DeFi Weekly Wrap: U.S. Treasurys Tokenization, Coinbase Legal Victory, and Jupiter DAO's Launch
Summary:
This week's Finance Redefined newsletter highlights significant developments in decentralized finance (DeFi), with over $1 billion of U.S. Treasurys being tokenized on various blockchains. A U.S. court ruled that Coinbase's self-custody crypto wallet is not a broker, marking a win for DeFi. Coinbase's Base platform sees its total value locked double within a month amid the Memecoin craze. Solana-based decentralized exchange, Jupiter, initiates its native DAO with an initial capital of $137 million. Lastly, the top 100 DeFi tokens experienced a bearish market, although the total value locked in DeFi protocols rose above $100 billion.
Welcome to Finance Redefined, your go-to newsletter for the most critical updates from the decentralized finance (DeFi) landscape from the last seven days. Over $1 billion worth of U.S. Treasury bonds have been tokenized on Ethereum, Polygon, Solana, among other blockchain networks, indicating an increased interest in real-world asset tokenization. In significant regulatory news, a U.S. judge ruled that Coinbase's self-custody crypto wallet cannot be categorized as a broker, which legal experts consider a major blow to the U.S. Securities and Exchange Commission (SEC) and a blessing for DeFi. Base, Coinbase's layer-2 platform, saw its on-chain total value locked (TVL) double within a month due to the Memecoin mania.
More than $1 billion of U.S. Treasurys have found their presence on Ethereum, Polygon, Solana, and similar blockchain networks, with the recent introduction of the BlackRock USD Institutional Digital Liquidity Fund fueling the movement. The Ethereum-based fund, known as "BUIDL," launched on March 20, has a current market cap of $244.8 million. The fund is second-largest in the tokenized government securities sector, attributing its growth to four transactions amounting to $95 million this week.
The recent ruling of a U.S. judge in favor of Coinbase Wallet against SEC accusations is considered a significant victory for self-custody wallets and DeFi apps. The court established that the SEC did not prove that Coinbase ran brokerage activities via Coinbase Wallet, a self-custody crypto wallet application that allows users complete control over their assets.
Jupiter, a Solana-based decentralized exchange (DEX), has launched its native DAO with an initial capital of $137 million. Launched on March 27, Jupiter DAO’s funding includes 10 million USD Coin (USDC) and 100 million of its native JUP token. The DAO intends to facilitate idea allocation with USDC and long-term incentive alignment with JUP tokens.
Base, an Ethereum layer-2 network, saw its TVL double to $2.13 billion within a month. Experts predict that Base could become a hotspot for memecoins. The network reached a TVL of $1 billion on February 27 and crossed the $2 billion threshold within 25 days, as per data from L2Beat.
The top 100 DeFi tokens by market cap experienced a bearish trend this week. The total value locked in DeFi protocols surpassed $100 billion. Please remember to join us next Friday for more important updates, insights, and information about the rapidly evolving DeFi sector.
Published At
3/29/2024 10:25:00 PM
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