Weekly Newsletter – 25 Mar 2023

Bitcoin Corrects as Fed Hikes Rate 25bps, After Days Buoying Amid Bank Busts Panic

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Weekly Summary

  • UBS Agrees to Buy Credit Suisse for More Than $2bn to Ease Banking Crisis
  • New York Community Bank to Acquire Most of Signature Bank
  • Telegram Announces USDT Transfer Feature Through Chats
  • Arbitrum to Airdrop New Token and Transition to DAO
  • DefiLlama Resolves Internal Strife and Canceled Forked Website

Industry Stories

UBS Agrees to Buy Credit Suisse for More Than $3bn to Ease Banking Crisis: The Swiss government has brokered the takeover of troubled bank Credit Suisse by rival UBS for nearly $3.25bn (£2.65bn), well below market value, amid fears of a global banking crisis. Private investors who supported Credit Suisse with $16bn of credit are expected to be wiped out by the deal. The crisis at Credit Suisse and the collapse of Silicon Valley Bank (SVB) have fuelled anxiety about the contagion in the international banking system, with some experts warning of a potential “Lehman moment”. The deal was welcomed by the Bank of England, but central banks worldwide took coordinated steps to enhance the provision of liquidity.

New York Community Bank Buys Most of Signature Bank: Shares of New York Community Bancorp (NYCB) surged by 32% in a day, after it announced that it would acquire certain parts of Signature Bank, which was closed by state regulators earlier this month. The deal will include $38 billion worth of assets, $25 billion of which is cash, and approximately $13 billion of loans. However, it will not include Signature’s crypto business or fund banking business. NYCB will assume $34 billion of deposits and 40 Signature bank branches, with the deal expected to grow tangible book value by 15% and boost earnings by over 20%.

Telegram Announces USDT Transfer Feature Through Chats: Telegram users can now send USDT within chats on the messaging app through the @wallet bot. The addition of USDT expands the app’s facility for trading crypto, which already included Bitcoin and Toncoin (TON). Telegram’s interest in cryptocurrency dates back to the development of the TON blockchain project. Integrating crypto payments into messaging apps like Telegram should help mainstream adoption of cryptocurrencies. 

Arbitrum to Airdrop New Token and Transition to DAO: The Arbitrum Foundation has announced the launch of its new token, ARB, which will be airdropped to community members on March 23. The token will mark Arbitrum’s official transition into a decentralised autonomous organisation, giving ARB holders the ability to vote on key decisions governing Arbitrum One and Arbitrum Nova. Although the foundation plans to grant a relatively high number of tokens to investors and core contributors, Offchain Labs CEO Steven Goldfeder, said the ARB token will make the Arbitrum ecosystem more decentralised than alternative scaling chains. 

DefiLlama Resolves Internal Strife and Canceled Forked Website: DeFi analytics platform DefiLlama has resolved an internal conflict that threatened to fork the platform. The company apologised for the debacle due to “poor communication with the team” and confirmed that a new token was not being planned. The controversy was first sparked when developer 0xngmi claimed on Twitter that DefiLlama was “undergoing a hostile takeover”, with the launch of a token called “LLAMA” without employee support. The developer later assured the users that everything relating to the issue has been solved. 

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Matrixport News

Matrixport’s Markus Thielen, Head of Research, highlighted the role of US investors as we keep a close eye on whether Bitcoin will sustain momentum beyond the $30,000 mark. 

Watch the full video on Yahoo Finance

A Matrixport opinion piece by U.S. CEO Anthony DeMartino has been published in Singapore’s Business Times, in which he discusses the banking rescue dilemma. 

Read the article here.


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