Company Mastercard is preparing an experiment with token deposits

Company Mastercard says its network will get a “level of programmability” similar to famous crypto-assets

Company Mastercard will begin pilot testing the Multi-Token Network (MTN) with tokenized bank deposits. The first trials will take place in the UK with a number of banks and financial institutions.

Selected banks and financial institutions will be given access to the MTN functionality to develop possible use cases for tokenized deposits.

Raj Damodaran, head of cryptocurrency and blockchain at Mastercard, expects That in the future the initiative will also extend to regulated Stablecoins and CBDC digital national currencies.

“Today, the catalyst for the movement of the global economy is regulated money in banks. We are starting to create tokenized bank deposits. The unit of money in the bank account acts as a digital asset in the blockchain, providing the same level of programmability as digital currencies in the crypto-ecosystem,” he explained in a comment for Coindesk.

In October 2022, Mastercard announced plans to become an intermediary for traditional financial institutions to trade cryptocurrencies. A Crypto Secure tool was also announced. And which will help banks to identify and prevent fraudulent transactions going through crypto exchanges.

Our experts note that earlier it became known that after September 25. The company Paysafe Payment Solutions will stop supporting payment services in euros for the cryptocurrency exchange Binance. Users of the largest cryptocurrency will have to update bank details. And possibly agree to the new terms and conditions to continue using SEPA services.

 

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Miners transferred a record number of mined Bitcoins to exchanges

Miners had similar trends at the peak of the market in late 2021. And when cryptocurrency prices reached historic highs

Bitcoin miners are sending record high amounts of cryptocurrency to exchanges, according to analytics platform Glassnode. In the last week alone, they sent a record $128 million in cryptocurrency to exchanges. This is more than 4 times the amount of their daily income, the representatives noted.

Our experts note that during the bull period in the crypto market in 2021. And there were also several similar bursts of large transfers of miners’ income to exchanges, as they were fixing profits. Also amid the late 2022 crypto market crash, miners were sending large amounts of their Bitcoin earnings to exchanges.

Typically, when miners send their Bitcoin mining profits to exchanges. They do so in preparation to cash out in cryptocurrency to cover costs and lock in profits. Last week, Bitcoin reached its highest price of the year. And in doing so, reaching the $31185 mark on June 24. However, the sales of miners have not yet reflected on the rate of BTC.

Despite Bitcoin’s price growth of more than 80% this year, miners are still facing difficulties. Since July 2022, the profitability of bitcoin mining has fallen by more than 30%. And since the peak of the bull market in 2021, more than 80%. Rising hash rates and record increases in the complexity of mining, as well as rising electricity prices, suggest that selling mined Bitcoins may be a necessity to cover costs.

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The largest bank in Hong Kong, HSBC allowed trading in cryptocurrency ETF shares

Buying shares of four cryptocurrency exchange-traded funds will be available to users through official HSBC trading apps

The largest bank in Hong Kong, HSBC, has allowed customers to buy and sell shares of exchange-traded funds (ETF) for Bitcoin (BTC) and Ethereum (ETH). Which are listed on the Hong Kong Stock Exchange. And becoming the first bank in Hong Kong to officially approve this service. And this was reported by journalist Colin Wu, citing internal bank documents. According to him, such a move will expand opportunities for local users to work with cryptocurrencies.

Several cryptocurrency ETFs are currently registered in Hong Kong. Such as CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF. They are all futures-based funds. And this approach differs from that of the fund of the American investment company BlackRock, which announced the launch of a spot ETF on bitcoin.

Bitcoin Trust and Spot Bitcoin ETFs are products that track the real price of Bitcoin. Their point is to give investors access to BTC through a regulated and familiar product. While not actually owning Bitcoin.

Futures-based exchange-traded funds differ from spot funds in that they offer investors access to futures contracts rather than to an asset.

When you buy units of a spot fund, unlike futures products, there is an actual purchase of Bitcoin in the market. If big players show interest in such a product, it may have an impact on the price of the asset.

At the same time, HSBC launched the Virtual Asset Investor Education Centre. Before trading, users will need to familiarize themselves with basic concepts. And information about the risks involved. The trading service will then be available to them on the HSBC HK Easy Invest app, HSB CHK Mobile Banking and through online banking.

Our experts noted that in 2022, the Hong Kong authorities have set a course to legalize retail transactions in digital currencies. As well as encouraging local licensed crypto-businesses. Also the launch of new assets, linked to the price of cryptocurrencies, on official trading platforms. In March of this year, it was reported that Hong Kong units of mainland Chinese banks. And are considering options to provide services to cryptocurrency companies amid tight restrictions from U.S. regulators.

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Why investors need Bitcoin Cash and why the coin has doubled in a week

Our experts talked about the reasons for Bitcoin Cash price growth and its prospects as an asset for big investors

Bitcoin Cash (BCH) cryptocurrency reacted with a sharp jump to the news of the launch of a cryptocurrency exchange. For institutional investors, EDX Markets and doubled in less than a week.

The cryptocurrency began to rise in value after news of the launch of EDX Markets, a cryptocurrency exchange for institutional investors, in the United States. Which was backed by major financial firms such as Citadel Securities, Fidelity Digital Assets and Charles Schwab. The new exchange offers trading in four cryptocurrencies, including Bitcoin Cash (BCH). The other three assets on EDX were Bitcoin, Ethereum (ETH) and Litecoin (LTC). A week before, BlackRock also applied for an exchange-traded fund (ETF) for Bitcoin, which also added to the market’s optimism.

A bit of history

The cryptocurrency Bitcoin Cash emerged in 2017 as a modified copy (fork) of Bitcoin itself with an increased transaction block size. This approach made payments in BCH faster and cheaper compared to the “original” Bitcoin. But it did not solve a number of other technical problems, including the lack of support from interested professional developers. Proponents of Bitcoin Cash promotion, the most famous of which is considered to be Roger Wehr. He positioned it specifically as a currency for everyday payments, as opposed to Bitcoin as a store of value.

Bitcoin Cash has long been a weak asset, losing most of its development team. The coin’s attractiveness for miners was also questionable. And the development of its ecosystem as a crypto project was losing not only to new tokens and more scalable projects. But also Bitcoin itself as a leader in terms of use as a payment instrument.

Bitcoin Cash now

Now there was a change because BCH had a low base effect. This is when one positive factor was enough for the price to take off. And the participants, who played on the decrease, were liquidated. In fact, the price growth occurred precisely due to liquidations, our experts say.

The second important factor was that BCH appeared as an asset on the EDX Markets. The choice of this asset is clear, because it has almost no risk of being recognized as a security. This means they can be traded without the risk of encountering the actions of regulators. Thus, American investors saw this as a signal to buy the asset. And which in the long run could become a legally traded cryptocurrency in the U.S.

Bitcoin is the undisputed leader among institutional investors. But it so happens that BCH, LTC, ETH as old projects of the crypto market also enjoy some popularity among them. The main reason is that these coins have already proved their viability. And secondly, they are highly likely not to be classified as securities. For institutionalists who don’t just manage their own money. But above all other people’s, this is a large and significant factor in making investment decisions, our experts say

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What will happen to BTC in the coming week

Our experts have analyzed the situation on the crypto market and told how it can change in the short term for BTC and the market as a whole

BTC ended the week with the best result since March 2023. The high of the week was recorded at $31,431.

Several factors increased BTC attractiveness to investors:

– BlackRock has applied to launch a spot crypto ETF. The American investment company was founded in 1988. And is one of the largest asset managers in the world with more than $9 trillion in assets at the end of 2021.
– Following BlackRock, four other organizations filed with the SEC: Fidelity, Invesco, Wisdom Tree and Valkyrie.
– The launch of the EDX Market digital asset platform. Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp. invested in developing the platform.
– The SEC and Binance.US reached an agreement to avoid an asset freeze.
– The U.S. Supreme Court decided to stay the Securities and Exchange Commission’s (SEC) lawsuit against cryptocurrency exchange Coinbase.

The key event of the week was a two-day speech by US Federal Reserve Chairman J. Powell. Speaking to Congress on Thursday, he reiterated his view that further rate hikes are necessary to curb inflation. The strengthening dollar had no effect on Bitcoin dynamics. Investors were resigned to the prospect of further interest rate hikes.

The U.S. dollar began to recover amid risk aversion. This week its recovery may continue. As investors will become more cautious and avoid risky investments. They will keep an eye on inflation data in the U.S. and Europe. As well as speeches by central bankers at the ECB forum.

Important events of the week and prospects

One of the key reports to be released in the U.S. next week is the Personal Consumption Expenditures (PCE) report. And that will be released on Friday (June 30). The core PCE is expected to rise 0.4% in May. And the annual rate will remain at 4.7%. In addition, we will get personal spending and income data. Although the GDP data, which will be released on Thursday. And is an update, market participants can ignore it. Jobless claims will also provide new clues about the state of the labor market.

Buyers have been able to push the cryptocurrency’s price up to the $31,000 level of April 14, 2023. And that’s very good for them, as it has opened the road to the $34k level.

The technical picture on the hourly timeframe indicates a possible correction to $29,650.

Our experts note that the growth phase will last until the third decade of July. However, sentiment on the crypto market changes quickly. Therefore, fixing on long positions is possible, if the news become negative. In this case it may take until August to reach the target area.

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Why Bitcoin rose in price and what will happen next

Our experts talked about the causes of growth in the price of Bitcoin and how it will behave in the near future

Between June 15 and June 22, 2023, the most capitalized cryptocurrency, Bitcoin (BTC), went up nearly 24%. The coin crossed the local maximum, which was fixed on April 14, 2023 at the level of $30,958.

Bitcoin, followed by the whole market of digital assets, went up on the background of a number of positive news. Our experts believe that the driver could be the renewed race by major corporations for the right to obtain permission. This will make it possible to launch the first Bitcoin-based spot exchange traded fund (ETF) in the U.S. market and the interest of large companies in cryptocurrencies.

On June 15, it became known that BlackRock, a major investment firm, filed an application with the SEC to launch a bitcoin trust. This company’s initiative, if approved, could simplify institutional access to the crypto industry, our experts say.

On June 20, Deutsche Bank, one of Germany’s largest financial conglomerates, announced its intention to provide cryptocurrency services. In parallel, Wall Street giants Citadel, Fidelity and Charles Schwab launched their own decentralized crypto exchange. On June 21, one of the world’s largest investment firms, Invesco, applied to launch a spot Bitcoin ETF. All this news had a positive impact on cryptocurrency rates.

Major companies enter cryptoindustry

Interestingly, large companies enter the crypto industry despite the fact that it is under pressure from the U.S. Securities and Exchange Commission (SEC).

It is noteworthy that not only members of the crypto community do not approve of the SEC’s actions. But also representatives of the authorities. For example, Warren Davidson, a member of the House Committee on Financial Services, suggested that the current head of the regulator, Gary Gensler, should be fired.

Also after this news was the statement of the head of FRS Jerome Powell about the need to connect the Federal Reserve to regulate the stablecoin market. Which he called “a form of money” rather than securities.

Powell’s hints about the possibility of further rate hikes should also not be forgotten. Since the U.S. inflation target has not yet been reached. And rate changes could put pressure on the stock market, followed by the movements of cryptocurrencies.

To summarize the intermediate results, active market growth was realized amid unprecedented pressure from U.S. regulators on the crypto industry. The interest of large corporations in cryptocurrencies in the current market conditions looks suspicious.

Possible further growth

In order to expect further growth, for example, to the levels of $40 thousand and $45 thousand. It is necessary for the price to fix above the maximums of April in the nearest days.

Our experts expect further growth of BTC price this year. A lot of fundamental factors point to it. But it’s hard to say for sure whether the growth of recent days is the movement that will lead the price to further significant growth.

It is possible that the slight sideways dynamics, observed over the last couple of months, will continue on BTC for a while longer.

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How is the new EDX cryptocurrency exchange organized?

Our experts tell us what we need to know about the new EDX exchange for institutional investors with support from Fidelity and Charles Schwab

A new crypto exchange, EDX, started operating in the U.S. It is backed by such well-known players in the market of traditional finance as Citadel Securities, Fidelity and Charles Schwab. This development could change the digital asset landscape amid increased U.S. attention to the sector.

According to the press release, EDX was launched to “meet the needs of the world’s largest and most advanced financial institutions.” And many of which are still interested in cryptocurrencies. But they are skeptical of existing platforms, also because of the regulatory uncertainty they now find themselves in. The launch of the site coincided with a surge in Bitcoin. It was just after news of an application for a Bitcoin ETF by BlackRock.

The EDX Markets exchange for institutional investors only was first announced in September 2022. In addition to Bitcoin, the exchange allows trading in three other cryptocurrencies – Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). None of them were equated with securities in the sensational lawsuits from the SEC against major cryptocurrency exchanges Binance and Coinbase.

Unlike existing crypto platforms, EDX offers a so-called non-custodial model. And that means it won’t store customers’ digital assets during trading. Instead, EDX works with a third-party custodian. According to EDX Markets CEO Jamil Nazarali, the expectation of regulators. That crypto exchanges should be separated from broker-dealer functions, similar to the structure of traditional financial markets, will create opportunities for EDX.

Major Investors

The first capital to develop the exchange came from venture capital firms Paradigm, Sequoia Capital and Virtu Financial. By the time of launch, EDX had raised additional funding from new investors, including Miami International Holdings, GTS, GSR Markets and HRT Technology. At the end of the year, the company plans to launch its own EDX Clearing service for trades on the exchange.

The Sequoia portfolio also includes other major cryptoservices. The company has invested, for example, in projects such as Filecoiln and LayerZero. Paradigm focuses exclusively on the crypto market and has supported dozens of blockchain startups, including Uniswap, OpenSea, Synthetix, Starkware, Phantom, Optimism, dYdX, Blur and others.

The traditional market enters the cryptocurrency market

EDX customers will still be able to trade the four cryptocurrencies almost around the clock. But the site will share the functions of broker, dealer and exchange.

Many potential crypto investors are still interested in this area. But they are wary of the inherent volatility of the crypto market. Taking the example of the traditional stock market. And now EDX wants to attract these risk-averse customers. The exchange is aimed primarily at large investors. As well as those investors who are put off by the regulatory uncertainty and instability of the crypto industry.

Instead of retail investors trading cryptocurrencies directly through the EDX platform. And as is the case with other exchanges, they will interact with intermediaries. A similar approach is taken, for example, in stock trading on the New York Stock Exchange (NYSE). The reliability of such intermediaries is also an argument for potential clients.

“There’s no way someone trading through a reliable intermediary will lose a hard drive with $200 million worth of cryptocurrency keys and then spend years looking for it in a landfill,” says Jamila Nazarali, CEO of EDX Markets. And recalling that such cases did occur.

Our experts point out that the site will also provide clients with access to more favorable prices through transactions with special quotes for retail-only quotes. Because institutional traders often buy the asset in large quantities. Their transactions often lead to an increase in the price of such an asset, which leads to losses for market makers. To minimize this, the platforms can set inflated commissions. And which will be strongly felt for retail traders who trade in much smaller volumes. By isolating retail trading, EDX can offer clients better prices for small trades.

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Deutsche Bank applied for cryptocurrency license

Deutsche Bank plans to increase fee income through new services and product offerings related to digital assets

Deutsche Bank has applied to the German Federal Financial Supervisory Authority (BaFin) for a license to provide digital asset custody services, Bloomberg writes.

“We are growing our digital asset and custody business. We just applied to Bafin for a digital asset license,” David Lynn, Deutsche Bank’s head of corporate banking, said at a conference June 20.

The move is part of the bank’s strategy to boost fee income, Lynn said. It also reflects the efforts of Deutsche Bank’s investment arm, DWS Group. On increasing revenue from cryptocurrency-related products.

Our experts point out that Deutsche Bank can hardly be called a cryptocurrency-friendly bank. However, its customers could buy cryptocurrencies using their bank accounts or cards from appropriately licensed European cryptocurrency companies.

The bank itself did not provide cryptocurrency services due to the lack of legislation. And companies offering crypto services in Germany opened accounts with other organizations (such as Solaris Bank) for their activities.

The cryptocurrency storage service launched by Deutche Bank is the easiest in terms of IT and regulation. This is made possible by the adoption of Markets in Crypto-Assets (MiCA) regulations. Which opens the door for many financial institutions in the EU to provide crypto services.

Also the Council of Europe announced the adoption of new legal rules for the digital asset industry in the EU MiCA in mid-May. The rules oblige cryptoplatforms, such as exchanges and custodians (asset custodians), to be mandatorily registered in one of the bloc’s member countries.

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Three companies applied for Bitcoin-ETF following BlackRock

WisdomTree, Invesco and Bitwise followed BlackRock’s lead and applied for permission to launch a spot exchange-traded BTC product (ETF)

Three major investment companies applied for Bitcoin-ETF following BlackRock. Following it, WisdomTree, Invesco and Bitwise applied to the U.S. Securities and Exchange Commission (SEC) for permission to launch a spot exchange-traded product based on the first cryptocurrency.

Asset manager WisdomTree is trying for the third time to get permission to create a spot Bitcoin ETF in the U.S. On June 20, it applied to launch the new product on the Cboe BZX exchange under the ticker BTCW.

Another company, Invesco, which has $1.4 trillion in assets under management, also reapplied for a Bitcoin-based spot exchange-traded fund.

Bitwise, a cryptocurrency-focused asset management company, has applied for ETF approval from the SEC, taking its cue from BlackRock, according to Blockworks. It had already applied once before, in 2021, but the regulator rejected it in the summer of 2022.

In all, more than 30 attempts have been made by various companies to create a spot exchange-traded fund for Bitcoin. But all applications were rejected by regulators, who cited market problems and a lack of investor protection.

Despite the constant rejections, on June 15, iShares, a division of investment firm BlackRock. And which has about $9 trillion under management, filed paperwork to register the iShares Bitcoin Trust. This was the impetus for other major companies to once again try to launch Bitcoin exchange-traded products.

Our experts note that after WisdomTree, Invesco and Bitwise became known on the evening of June 20. BTC price began to rise.

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Cyber security companies warn of new virus software distribution

A virus software that attacks dozens of crypto-applications, called Mystic Stealer, has spread on the web.

Mystic Stealer is a virus program. It costs $150 per month and targets 21 cryptocurrency applications. As well as 40 browsers, more than 50 cryptocurrency browser extensions and many other services and plugins.

Reports on Mystic Stealer, published almost simultaneously by cybersecurity companies InQuest, Zscaler and Cyfirma, warn of the spread of the new malware and its effectiveness.

The program is rapidly gaining popularity in the cybercriminal community and is increasingly being used in attacks, the experts warned.

Mystic Stealer released version 1.0 in April but had already been updated to version 1.2 by the end of May. The vendor advertised the new software on various hacker forums. While offering it on a subscription basis of $150 per month or $390 per quarter. The project also has a telegram channel where development news, software features and other topics are discussed.

When launched for the first time, Mystic collects information about the operating system and sends data to the attacker’s server. Then it already performs its specific tasks of looking for data stored in browsers (cookies) and applications.

The full list of services that the program hacks is given in the Zscaler and InQuest report. They include Chrome, Edge, Firefox and Opera browsers. As well as browser-based cryptocurrency wallets TronLink, BinanceChain, Coinbase Wallet, MetaMask and many others.

The Cyfirma report states that industry “veterans” have tested the effectiveness of the virus program and confirmed that the program has become a powerful tool for stealing information.

Our experts also note that Mystic’s developer banned the program’s use in CIS countries and added an exception for those regions to its code.

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