Weekly Newsletter – 5 May 2023

Bitcoin, Ethereum Flat as US Fed Hikes Rates a Quarter points, Signalling a Pause

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Weekly Summary

  • JPMorgan Chase Acquires First Republic’s Deposits as U.S. Regulators Step in
  • Bitcoin Transactions Soar as Ordinals Surge to 3M Inscriptions
  • Pepecoin Soars to $900m Market Cap, Entering Top 100 Cryptocurrencies
  • Crypto Miner Bitdeer Expands to Bhutan, Partners State-Owned Investment Arm 
  • DeFi Protocol Curve Finance Deploys Native Stablecoin on Ethereum Mainnet

Industry Stories

JPMorgan Chase Acquires First Republic’s Deposits as US Regulators Step in: JPMorgan Chase has acquired First Republic, after regulators took possession of the bank following its failed effort to avoid the deposit drain. This marks the third failure of a U.S. bank since March, also the second-largest U.S. bank by assets to collapse after Washington Mutual during the 2008 financial crisis. The acquisition gives JPMorgan all of First Republic’s deposits and a “substantial majority of assets” and will reportedly add over $500m of profit annually, and result in a one-time gain of about $2.6bn. Shares in First Republic had lost 97% as of last Friday’s close.

Bitcoin Transactions Soar as Ordinals Surge to 3M Inscriptions: Data shows that Ordinals, the protocol used for inscribing digital assets on Bitcoin, had its busiest day yet with around 223,000 inscriptions made on Saturday, marking the first time over 200,000 inscriptions were made in a single day. Additionally, the number of Bitcoin transactions neared levels not seen in several years, with the weekly average of daily Bitcoin transactions around 396,000, its highest level since December 2017. The trend was kicked off by a pseudonymous on-chain data enthusiast named Domo, who created the “BRC-20” token standard as an experiment, and as of Sunday, close to 6,900 tokens using the new-developed standard have been launched.

Pepecoin Soars to $900m Market Cap, Entering Top 100 Cryptocurrencies: Meme coin PEPE has seen a massive increase in value, hitting a market cap of $582m on Monday after just two weeks since launch. The ERC-20 token continues to skyrocket and as of May 5, it has soared 90% in the past 24 hours and 730% over the week, reaching almost $900m market cap. PEPE coin is now one of the top 100 cryptocurrencies in the market, and the sudden market interest coincided with a similar rise in Google searches, with its score moving from 3 to 100 in a week. 

Bitdeer to Raise $500M for Bhutan Crypto Mining Operations in Deal With Government: Bhutan’s investment arm, Druk Holding & Investments, is teaming up with Bitdeer Technologies to seek investors for a $500m fund to develop green crypto mining in the country. The fund aims to establish carbon-free digital mining that utilises Bhutan’s abundant hydroelectric power. The initiative is part of the government’s “future-facing” economic strategy, and the focus will initially be on Bitcoin mining. Bitdeer plans to set up a 100 MW operation in Bhutan, with construction scheduled for Q2 2023. The fund-raising effort targeting institutional investors will commence in May.

Curve Finance Deploys Native Stablecoin on Ethereum Mainnet: DeFi protocol Curve Finance has deployed its native stablecoin crvUSD on the Ethereum mainnet, minting a total of $20 million in crvUSD tokens in five transactions within five minutes. Curve’s stablecoin is backed by crypto assets and its price is pegged to $1. The crvUSD stablecoin won’t be accessible to the public until later as it is not yet integrated into Curve’s user interface. The deployment marks a major milestone for rolling out Curve’s long-awaited stablecoin to the public and its governance token CRV has jumped to 97 cents, up 7% for the day.

Matrixport Highlight

Matrixport has been nominated in two categories at the prestigious Hedgeweek European Digital Assets Awards – Best Custodian and Best New Solution Provider. The awards, to be held on 29th June in London, recognise excellence among fund managers and service providers in the digital assets space. Matrixport is thrilled to be nominated and would be honoured to receive investors’ support in the voting process.

HedgeWeek is a magazine that covers news, insights, and analysis for the global hedge fund industry. Its readership includes hedge fund managers, investors, service providers, and other professionals involved in the hedge fund industry.

Click here to vote Today.

Matrixport News

In the post-FTX era, the discussion of tokenised real-world assets secured on the blockchain has gained renewed attention. Matrixport’s John Ge proposed one of such pathways involves the marriage of T-bills and stablecoins. 

Read more on the Matrixport blog.

Matrixport’s Markus Thielen weighs in on the current state of stablecoins with CoinDesk TV with the recent drop in exchange-held stablecoins to a 2-year low, indicating increasing investor aversion to risk. 

Watch the full video to find out more.

Matrixport’s Markus Thielen joins CoinDesk TV’s First Mover to break down crypto trends in the Korean market — from unique altcoin trading activities on crypto exchange Upbit to the recent surge in altcoins and its impact on the broader market. 

Watch the full video to find out more.

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