The Crypto Compass Issue #46

Hello to our dear readers!

In recent developments within the cryptocurrency sector, several major players are making significant strides. Coinbase is enhancing its Commerce product with a new "Onchain Payment Protocol" to facilitate crypto payments on Ethereum, Polygon, and Base, aiming to streamline transactions and mitigate volatility.

Meanwhile, Tether Holdings Ltd. is diversifying its stablecoin-focused operations by venturing into Bitcoin mining with a substantial half-billion-dollar investment plan. In the realm of regulatory advancements, Crypto.com has secured a Virtual Assets Service Provider license in Dubai, enabling it to offer a suite of crypto services, including exchange and broker-dealer functions.

These developments, spanning from innovative payment solutions to mining investments and regulatory achievements, highlight the dynamic and evolving nature of the global cryptocurrency market.

Tether Ventures into Bitcoin Mining with Major Investment Plan

Tether Holdings Ltd., known for operating the $87 billion USDT stablecoin, is branching out into Bitcoin mining with an ambitious investment strategy. The company plans to invest approximately $500 million in the next six months to establish its own mining facilities and acquire stakes in existing mining companies.

This initiative includes a significant part of a $610 million credit facility extended to Northern Data AG, a Bitcoin mining firm. Tether's incoming CEO, Paolo Ardoino, emphasizes the company's serious commitment to becoming a key player in the Bitcoin mining ecosystem.

Tether, which profits from managing assets in USDT's reserve, is diversifying its revenue sources and expanding its presence in the cryptocurrency industry. The company is constructing mining operations in Uruguay, Paraguay, and El Salvador, aiming to achieve a 1% share of the total Bitcoin network's computing power, which would position it among the top 20 global Bitcoin mining companies.

This move into mining represents a significant shift for Tether and is set to introduce fresh dynamics in the competitive mining sector, especially at a time when many miners face financial challenges due to the recent downturn in digital-asset prices.

Promoted - Please email [email protected] for sponsorship enquiries.

Unlock the power of digital finance with Independent Reserve, Singapore's first licensed crypto exchange for all investors. Enjoy benefits like robust security measures, low transaction fees, a user-friendly interface, and 24/7 customer support. Our platform is designed for both beginners and seasoned traders. Experience seamless trading with a dash of excellence. Dive into the crypto realm, backed by trust and transparency. Choose Independent Reserve (ref code: MCKHXL) – where your financial future shines brighter.

Avalanche (AVAX) Soars 17% Following JPMorgan Collaboration

Avalanche (AVAX) has witnessed a significant 17% increase in its price, reaching $19.41, in the wake of a landmark collaboration with Onyx by JPMorgan and Apollo Global. This partnership is part of Project Guardian and involves using LayerZero Labs to connect Onyx with a permissioned Avalanche Evergreen Subnet, aimed at enhancing the asset and wealth management industry.

The collaboration's proof of concept demonstrates the potential of blockchain technology to automate portfolio management, signaling a transformative shift in traditional financial processes. Avalanche's unique features of speed, scalability, and customizability are pivotal in this endeavor, as Evergreen Subnets cater to institutional requirements. This partnership notably positions Avalanche as an influential player in the blockchain integration in financial services.

Coinbase Enhances Commerce Product with New Onchain Payment Protocol

Coinbase has significantly upgraded its Commerce product with the introduction of an open-source "Onchain Payment Protocol," supporting Ethereum, Polygon, and Base blockchain ecosystems. Launched in 2018, Coinbase Commerce enables merchants to accept cryptocurrency payments and has facilitated billions of dollars in transactions.

The latest update addresses issues of crypto volatility and complex payment processes by automatically converting customer crypto payments to the USDC stablecoin. This feature broadens merchant access to a global base of crypto users while mitigating the risks associated with crypto volatility.

The protocol supports a wide range of currencies and tokens across the supported blockchains, offering flexibility and cost-effectiveness compared to traditional credit card fees. Despite challenging market conditions, Coinbase continues to innovate, as evidenced by the recent launch of Base, a Layer 2 network on Ethereum. This update represents a strategic move to enhance crypto payment accessibility and merchant adoption, further integrating cryptocurrency into mainstream commerce.

Happenings of the week

• Santander Private Bank Introduces Bitcoin, Ethereum Trading for Clients in Switzerland

• Fidelity files for spot Ethereum ETF, says approval would be 'major win' for US investors

• Paxos Plans New U.S. Dollar-Backed Token for Singapore Operations

• StanChart launches blockchain unit, eyes Singapore bond fund

• Tokenized Cash Fintech Fnality Raises $95M Led by Goldman and BNP Paribas

Crypto.com Secures License to Operate in Dubai

Crypto.com has achieved a significant milestone in its global expansion by obtaining a Virtual Assets Service Provider (VASP) license in Dubai. This license, granted to the company's Dubai entity CRO DAX Middle East FZE by the Dubai Virtual Assets Regulatory Authority (VARA), paves the way for Crypto.com to offer a range of services including crypto exchange, broker-dealer, investment, lending, and borrowing.

The license is contingent upon meeting certain conditions and localisation requirements set by VARA, after which Crypto.com will receive operational approval to commence its services. This development is part of Crypto.com's broader strategy to expand its presence in key markets worldwide. Earlier, the company secured a Major Payment Institution license for Digital Payment Token services in Singapore and registered with the central bank of the Netherlands.

This expansion underscores Crypto.com's commitment to working with regulators and contributing to the growing crypto ecosystem, particularly in Dubai, a region rapidly emerging as a hub for digital asset innovation and business.

Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!