arresting co-founder Samuel Reed.
Messari’s Conor Dempsey provides a useful overview of how events unfolded last week.
Monthly decentralised exchange volume. Source: Dune Analytics
DeFi Craze Propels Uniswap Monthly Volume to $15.3B, Surpassing Coinbase
The explosive growth of the DeFi market has pushed many avid investors to DEXes over centralised exchanges. Data from Dune Analytics shows that Uniswap, the DEX built on Ethereum, processed $15+ billion in volume during September.
In the same period, reports indicate that Coinbase processed $13.6 billion. The significant spike in Uniswap’s volume is attributable to two major factors: the explosive growth of decentralised finance and yield farming of governance tokens causing decentralised exchanges to thrive, and the launch of Uniswap’s governance token UNI which led to a frenzy on the platform.
ECB Takes Major Step toward Introducing a Digital Euro
The European Central Bank will start experimenting with a digital version of the euro while holding a public consultation in a major step toward introducing the technology. “Our role is to secure trust in money,”President Christine Lagarde said as the ECB published a study into the benefits and drawbacks of a digital currency. “This means making sure the euro is fit for the digital age. We should be prepared to issue a digital euro, should the need arise.” The consultation will start on 12th October and the experiment will be held in parallel. The ECB said it will decide toward mid-2021 whether to launch a digital euro project, which would start with an “investigation” phase.
Crypto Market Structure Overview
Arjun Balaji, Investment Partner at Paradigm, has written an excellent overview of crypto asset market progress over the past two years, with a look at what needs to happen next: principally, citing major improvements in capital efficiency (which is gearing up with the emergence of institutional-grade prime brokerage and crypto-native repo, among other features), and the convergence of decentralised and centralised financial functions.
All Stocks could become Tokenized, says SEC Chairman Clayton
Jay Clayton, Chairman of the U.S. Securities and Exchange Commission, appears to believe in blockchain technology’s power and thinks that all stocks could become tokenised one day.
In a webinar, hosted by the Chamber of Digital Commerce last Friday, Clayton said all stock trading is today electronic, compared to 20 years ago. In the past, there were stock certificates, and today there are digital entries representing stocks. “It may be very well the case that those all become tokenised,” said Clayton.
The webinar “Two Sides of the American Coin: Innovation & Regulation of Digital Assets,” focused on what is needed to grow the crypto space. Brian Brooks, the Acting Comptroller of the Currency at the Office of the Comptroller of the Currency (OCC), also participated.
Both Clayton and Brooks said they welcome innovation in the crypto space, but of course, within regulatory frameworks.
Diginex Stock Goes Live on Nasdaq Following $50M in SPAC and Private Funding
Blockchain services firm Diginex has become the first crypto exchange operator to list on Nasdaq. The stock went live last Thursday morning under the EQOS ticker symbol, a nod to the firm’s EQUOS.io trading platform.
Diginex CEO Richard Byworth said he expects a mix of global retail and institutional investors to buy shares. Over time, he expects the majority of Diginex shareholders to be U.S. investors because of the Nasdaq listing, commenting: “This is a watershed moment for both Diginex and the cryptocurrency industry with the listing of the first-ever company with a crypto exchange on Nasdaq. This also presents the first opportunity for anyone trading in the US capital markets to buy directly into the equity of a digital asset ecosystem and opens the door for financial institutions to participate in the enormous opportunity that digital assets present.”
How the EU is Revolutionising Stablecoin (and Crypto) Oversight
Peter Kerstens, the European Commission’s lead on digital finance policy and regulation, explains why – and how – the bloc’s new crypto proposals are poised to create the largest regulated market for digital assets in the world.
Live Webinar: The Struggle to Bank Crypto Enterprises
We joined the Crypto Curry Club live webinar recently, to unpack the difficulties of getting banking within the crypto space. Our partner, Ben Sebley, sat down with Coinfirm’s Ryan Hadley to answer questions from a live audience. Crypto Curry Live is a new series of discussions with industry leaders in the digital assets and blockchain space. Watch here.