The cryptocurrency market remains range bound with Bitcoin (BTC) hovering around $42,000. While preparing this report, Bitcoin was trading at $42, 860, up 0.80% in the past 24 hours. Ethereum (ETH) had gained 1.60% to trade at $2,321. XRP was trading at $0.5075, an increase of 0.80% in the same period.
Major cryptocurrencies, which have gained ground in the past 24 hours, are VeChain (VET, $0.0279, 1.50%), Solana (SOL, $96.48, 1%), EOS (EOS – $0.7151, 2.10%), Bitcoin Cash (BCH, $236.10, 0.20%), Polkadot (DOT, $6.78, 0.50%), Cardano (ADA, $0.4968. 0.40%), Shiba Inu (SHIB, $0.00008930, 0.50%), and ChainLink (LINK – $19.10, 6.40%).
Major cryptocurrencies, that have lost ground in the past 24 hours, are Avalanche (Avax- $34.62, -0.50%), IOTA (IOTA – $0.2442, -0.50%), and Binance Coin (BNB – $302.21, -0.50%),
Government Level Initiatives
UK Progresses Digital Pound Plans Amid Privacy Concerns
The Bank of England and HM Treasury have disclosed the outcomes of their digital pound consultation, initiated in February 2023, garnering 50,000 responses. The primary concerns raised were linked to privacy in the context of a central bank digital currency (CBDC). Even though a final decision is yet to be taken, the UK is committed to introducing legislation before launching a CBDC. The design phase commenced in 2023, aligning with the principles illustrated in the provided diagram.
This stage will continue until at least 2025, when a decision is due on advancing to the development stage, involving prototypes and trials before potential rollout. Privacy safeguards are a priority, with legislation guaranteeing user confidentiality and the Bank studying technologies to prevent access to personal information. Despite these measures, public worries continue. The private sector will create wallet solutions to foster innovation, and there will be no government-initiated programmability, allowing the private sector to improve functionality.
Private Sector Initiatives
EDX Markets Unveils EDX Clearing and Completes Series B Funding Round
Institution-focused cryptocurrency trading platform EDX Markets announced the rollout of EDX Clearing, which will function as a clearing house.
Additionally, it completed the Series B funding round and disclosed information about its performance as of date. There are also reports that the firm intends to set up a derivatives exchange in Singapore with a fresh round of financing.
EDX did not reveal the amount raised in the Series B round, but the Bloomberg report indicates that the valuation was over 100% that of the first (Series A) round. EDX affirmed that a new investor, named Pantera Capital, collaborated with Sequoia Capital in the second funding round. Other founders who took part in the round include Citadel Securities, Virtu, and Financial Fidelity Digital Assets. Investors who participated in the first round are Charles Schwab, DV Crypto, GSR Markets, GTS, HRT Technology, Miami International Holdings, and Paradigm.
Currently, the exchange only offers spot trading in Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH). The aggregate value transacted since the rollout of the platform is $3.10 billion, including $1.40 billion in December.
Even though EDX Markets is aided by multiple TradFi firms, it is not a regulated exchange. Therefore, regulators such as the CFTC or SEC will have a role to play in it. EDX Clearing already holds a money services license in Illinois.
Elwood Technologies Secures FCA License, Backed by Major Investors
Digital assets company Elwood Technologies has received a license from the UK’s regulator, the Financial Conduct Authority, to function as a service company. Elwood offers an institutional execution management platform offering single-point access to multiple digital asset liquidity providers for cryptocurrency traders.
Dawn Capital, Barclays, Citi, Flow Traders, Goldman Sachs, and CommerzVentures are major investors in Elwood. Other than Citi, the rest of the investors took part in Elwood’s $70 million Series A funding in 2022. New investors who joined the bandwagon include Hong Kong’s HashKey and hedge fund Two Sigma. Elwood, similar to other platforms, positions its product offerings as software-as-a-service. Elwood stated that FCA clearance encompasses security tokens and derivatives. As per the FCA’s official webpage, the clearance was given in November.
Miscellaneous
Brinks Partners with BitGo and Invests in Digital Asset Custody
Security firm Brinks, renowned for moving cash, has partnered with digital asset custodial firm BitGo. The firm is also investing in BitGo, but no details were provided. It can be remembered that two years ago, digital asset custodial service provider Metaco, currently owned by Ripple, joined hands with Brinks to safeguard key backups.
In 2023, Brinks also acquired a stake in the NFT company Courtyard. The firm enables the trading of physical collectibles as NFTs for better liquidity. Additionally, the firm retains real-world assets in vaults. In this regard, Brinks move seems to be quite appropriate.
Notably, BitGo raised $100 million in funding through a Series C funding round held in August 2023, giving the company a valuation of $1.75 billion. Nevertheless, the firm did not reveal further information about the investors. Interestingly, Goldman Sachs, DRW, and Galaxy Digital were the prominent participants in the 2017/18 Series B round. Three years ago, Galaxy agreed to take over BitGo for $1.2 billion, but Galaxy scrapped the agreement a year later.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
