Weekly Newsletter – 19 May 2023

Top Stablecoin Issuers Taking Actions to Protect Reserves

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Weekly Summary

  • XRP Gains Ground as U.S. Judge Denies SEC Motion, Leading Ripple’s Court Victory
  • Tether Announces to Buy Bitcoin with 15% Net Profit to Back USDT
  • Circle Moves $8.7B to Repo Agreements in a bid to Protect Reserves
  • European Union Passes Law Requiring Identification for All Crypto Transactions
  • Axie Infinity Rolls Out ‘Lite’ Version of Crypto Game on Apple’s App Store

Industry Stories

XRP Gains as U.S. Judge Denies SEC Motion, Leading Ripple’s Court Victory: Ripple’s XRP saw a 7% increase in value after a judge denied the SEC’s motion to seal internal documents related to William Hinman’s speech. The judge ruled that the documents are relevant to the judicial process and should be publicly accessible. The decision is seen as a victory for Ripple Labs, which is being sued by the SEC for allegedly selling its XRP token as an unregistered security. The ruling favours transparency and public access to the documents, which are crucial to Ripple’s fair notice defence. While the judge granted the sealing of some of Ripple’s financial statements, she denied certain requests. Following the news, XRP’s price rose to $0.4478.

Tether Says It Will Buy Bitcoin for Stablecoin Reserves Using Realised Profits: Tether has announced that it will use a portion of its profits to regularly purchase Bitcoin (BTC) for its stablecoin reserves, starting this month. The company plans to allocate up to 15% of realised profits to buy BTC, which will be added to its reserve surplus. Tether will custody the BTC internally without using third-party custodians. This move aims to strengthen and diversify the stablecoin reserves while capitalising on the price appreciation of Bitcoin. Tether recently revealed holdings of $1.5 billion in BTC and $3.4 billion in gold as part of its reserve assets.

Circle Moves $8.7B to Repo Agreements to Protect Reserves: Circle is moving $8.7 billion of reserves backing USD Coin (USDC) into overnight repurchase agreements (repo) as a precaution against the risk of a U.S. government debt default. The Circle Reserve Fund, managed by BlackRock, entered into tri-party repo agreements with major banks. This move provides additional protection for the USDC reserve in the event of a U.S. debt default. Circle is taking these measures as U.S. lawmakers debate raising the debt ceiling, with Treasury Secretary Janet Yellen warning of a potential cash shortage by early June.

European Union Passes Law Requiring Identification for All Crypto Transactions: The European Union (EU) has passed the Markets in Crypto Assets (MiCA) regulation, which aims to harmonise cryptocurrency laws among its member states. The legislation, which received final approval from the EU council, will require identification for all crypto transactions within the 27 member states. The MiCA law is expected to be implemented in 2024 and aims to protect investors and prevent money laundering and terrorism financing. It also introduces licensing requirements for companies involved in crypto trading, safeguarding, and issuance within the EU. This move puts pressure on other countries, particularly the United States, where regulatory uncertainty persists, as Watcher Guru reported.

Axie Infinity Game Launches on Apple App Store in Key Markets: Crypto game Axie Infinity has launched a “lite” version of the game on Apple’s App Store, allowing users to play without purchasing NFTs. The lite version offers free non-NFT “starter characters”, and is initially rolling out in Latin American and Asian markets. The game operates on the Ethereum-based Ronin sidechain, enabling NFT owners to play their assets on the iOS release. While the starter Axies will remain non-NFTs, the company plans to eventually convert purchased Axies into NFTs. Axie Infinity’s native token, AXS, saw a 9.6% increase in one day following the announcement.

Matrixport Highlight

Matrixport has recently introduced Large Limit Order Trading, a new feature that provides enhanced liquidity and rates for clients with sizable orders. 

The feature enables investors to create limit trading for substantial orders on Matrixport, with an auto-transfer for trade execution occurring on Binance. Investors can keep their assets on Binance or transfer them back to their Matrixport wallet balance as per their preference. 

Large Limit Order Trading is ideal for clients who need increased market depth and liquidity for their substantial trading amount or additional trading pairs. This feature offers benefits such as expanded selection of trading currencies, improved trading rates, increased market depth, enhanced liquidity, and a more convenient user experience. 

Clients can access Large Limit Order Trading under the “Trade” tab in the Matrixport app.

>> Create your limit order on Matrixport

Matrixport News

Matrixport is excited to announce our successful integration with Copper.co’s Clearloop. With this partnership, we can offer pioneering off-exchange collateral management and settlement solutions to our institutional users, who can now secure their assets within Copper’s infrastructure while simultaneously trading on ClearLoop-connected exchanges through Matrixport sub-accounts. This streamlined process ensures our clients are protected from exchange counterparty risks and promotes capital efficiency. 

Matrixport adds support for Radiant Capital (RDNT), a decentralised lending protocol built on Layer Zero. $RDNT is the network’s native utility token, used for RDNT emissions, early exit penalties, and borrowing interest charges. Matrixport users can now seamlessly deposit, withdraw and transfer RDNT on our app.


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