MSTR MicroStrategy Inc

Interest rate cuts may impact Treasury bonds and stablecoins

The Federal Reserve cut interest rates by half a percentage point, the first reduction since the onset of the pandemic, aiming to prevent a slowdown in the labor market. With inflation decreasing, the committee projects further cuts until 2025. Despite a growing GDP, concerns about employment persist, leading to this decision. This shift is expected to influence other central banks, which are already considering similar cuts. Experts like Arthur Hayes from BitMEX warn that this could diminish demand for tokenized Treasury bonds. However, Alexander Deschatres from Standard Chartered believes that stablecoins, with a supply of $170 billion, may mitigate this impact by redirecting investments to money market tokens. Despite the cut, yields remain attractive compared to holding stablecoins, while the market for tokenized bonds is growing rapidly.

Just before the highly anticipated interest rate decision from the Federal Reserve, the price of Bitcoin (COIN:BTCUSD) fell below $60,000, down nearly 1% at $59,825. Moments after the Fed announced the 0.5% cut, Bitcoin rose 0.5% to $60,610 in the last check. Key resistance levels for Bitcoin are at $61,500 and $61,750.

Former Coinbase executives launch TrueX, innovative stablecoin exchange

Former Coinbase (NASDAQ:COIN) executives Vishal Gupta and Patrick McCreary have launched TrueX, a non-custodial exchange focused on stablecoin trading, unveiled at the Token2049 conference. The platform employs a proprietary matching engine to optimize trades and uses PayPal USD (COIN:PYUSDUSD) as its standard currency. TrueX offers a separation between trade execution and asset custody, enhancing transaction security. The startup raised $9 million in funding from various investors, including Paxos and the Solana Foundation.

River launches proof of reserves to enhance Bitcoin transparency

River, a Bitcoin exchange in the U.S., has introduced the River Proof of Reserves, allowing clients to verify that their Bitcoin assets are fully reserved. Following failures of exchanges like FTX, this measure aims to boost trust. CEO Alex Leishman emphasized that this initiative sets a new standard for transparency, with River currently securing over $800 million in Bitcoin for its clients.

SIX considers launching cryptocurrency platform for institutional investors

According to the Financial Times, the Swiss stock exchange SIX is exploring the launch of a cryptocurrency trading platform in Europe. Targeted at institutional investors, the platform would support spot and derivative trading. SIX aims to leverage its reputation and Switzerland’s favorable regulations to attract major investors. This move increases competition with dominant exchanges like Coinbase and Binance, which account for approximately 70% of the crypto market’s spot volume.

WisdomTree advances real asset tokenization with new platform

WisdomTree has launched WisdomTree Connect, a platform for tokenizing real-world assets aimed at businesses and institutions. Complementing the WisdomTree Prime app, the new platform allows users to hold tokenized funds in digital wallets using dollars or the USD Coin stablecoin (COIN:USDCUSD). Initially, tokens will be minted on the Ethereum blockchain, with plans to include other blockchains. This initiative aims to integrate traditional and decentralized finance, expanding access to digital financial products for businesses and consumers.

Monerium launches EURe, first euro stablecoin in the Cosmos ecosystem via Noble

Fintech Monerium has launched EURe, the first euro-backed stablecoin in the Cosmos ecosystem, utilizing the Noble blockchain. EURe is backed by euro deposits and integrated with the SEPA system, enabling instant transfers between bank accounts on-chain. Monerium, regulated under the EU’s MiCA framework, has been a pioneer in issuing electronic money on blockchains since 2019. Noble, which also issues USDC from Circle, facilitates interoperability among over 90 blockchains in Cosmos, promoting liquidity and fast transfers, with $280 million in assets and over $3 billion in transfer volume.

Bitcoin ETFs see significant inflows, while Ethereum experiences outflows

On September 17, Bitcoin ETFs attracted $186.8 million, led by Fidelity (AMEX:FBTC) with $56.6 million, Bitwise (AMEX:BITB) with $45.4 million, and Ark (COIN:ARKB) with $42.2 million. VanEck (AMEX:HODL) and Invesco (AMEX:BTCO) also contributed positively. Meanwhile, Ethereum ETFs reported net outflows of $15.1 million on Tuesday, with Grayscale (AMEX:ETHE) seeing a withdrawal of $17.9 million, partially offset by a smaller inflow of $2.8 million from Grayscale Mini Trust (AMEX:ETH).

Leveraged ETFs from MicroStrategy increase exposure to crypto market

REX Shares and Tuttle Capital have launched two new leveraged ETFs, providing 2x long and short exposure to MicroStrategy’s stock (NASDAQ:MSTR). These ETFs follow the success of a similar fund from Defiance launched in August that attracted strong demand. With these launches, investors gain more tools to expose themselves to the volatility and growth of MicroStrategy in the cryptocurrency market.

TRON drives growth with increased transactions and Tether usage

The TRON blockchain recorded 225 million transactions and $220 million in fees last month, along with 14.1 million active users. Growth was fueled by increased Tether (COIN:USDTUSD) transfers and the success of SunPump, a meme coin creation platform. Despite facing challenges in DeFi, TRON (COIN:TRXUSD) continues to expand its capabilities with infrastructure improvements and fee reductions.

Solana faces criticism over inflation and bot activity on its network

Solana, one of the most promising blockchains, has faced criticism for its high inflation and bot activity, according to a report from Cointelegraph Magazine. While the inflation rate has decreased from 8% to 5% since 2021, concerns remain about the sustainability of its economic model. Bot activity has also inflated transaction volume, with many critics questioning the authenticity of the network’s demand. Solana (COIN:SOLUSD) continues to adjust its inflation and governance model to maintain long-term sustainability.

CleanSpark expands Bitcoin mining with new acquisitions in Mississippi

CleanSpark (NASDAQ:CLSK) has acquired two new Bitcoin mining sites in Clinton, Mississippi, for $5.775 million, increasing its capacity to 60.5 MW. The new sites support S21 Pro miners and will provide a combined hash rate of 1 exahash per second. The company plans further expansion, targeting 37 EH/s by the end of 2024 and 50 EH/s in 2025.

Advances in ZK technology drive scalability in blockchains

The month marked a significant advancement in zero-knowledge (ZK) proofs. Polygon Labs acquired VPUs from Fabric Cryptography to enhance ZK verification, while Succinct Labs, alongside Optimism, introduced a framework for migrating optimistic rollups to ZK in an hour. Additionally, RiscZero announced plans to be the distributed computing layer for blockchains. These developments accelerate scalability and privacy, paving the way for proof singularity and greater adoption of blockchain technology.

Michelle Bond pleads not guilty to campaign finance charges

Michelle Bond, former partner of Ryan Salame, pleaded not guilty to four campaign finance-related charges in a New York court. During the September 17 hearing, she contested charges of conspiracy and illegal contributions, claiming Salame, former co-CEO of FTX, funded her campaign with $400,000. Salame has already pleaded guilty and faces a 90-month prison sentence. Bond, who launched a cryptocurrency think tank, remains free on $1 million bail.

Infinex reaches $40 million in NFT sales in four days

Infinex’s new NFT collection, called Patron, raised over $40 million in sales within the first four days, despite a slowdown in the NFT market. With over 74% of the tokens sold, Infinex hopes to attract even more investors. The NFTs are available in three price tiers, and early participants include major industry names. This success comes as blue-chip NFT collections, like CryptoPunks and Bored Ape Yacht Club, face significant declines in their valuations.

Borderless Capital launches $100 million fund for decentralized infrastructure

Borderless Capital has announced its third fund, dedicated to decentralized physical infrastructure networks (DePIN), with a total of $100 million. The fund aims to invest in blockchain projects focused on building and maintaining global physical infrastructure. Led by Álvaro Gracia and Sean Carey, the fund has the support of Peaq, Solana Foundation, Jump Crypto, and IoTeX. DePIN allows individuals to contribute resources to decentralized networks and be rewarded with tokens, promising to revolutionize critical infrastructure.

Dragonfly Capital seeks $500 million for new crypto-focused fund

Dragonfly Capital, a cryptocurrency venture capital firm, aims to raise $500 million for its fourth fund, focusing on early-stage projects. Dragonfly has already secured $250 million and plans to double that amount by early 2025. Although the goal is smaller than that of the previous fund, the move reflects ongoing optimism in the sector, even after recent challenges in the crypto market.