The Federal Home Loan Banks System is lending to cryptocurrency

According to a report that was published by The Wall Street Journal on January 21, the Federal Home Loan Banks System (FHLB) of the United States is reportedly lending billions of dollars to two of the largest cryptocurrency banks in an effort to mitigate the effects of a surge in withdrawals. This move was made in response to the surge in demand for cryptocurrency withdrawals. The Federal Home Loan Bank is a group of 11 different regional banks from all around the United States that work together to lend money to other financial institutions.

The system, which was established in the midst of the Great Depression to provide assistance for home financing, now has over 6,500 members and 1.1 trillion dollars in assets.

According to reports, during the last three months of 2022, the organisation extended a loan of about $10 billion to the commercial bank Signature Bank, making it one of the biggest deals involving a bank borrowing money in recent years.

The Signature’s blockchain-based digital platform was given the go-ahead by the New York Department of Financial Services in the year 2018.

The study compiled by Silvergate indicates that the average deposits made by digital asset customers during the fourth quarter of 2022 were $7.3 billion. This figure represents a considerable decrease when compared to the amount attained during the third quarter, which was $12 billion.

Following the failure of FTX, traditional finance has been immune to crypto contagion; but, according to the paper, FHLB loans to crypto-exposed institutions might raise that risk.

Senator Elizabeth Warren made the following statement to the WSJ: “this is why I’ve been warning of the dangers of allowing crypto to become intertwined with the banking system.” She claimed that taxpayers should not “be left holding the bag for collapses in the crypto industry,” which she referred to as a market that is full of “fraud, money laundering, and illicit finance.” Senator Warren is a member of the Democratic Party.

The bankruptcy of the FTX group produced a ripple effect across the cryptocurrency business, which affected a number of other firms.

The most recent event to take place was on January 19, when cryptocurrency lender Genesis filed a petition for protection under Chapter 11 of the Bankruptcy Code. Genesis is reported to have liabilities ranging between $1 billion and $10 billion.


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Binance Informs Customers of Upcoming Service Disruption

It has been brought to the attention of the retail customer base of the cryptocurrency exchange Binance that there is a possibility that they may be unable to access their accounts at some point in the not-too-distant future due to the fact that the exchange may go out of business. In the event that anything comparable occurs, there is a possibility that on-ramp and off-ramp bank money transfers will no longer be possible.

Users who wish to buy or sell cryptocurrencies for an amount that is less than one hundred thousand dollars and want to use the SWIFT payment method will be affected by the disruption in service that is currently taking place. After the temporary disruption in operation, customers will only have access to the SWIFT payment method to the extent that their bank accounts are denominated in United States dollars. This is the rationale for the aforementioned limitation.

The day that will mark the beginning of the day is going to be February 1, which is when the implementation period for the new rule is planned to begin. This day will also mark the beginning of the day.

Binance sent an email to its customers, also known as “Binancians,” on the 21st of January to inform them of the news and emphasise that the company is “actively seeking” a new SWIFT (USD) partner in order to prevent service interruptions for upcoming bank payment transfers. Binance customers are also referred to as “Binancians.” People who trade cryptocurrencies on the Binance market are referred to as “Binancians.” In the marketing materials distributed by Binance, customers are referred to not just as “Binancians,” but also as “Binancians.” Residents of Binance are sometimes referred to as “Binancians” when referring to themselves collectively in common vernacular. Binancians are users of the Binance platform who engage in cryptocurrency trading. Binancians are referred to by this platform’s name. The year 2017 marks the beginning of Binance’s operations.


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Mars Hub Launches Independent Cosmos Application Chain

Mars Hub, the original Terra lending system, made an announcement on January 31 about the launch of its separate Cosmos application chain. This announcement was accompanied by the distribution of MARS tokens to customers who held Terra Classic during any of the two snapshots.

According to a statement released on January 20, the Mars Hub mainnet will go live with 16 genesis validators. Some of these validators are Block Pane, Chill Validation, Chorus One, Cosmology, CryptoCrew Validators, and ECO Stake.

Following the launch, there will be a possible expansion of 34 more seats for permissionless validators.

During the launch, a total of 50 million MARS tokens will be assigned to genesis validators, and then they will be restored to the community pool after an interval of one month. According to the release, ” This temporary delegation will assist safeguard the network from assault by a rogue validator that could possibly acquire a substantial delegation of MARS quickly after genesis and begin altering transactions on-chain.” This is noted in the statement. The first launch of the mainnet is the third and final stage of a process that initially consisted of a private testnet for developers and other select members of the community, which was then followed by the launch of a public testnet.

In the beginning of February 2023, the Osmosis blockchain will be used to establish the first Mars settlement.

MARS tokens will be made claimable by qualifying addresses through an airdrop that goes live alongside the mainnet. This will unlock a total of 64.4 million tokens for anyone who owned MARS during the two historical snapshots that were taken on Terra Classic.

A blockchain’s recorded state at a specific moment is saved in a file called a snapshot. This file contains all of the address and transaction data that was previously stored on the blockchain.

The distribution of MARS tokens was decided by snapshots obtained before and after the depeg of Terra Class USD (UST). These snapshots were taken at block 7544910 (May 7, 2022, approximately 11 a.m. EST) and block 7816580 (May 28, 2022, approximately 11 a.m. EST).

The tokens will be made accessible through Station, Terra’s new interchain wallet, beginning six months after the introduction of the platform.

Users who possessed the MARS token on Terra Classic will also gain the ability to rule.

The failure of Terra LUNA and its stablecoin TerraUSD (UST) in May 2022 had a widespread effect on the cryptocurrency markets, causing the values of tokens used in decentralised finance (DeFi) projects that were hosted on the Terra protocol, such as Mars Protocol, to plummet.


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