A Weekly Review of Crypto Assets | Stablecoin issuer Paxos applies to become a national bank, MicroStrategy 650 million US dollars plus Bitcoin


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Author: Liang Che

Source: Bitpush.News

Original title: Bi-tweet one week review | MicroStrategy, the sweetness of buying Bitcoin, is here again

This week’s cryptocurrency market went out of a W-shaped trend. Bitcoin, the most valuable cryptocurrency by market value, fell below $19,000 and fell below $18,000 twice in the middle of the week, but the price of Bitcoin rebounded slightly on Saturday. MicroStrategy, which previously invested $425 million in Bitcoin, has once again increased its position in Bitcoin.


Business intelligence company MicroStrategy announced on Monday that it plans to raise $400 million through advanced convertible notes and use the net proceeds from this process to buy bitcoin. On Wednesday, MicroStrategy announced that it will issue convertible senior notes worth US$550 million.

However, on Friday, MicroStrategy announced that it had raised $650 million through the sale of convertible senior notes due in 2025 to buy more bitcoins. MicroStrategy estimates that, after deducting discounts and commissions from the original purchaser and the estimated selling fees the company should pay, the net proceeds from the sale of the notes are approximately $634.9 million.

However, Citibank downgraded MicroStrategy’s stock rating from “Neutral” to “Sell”. Analyst Tyler Radke believes that the company and CEO Michael Saylor’s “excessive focus on Bitcoin” raises the risks faced by investors.

Another giant that has been involved in Bitcoin this week is the insurance company MassMutual, which has bought $100 million worth of Bitcoin for its general investment account. The purchase was completed through the New York Digital Investment Group (NYDIG).

Shaan Puri, the former CEO of social networking platform Bebo, announced this week that a quarter of his assets will be invested in Bitcoin. He said that now is a rare opportunity to enter the market before the wave of institutional capital.

JPMorgan Chase believes that due to the existence of Bitcoin, gold will be affected in the next few years. According to a report released by the company, JP Morgan Chase analysts such as Nikolaos Panigirtzoglou believe that the rise of cryptocurrencies in the mainstream financial sector is at the expense of gold. Investors’ acceptance of Bitcoin has just begun. Funds in gold ETFs are losing, and Bitcoin-related funds are absorbing more funds.

Square announced the launch of a Bitcoin clean energy investment program on Tuesday, which aims to promote the use of clean energy for Bitcoin mining. Jack Dorsey, Square’s co-founder and CEO, said, “We believe that cryptocurrency will eventually be driven entirely by clean energy, eliminating its carbon footprint and promoting the global popularity of renewable energy.”

Supervision and litigation

According to public documents, Paxos, a stablecoin issuer and crypto service company, has applied to the U.S. Office of the Comptroller of Currency (OCC) to become a National Bank of the United States, named Paxos National Trust. The bank plans to operate in New York and will assist the company in providing cash custody, Cryptocurrency services, digital asset issuance, securities clearing, commodity trading, KYC and other services.

This week, Russian President Vladimir Putin signed an order requiring government officials to report cryptocurrency holdings. According to this document, current civil servants and those who are about to take up government positions must disclose the digital assets they own, including the number of purchases and platforms. The first report must be made between January 1 and June 30, 2021.

After a long extradition dispute, Alexander Vinnik, a Russian BTC-e exchange operator, was sentenced to five years in prison by a French judge. According to Russian media Novaya Gazeta, Vinnik was sentenced to five years in prison and fined 100,000 euros ($121,000) for “participating in organized money laundering activities and providing false information about sources of income”.

Earlier this month, the social media giant Facebook-backed encryption project Libra announced that it was renamed Diem, but this may lead to a lawsuit. Diem, a financial technology startup based in London, UK, threatened to initiate a lawsuit against Facebook and its partners, arguing that the new term Libra constituted an infringement of the company.


BBVA is preparing to enter the cryptocurrency trading and custody market. The source said that BBVA is “initiating its European encryption plan from Switzerland”. The project may be launched “around Christmas” and is still solving related regulatory and compliance issues.

Fidelity Digital Assets announced on Wednesday that it will allow its institutional clients to use Bitcoin as collateral for cash loans. According to Bloomberg News, Fidelity Digital Assets chief Tom Jessop said that the company will cooperate with blockchain startup BlockFi to launch this product. Fidelity will hold digital assets, but the loan will be issued by BlockFi.

Singapore’s largest bank DBS Bank (DBS) announced on Thursday that it will launch a digital asset exchange, and the Singapore Stock Exchange (SGX) will hold 10% of the new crypto trading platform. According to the bank’s official announcement, the platform, called DBS Digital Exchange, is only open to institutions and accredited investors, and it will become a regulated platform for issuing and trading securities tokens.

Investment bank JPMorgan Chase stated that it has completed a real-time intraday repurchase transaction using a blockchain solution. The bank officially announced the news on Thursday. This repurchase transaction was carried out between the brokerage dealer and the bank entity. The blockchain application used by the exchange was developed internally by JPMorgan Chase and is said to support The settlement of such transactions in hours rather than days.

Oasis Labs, a blockchain privacy computing platform, announced a partnership with the BMW Group. The two parties jointly launched an early project that will use differential privacy to set new standards for the use of data in the automotive industry, aiming to build the next generation of data Privacy technology.

IBM and eProvenance, a company that specializes in monitoring and analyzing wine transportation, announced the launch of VinAssure, a supply chain tracking platform to provide a more intelligent and highly secure way to track the entire process of wine from harvesting to sales. Consumers can use existing identifiers (such as the QR code on the bottle) to understand the origin and flavor characteristics of the wine, whether it is organic, and whether it meets biodynamic or sustainability certification standards.

Wal-Mart’s Canadian subsidiary is using Toronto-based blockchain company DLT Labs’ DL Freight enterprise blockchain solution to simplify its entire supply chain invoicing process. The collaboration with DL Freight is part of a major US$3.5 billion plan to transform stores, digital operations and technology.


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