EddieJayonCrypto
8 Dec 22
• Brazilian fintech, MercadoLibre, is in talks to handle payments for WhatsApp• PayPal sets up in Luxembourg as a precursor to European expansion• Japan's Financial Services Authority wants to categorize algorithmic stablecoins like Bitcoin• Circle is on a path to become a full reserve digital bank•...
• Brazilian fintech, MercadoLibre, is in talks to handle payments for WhatsApp• PayPal sets up in Luxembourg as a precursor to European expansion• Japan's Financial Services Authority wants to categorize algorithmic stablecoins like Bitcoin• Circle is on a path to become a full reserve digital bank• Crypto-friendly Signature Bank is cutting crypto deposits between 33%-42% or $8-$10B• Mike Novogratz's Galaxy Digital swoops in and snatches up GK8 from Celsius for $46MWow! There are some big moves going on around the globe that are going to help shape the future of crypto. Here is what is on my mind today.1. Brazilian FinTech, MercadoLibre, is in talks to handle payments for WhatsApp. Apparently they are one of the partners that process payments in Brazil. This is an interesting link-up should it happen. MercadoLibre recently bought shares in 2TM, parent company of Mercado Bitcoin, and Paxos, a regulated blockchain infrastructure platform. 2. So PayPal is about to make some serious moves in the crypto space launching crypto services in Luxembourg. This is a major move and definitely says they are going to start major expansion throughout Europe with their crypto services. Remember, they have a pretty robust payments offering with credit cards and crypto. I also think this is bringing more competition to Stripe. 3. Japan's Financial Services Authority wants to categorize algorithmic stablecoins in much the same way as Bitcoin. Companies issuing stablecoins would need to be licensed like a bank, trust company or transfer service provider. I am expecting other countries to follow suit. TerraUSD was a stablecoin and it wrecked the market when it collapsed. Terra founder, Do Kwon, is pointing fingers at SBF and FTX for its demise and there seems to be enough evidence to give thought to that. 4. Imagine if Circle became a full reserve digital bank. Having indirect access via BlackRock to the Federal Reserve's reserve repurpose (RRP) program gets it a step closer. It would also make people stop and think about the usefulness of a CBDC. This is a technical space, but RRP access qualifies Circle as an indirect investor in the government money market fund. This is a big move that will have big impact down the road. 5. Crypto-friendly Signature Bank is cutting crypto deposits between 33%-42% or $8-$10B. This is because although they are crypto-friendly, they want people to be clear the bank is primarily a federally regulated traditional bank. Crypto deposits currently make up over 23.5% of their deposits and they would like to drop that to below 15%. 6. Mike Novogratz's Galaxy Digital swoops in and snatches up GK8 from Celsius for $46M. That's a 60% discount from the $115M Celsius paid for it back in November 2021. Galaxy Digital saw an opportune time and is executing on their strategy to grow their brokerage business. The deal still requires regulatory approval, but when it gets approved they will gain blockchain developers and cryptographers along with other assets.