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Coinbase Partners with BlackRock to Offer Cryptocurrencies to Institutions

Coinbase, one of the world’s largest and most popular digital currency exchanges, is partnering with investment giant BlackRock to offer its clients the opportunity to trade digital assets.

Coinbase and BlackRock team up

Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, explained in a recent interview:

Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets. This connectivity will allow clients to manage their bitcoin exposures directly within their existing portfolio management and trading workflows for a portfolio-wide view of risk across all asset classes.

It’s interesting to see BlackRock make this change. Larry Fink, the company’s president, said about five years ago that bitcoin was the “money laundering index.” He didn’t trust cryptocurrencies, nor did he have any desire, it seems, to get involved with them.

However, it looks like things have changed not exactly for Fink, but also for the company’s clientele. They are starting to realize the true prowess of digital assets and want to get involved. They are eager to take advantage of digital currency offerings and expand their portfolios beyond the standard investment tools they have been exposed to.

For this reason, it appears that BlackRock feels they have no choice but to continue offering digital currencies to customers, regardless of how Fink feels. Executives know there is business to be lost if they don’t change with the times, and offering cryptocurrencies is likely to please everyone sitting at the BlackRock table.

Owen Lau, analyst at Oppenheimer & Co., gave his thoughts on the new partnership, commenting:

After this validation, Coinbase will be able to partner with more traditional financial industries. This shows that even with BlackRock’s size, they will be partnering with a native cryptocurrency company rather than developing their own features.

The move comes at a pretty interesting time, given how poorly the crypto space has been doing lately. Bitcoin, for example, is down over 60% from its all-time high of over $68,000 per unit last November. At the moment, the asset is struggling to maintain a position in the $20K range, with the entire crypto space losing around $2 trillion in overall valuation.

A lot of controversy surrounding the exchange

The fact that the space is in such a weak state and yet so many institutions still want to take advantage of it is proof that digital currencies are becoming much more mainstream and legitimate in people’s eyes, even as prices fall.

Coinbase has been at the center of a lot of controversy lately. The company is under SEC investigation and a former employee has been accused of insider trading.

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South Korea’s second largest city, Busan, partners with FTX for a local exchange

The city of Busan, the second largest city in South Korea, commonly known as the ‘Blockchain’ city of South Korea, has partnered with major cryptocurrency exchange FTX to build a local exchange. Furthermore, the association also aims to promote the development of blockchain in the city.

Pursuant to the agreement according to a statement issued by the Busan Metropolitan City on Aug. 30, FTX will assist in the creation of a local cryptocurrency exchange duped by the Busan Digital Asset Exchange. The Bahamian cryptocurrency exchange led by Sam Bankman-Fried will also support the city of Busan in promoting the growth of the local blockchain industry.

Busan City Cryptocurrency Exchange

The city of Busan will leverage FTX’s technology and infrastructure to build its own cryptocurrency exchange and promote blockchain-specific education at local universities and projects within the city’s ‘Special Blockchain Free Zone’ established in 2019.

FTX, through its Investment Division CEO Amy Woo, said that it will establish a Korean branch of FTX in the city of Busan within the next 12 months to help make Busan a digital financial hub in Asia.

In addition to signing an agreement with FTX, Busan also partnered with Binance, the largest cryptocurrency exchange by turnover, on August 1. Binance has signed a memorandum of understanding to provide the city with infrastructure and technology support for its blockchain development effort.

Both FTX and Binance are expected to establish a presence in South Korea in the next 12 months.

Since Busan was designated as the Blockchain City of South Korea in 2019, several projects have already been launched. These projects include a proprietary blockchain-based identification system, a blockchain-powered driver’s license platform, and cryptocurrency support for various services.

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Goldman Sachs urges investors to buy commodities now; expect stocks to suffer as inflation remains high

Global investment bank Goldman Sachs has urged investors to buy commodities now and worry about a recession later. The company’s analysts see commodities as “the best asset class to own later in the cycle, where demand remains above supply.” Meanwhile, “stocks may take a hit as inflation remains high and the Fed is more likely to surprise on the aggressive side,” Goldman noted.

Goldman Sachs Recommendation: Buy Commodities Now

Global investment bank Goldman Sachs has recommended that investors buy commodities. In a note titled “Buy Commodities Now, Worry About Recession Later,” published on Monday, Goldman wrote: “Our economists view the risk of a recession outside of Europe in the next 12 months as relatively low.” Company analysts including Sabine Schels, Jeffrey Currie and Damien Courvalin explained:

With oil a commodity of last resort in an era of severe energy shortages, we believe the downturn in the entire oil complex offers an attractive entry point for long-term investment.

In the US, Federal Reserve Chairman Jerome Powell said last week: “We are taking strong and swift action to moderate demand to better align with supply and keep inflation expectations anchored. We will continue this way until we are sure the job is done.”

Furthermore, European Central Bank (ECB) board member Isabel Schnabel noted on Saturday that central banks around the world are at risk of losing public confidence and must now act forcefully to combat inflation, including if you drag your savings into a recession.

“From a cross-asset perspective, equities may suffer as inflation remains elevated and the Fed is more likely to surprise on the aggressive side,” Goldman analysts further noted, explaining:

Commodities, on the other hand, are the best asset class to own later in the cycle, where demand remains above supply.

The final phase of the cycle normally implies an increase in inflationary pressures and an economy that exceeds the maximum rate of economic growth.

Goldman Sachs also warned: “We recognize that the macroeconomic environment remains challenging and the US dollar could rise further in the near term.”

Currie, who heads commodity research at Goldman Sachs, believes recessions are a natural part of a prolonged commodity supercycle. He told Reuters in November last year: “We expect a structural bull market in commodities, very similar to what we saw in the 2000s or 1970s.”

The analyst told CNBC in June that we are at the start of a commodity supercycle. “This is the first round of a commodity super cycle, it’s not just oil and gas, it’s metals, it’s mining, it’s agriculture, because the sector has suffered from over a decade of underinvestment,” he said.

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Ukraine Blocks Cryptocurrency Wallet Used to Raise Funds for Russian Forces

Ukraine’s law enforcement and counterintelligence agency managed to seize funds in a cryptocurrency wallet used to finance the Russian military campaign in the country. Kyiv officials say the money raised through the wallet was spent on military equipment for pro-Russian separatist forces in the east.

Ukraine Seizes Cryptocurrency Donations Funding Russian Invasion

The Security Service of Ukraine (SBU) has for the first time implemented a mechanism to curb fundraising through cryptocurrencies for troops fighting on the Russian side in the ongoing hostilities in the country. The conflict turned into a full-scale war when the Russian army crossed the border into Ukraine in late February in what Moscow calls a “special military operation” in support of the pro-Russian breakaway regions of Luhansk and Donetsk.

In a press release on Tuesday, the SBU announced that a cryptocurrency wallet operated by a citizen of the Russian Federation and used to sponsor Russia’s military effort in Ukraine was blocked. The man, who volunteered, has been raising money for the needs of the Russian forces since the invasion began.

The wallet had accumulated digital coins worth 800,000 hryvnia (nearly $22,000 at current exchange rates) by the time it was blocked, the SBU said, adding that the funds had already been seized. Experts are now working to trace related transactions and transfer custody to Ukraine. The agency did not specify how it seized the wallet, but did reveal that it enlisted the help of foreign cryptocurrency companies.

Ukrainian investigators were able to establish that the owner of the wallet dedicated a significant part of the donated cryptocurrency to the purchase of military supplies for separatist fighters of the self-proclaimed Luhansk and Donetsk People’s Republics. Representatives of the National Police of Ukraine and the Public Ministry also participated in the operation.

Russian “volunteer” active on social media

The Russian activist has been actively seeking financial assistance on social media platforms since the beginning of the latest phase of the conflict. To promote his efforts, he regularly creates and publishes photo and video content, distributes publications published by partners and reports on the use of the funds raised, the SBU detailed without revealing the identity of the Russian.

A report by blockchain forensics firm Chainalysis last month revealed that 54 pro-Russian groups have collectively received more than $2.2 million in cryptocurrency. These organizations, which operate in Donetsk and Luhansk, received most of the donated amounts in bitcoin (BTC) and ether (ETH), but also in other cryptocurrencies.

Ukraine itself has relied on cryptocurrency donations, with the Kyiv government and volunteer groups raising digital money to fund defense efforts. Ukraine’s Minister of Digital Transformation Mykhailo Fedorov recently announced on Twitter that $54 million in cryptocurrency funds raised through the Aid for Ukraine initiative were spent to purchase armor, medicine, night visions, and even vehicles for the Ukrainian military.

The Ukrainian people have also received purely humanitarian aid from the crypto community and industry. European cryptocurrency exchange Whitebit, which has Ukrainian roots, has offered to support Ukrainian refugees through its representative offices abroad, and the world’s largest forex trading platform Binance has issued a card. of cryptocurrencies special for Ukrainians forced to leave their homes.

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NFT Lender BendDAO Liquidity Tested as ETH Reserves Fall

If you’re borrowing against the bored monkeys, you might want to keep your eyes peeled. Liquidity on the leading lending platform NFT BendDAO has been under a major stress test over the past 24 hours as ETH levels appear to be under pressure. To date, BendDAO’s ETH reserves have been replenished and are north of 800 WETH, however, many have noted that the lender has posted liquidity minimums of just 5 ETH, a dangerously low level for a lending platform of its nature.

BendDAO quickly appeared on the scene and spiced up the NFT conversation a bit, allowing users to leverage their first-rate NFTs as collateral; Let’s take a look at what we know about WETH lender reserves, what we’ve heard so far from the BendDAO team on the matter, and where we go from here.

Liquidity on high alert: how it happened

The often insightful research leader PROOF Collective @NFTStatistics.eth first published a report that gained traction on Crypto Twitter and the NFT community surrounding the issue, highlighting the issue when BendDAO’s liquidity dropped to just over 12 ETH:

He is well. Long discussion on the BendDAO situation:

1) They ran out of ETH. There is only 12.5 WETH in the contract. 2) What does it mean? People who have lent money to others through BendDAO to buy NFTs with leverage cannot withdraw their money. About 15,000 ETH was lent.

(1/9)

— NFTStatistics.eth (@punk9059) August 21, 2022

This conversation led to broader discussions about how the market reacts; Direct economics tells us that the threat of an imminent 100% APR would be powerful enough for many users to return collateral and replenish the DAO’s liquidity reserves. However, a downward spiral may begin if general market sentiment is bearish on NFT, as users will be less inclined to return their collateral if they believe the market will continue to move downwards.

BendDAO was quick to respond to settlement concerns, stating that they “underestimated how illiquid NFTs could be in a bear market when setting initial parameters” and proposing an emergency proposal to the DAO to improve liquidity parameters. This included adjusting the auction period, interest rate bases, settlement limits and the intention to continue the dialogue on the treatment of bad debts. That vote will likely pass.

It’s been an interesting ride over the past few days for holders of the BendDAO $BEND token. | Source: BEND-USDT at TradingView.com

how did we get here

BendDAO has been featured in many talking points among NFT circles lately, seemingly bridging the gap between DeFi and NFTs; The big bet here is whether BendDAO’s decision-making through future proposals will refine the mechanics of the lending process. In this case, the protocol is becoming an important piece of a growing ecosystem that has yet to prove its ability to weather major storms, but could still see substantial community involvement and interest.