Author: Bloomberg
Crypto.com, which has been grabbing headlines lately with its naming-rights deals, is expanding its footprint in another way: Buying two exchanges from financial services firm IG Group Holdings Plc. The cryptocurrency platform agreed to acquire the North American Derivatives Exchange Inc. (Nadex) and IG’s nearly 40% stake in the Small Exchange Inc. for $216 million in cash, according to a statement from IG Group. IG Group shares rose as much as 1.8% in London. The Small Exchange, which is based in Chicago and counts Citadel Securities, Jump Capital, Interactive Brokers Group Inc. and Peak6 Investments among its investors, recently added crypto-related futures to its product…
Japan’s new political leadership is calling on the country’s financial bureaucrats to ramp up efforts toward issuing a digital currency, pointing to China’s far quicker progress as a potential challenge to the global economic order. The government has increased staff looking into legal and technical aspects of issuing a central bank digital currency (CBDC), which are digital forms of existing currencies. While the political attention has yet to translate into any other direct investment, it is also likely to keep the Bank of Japan (BOJ) under pressure to shift away from its cautious, baby-step approach toward issuing a digital yen,…
Ethereum is making big changes. Perhaps the most important is the jettisoning of the “miners” who track and validate transactions on the world’s most-used blockchain network. Miners are the heart of a system known as proof of work that was pioneered by Bitcoin and adopted by Ethereum, the platform that supports Ether, the runner-up to Bitcoin as the world’s most valuable cryptocurrency. Proof of work has come under increasing criticism for its environmental impact: Bitcoin miners now use as much electricity as Chile. Proof of stake, which Ethereum plans to phase in during 2022, will be greener and faster. Proponents…
Novogratz’s Galaxy Gives is working with the Robin Hood Foundation, the Ford Foundation and other philanthropic groups to form NYC Speaks, a $2 million effort to solicit input from residents about what policies and initiatives Adams should prioritize when he takes office. Over seven months, the initiative will conduct a citywide survey and a series of community discussions and planning workshops that will help inform Adams’s early policy moves and the city’s next budget, which is due next June. The public engagement effort is philanthropic in nature and separate from campaign financing or transition funding, which are subject to city rules on campaign spending.…
A Thai crypto exchange that notched up a valuation of more than $1 billion in less than four years is planning to offer a range of digital currencies and services in more countries “to become the Coinbase of Southeast Asia,” according to its chief executive officer. Bangkok-based Bitkub Online Co. is exploring opportunities to set up its own units or partner with existing players in countries such as Malaysia, the Philippines and Laos next year, Jirayut Srupsrisopa said. The technology and products will likely remain the same as offered by Bitkub, he said. Bitkub’s regional expansion is spurred by its success…
Anthony Scaramucci’s flagship vehicle for investing in hedge funds increased its exposure to crypto-related assets by almost 150% during the third quarter. Investments in digital funds and securities in the SkyBridge Multi-Adviser Hedge Fund Portfolios totaled $485 million at the end of September, up from $195 million on June 30, according a regulatory filing this week. The increase reflected new investments and market appreciation. The fund’s net assets fell about 10% in the period to $2.4 billion, fueled by redemptions. The Bloomberg Galaxy Crypto Index rose 23% in the third quarter, rebounding from a 13% slide during the previous three-month…
Crypto exchange Bullish said it’s started trading for institutional clients and eventually plans to expand retail operations. The company, founded by Block.One, a software company backed by Peter Thiel and hedge fund managers Alan Howard and Louis Bacon, will offer trading on Bitcoin, Ether, Eos and USDC. The platform isn’t available in the U.S. yet, but will be open in other countries including the U.K., Germany and Brazil. Bullish said separately that it’s still planning to go public via a merger with special-purpose acquisition company Far Peak Acquisition Corp. The deal is expected to close before March 2022, the company…
Even as cryptocurrencies have skyrocketed in price, there’s always been the question of what they can really be used for. One of the stronger use cases is remittances—the cross-border cash transfers that have long been dominated by the likes of Western Union Co. and MoneyGram International Inc. Intuitively, a technology that allows one person to send money to another without an intermediary could make remittances quicker and cheaper. There are still huge barriers, from the wild volatility of many cryptocurrencies to the complexities of buying them in one country and then converting them back to traditional cash in another. Bitso, a…
Banking has always meant bankers, the intermediaries who are trusted to arrange financial transactions and are responsible for their safe execution. But what if nobody were in the middle, just some computer code? That’s the goal of what’s known as decentralized finance, or DeFi, a movement that’s grown out of a decade of experimentation with cryptocurrencies and the blockchain technology behind them. A DeFi world in which counterparties interact directly via so-called smart contracts would be more efficient and fair, its proponents say. Critics say that DeFi is just the latest installment of the hype, speculation and money-losing possibilities that…
Vignesh Sundaresan, also known as MetaKovan, spent $69.3 million on a Beeple non-fungible token earlier this year, but he’s not very possessive about it. The beauty of an NFT is that everyone gets to enjoy it, the Indian cryptocurrency entrepreneur and investor said in an interview with Bloomberg News. In fact, he’d be happy if everyone downloaded a copy of “Everydays: the First 5000 Days.” The blockbuster price he paid helped bring attention to the burgeoning market for NFTs, which has exploded in popularity since then. It’s gotten attention for the potential of the technology as well as the numerous brands and celebrities piling…