Traditional Finance Firms Embrace Crypto Integration Amid Market Downturn
Summary:
Traditional financial firms are increasingly integrating their operations with digital assets amid the crypto downturn. Several collaborations reflect this trend such as Deutsche Bank's DWS's joint venture to issue a euro-backed stablecoin and Saudi Aramco's agreement with SBI Holdings for potential co-investment in digital assets. Other significant developments include S&P Global's launch of stablecoin ratings, Worldcoin's integration with retail platforms, and Coinbase's expansion of crypto spot trading for international institutional investors.
In the midst of the crypto downturn, traditional financial establishments are increasingly merging their operations, services, and portfolios with digital assets, paving the way for crypto-related solutions. Recent instances encompass DWS, Deutsche Bank's asset management division, initiating a collaborative venture with Galaxy Digital and Flow Traders to launch a euro-backed stablecoin. Additionally, Saudi Aramco, an oil giant, has entered into an agreement with SBI Holdings, a financial service company, to explore potential collaborations in digital assets and co-investments in SBI's digital asset portfolios. In the United Kingdom, pension fund M&G has funneled $20 million into the nation's inaugural regulated Bitcoin derivatives exchange, Global Futures & Options Holdings.
Crypto entities, anticipating an increase in demand from institutional investors by 2024, are preparing to meet it. Notably, on December 13, an alliance between the Iota Foundation and Fireblocks was announced, enabling real-world asset tokenization.
Crypto Biz delves into the continuous transformation in the financial terrain, including S&P Global's launch of stablecoin ratings, Worldcoin's integration with retail, and Coinbase's expansion of international crypto spot trading.
Japan's SBI Holdings, a financial services company, is contemplating entering into a partnership with Saudi Aramco, a state-owned Saudi Arabian oil firm, for digital asset investments and semiconductor production ventures. Based on a ratified Memorandum of Understanding, the companies are considering digital assets collaboration and co-investment in their digital asset portfolios.
S&P Global has rolled out a stablecoin stability evaluation of eight stablecoins. Three, namely, Gemini Dollar, Pax Dollar and USD Coin, were given the highest ratings. The lowest ratings were assigned to TrueUSD and Frax.
The newly launched World ID 2.0 feature by Worldcoin allows users to validate their human identity on multiple platforms including Shopify, Mercado Libre, Reddit and Telegram.
In a recent development, Coinbase is expanding its standard crypto trading services to institutional investors on its global exchange. It aims to gradually roll out the service to retail investors. The exchange currently faces a lawsuit in the United States for alleged unauthorized operations.
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Published At
12/16/2023 12:00:00 AM
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