Day: September 5, 2023

Breaking: Visa Expands Stablecoin Settlement On Solana

by Blockchain News

Visa Inc. (NYSE: V), a global payments giant, has announced the expansion of its stablecoin settlement capabilities, according to Blockchain.News, incorporating the Solana blockchain and initiating pilot programs with merchant acquirers Worldpay and Nuvei.

A Leap in Cross-Border Settlements

Visa’s latest move aims to modernize cross-border money movement by leveraging stablecoins like Circle’s USDC. The company has already conducted live pilots, transferring millions of USDC between its partners over both the Solana and Ethereum blockchain networks to settle fiat-denominated payments authorized via VisaNet.

By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury,

said Cuy Sheffield, Head of Crypto at Visa.

Building on Previous Success

In 2021, Visa initiated a pilot program with Crypto.com, making it one of the first major payment networks to test stablecoin settlement on the issuance side. The pilot was successful in leveraging USDC and the Ethereum blockchain to receive payments from Crypto.com for cross-border volume on their live card program in Australia.

Before the pilot, Crypto.com Visa cardholders faced a days-long currency conversion process and costly international wire transfers for cross-border purchases. Now, Crypto.com can send USDC directly to a Visa treasury managed Circle account, reducing both time and complexity.

Expanding to Merchant Acquirers

While Visa’s treasury operation continues to test receiving funds on-chain from multiple issuer partners, the new settlement options enable Visa to send funds on-chain to acquirers like Worldpay and Nuvei. These acquirers serve a diverse range of sectors, including blockchain and crypto economy merchants such as on-ramp providers, games, and NFT marketplaces.

Stablecoins like USDC are cutting-edge payments technology that can enable online businesses around the world to accelerate their growth,

said Philip Fayer, Chair and CEO of Nuvei.

Solana’s High-Performance Capabilities

Visa’s decision to add support for Solana was driven by the blockchain’s high performance, seeing 400 millisecond block times and averaging 400 transactions per second (TPS), with surges to more than 2,000 TPS during peak demand. This makes Visa one of the first major payments companies to directly utilize Solana for live settlement payments between its clients.

Future Outlook

Visa’s work with Worldpay and Nuvei represents a significant stride in embracing the innovative potential of digital currencies. With an eye towards an increasingly digital financial landscape, Visa is forging ahead with new partnerships, aiming to be at the forefront of digital currency and blockchain innovation.

Stablecoins Gain Traction in Traditional Finance

The move by Visa comes amid increasing signs that traditional financial institutions are embracing stablecoins. On August 7, 2023, PayPal (NASDAQ: PYPL) announced the launch of its U.S. dollar-denominated stablecoin, PayPal USD (PYUSD), as reported by Blockchain.News, aimed at transforming payments in web3 and digitally native environments.

Furthermore, Tether, the issuer of the largest stablecoin USDT, now ranks 22nd in U.S. Treasury Holdings, surpassing countries like Mexico, Australia, and Spain. Tether Holdings Limited released its Q2 2023 assurance opinion, revealing that its excess reserves have increased by approximately $850 million, reaching a total of $3.3 billion. The company’s operational profits for April to June 2023 exceeded $1 billion, marking a 30% increase quarter over quarter.

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Bloomberg: FTX Bankruptcy Triggers 30% Profit Margin Drop for Crypto Market Makers

by Blockchain News

According to Bloomberg‘s report dated September 5, 2023, liquidity providers Auros, GSR Markets Ltd., and Wintermute Trading Ltd. have disclosed that the bankruptcy of the FTX exchange has led to a 30% reduction in profit margins for crypto market makers. “The FTX debacle was a wake-up call for the industry,” commented Le Shi, head of trade at Auros.

In the wake of the FTX bankruptcy, market makers are re-evaluating their risk profiles and are advised to diversify their operations and store their digital assets away from trading platforms. Auros further elaborated that using intermediary services for collateral storage contributes to a 20%-30% decline in profitability, compared to leveraging coins directly on a trading site.

Meng Hwee Neo, managing director of trading and Singapore co-head at GSR Markets, told Bloomberg that market makers are increasingly focusing on Bitcoin and Ether in a “flight to quality” strategy. While this shift may result in slimmer profit margins, it offers greater volume and business opportunities.

CCData statistics, as cited by Bloomberg, reveal that monthly spot trading volumes on centralized crypto exchanges have plummeted 74%, dropping to $445 billion in August 2023 from $1.1 trillion in January 2022.

Market-making firms like Jane Street Group and Jump Crypto are retreating from the digital asset market due to low trading volumes, increased volatility, and heightened U.S. regulatory scrutiny on exchanges such as Binance Holdings Ltd. and Coinbase Global Inc.

 The repercussions of FTX’s insolvency extend beyond market makers to encompass nearly all entities in the crypto sector. BlockFi’s CEO, whose company also went bankrupt, previously admitted to disregarding advice from their risk management experts on lending assets to Alameda Research and FTX.

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Alchemy Pay to Deploy on Polygon zkEVM Chain

by Blockchain News

Alchemy Pay is partnering with Polygon (MATIC) to deploy its payment services on Polygon’s new zkEVM chain. Alchemy Pay will serve as one of the first fiat-crypto on-ramp providers for the zkEVM ecosystem, allowing users to easily convert their local fiat currencies into cryptocurrencies.

Polygon zkEVM is a zero knowledge scaling solution that combines Ethereum Virtual Machine (EVM) with Ethereum L1 security, reducing transaction costs and increasing throughput. It inherits Ethereum security, offers lower costs compared to L1 and better finality than other L2 solutions, and aims for similar throughput to PoS. Polygon Labs’ breakthroughs aim to achieve full EVM equivalence while offering better performance.

Developers building on this new chain can integrate Alchemy Pay’s direct-to-customer plugin into their decentralized applications (dApps) with minimal hassle. Alchemy Pay already supports a wide range of payment methods, including Visa, Mastercard, Discover, and Diners Club, across 173 countries. It also supports mobile wallets and domestic transfers in developing markets.

zkEVM is a Layer 2 solution for Ethereum, designed to handle more transactions at lower costs. The use of cryptographic zero-knowledge proofs (ZK-Rollups) ensures transaction validity and quick finality.

Developers can use the same tools and code that they use on the Ethereum network, making it easier to migrate or develop new projects. The network inherits the security features of Ethereum, as transactions are grouped into batches with zero-knowledge proofs attesting to their validity.

This partnership aims to make it easier for both developers and end-users to engage with blockchain technology. Lower transaction fees and higher throughput make it a more attractive option for developers and users alike. Jack Melnick, Head of DeFi BD at Polygon Labs, expressed excitement about the project, stating that Alchemy Pay acts as a “user-friendly gateway to the crypto spaces for users.”

Overall, this collaboration between Alchemy Pay and Polygon’s zkEVM chain could be a significant step forward in improving the accessibility and usability of blockchain technology. It combines the strengths of a leading fiat-crypto payment gateway with a scalable, secure Layer 2 solution.

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Binance Introduces New Dual Investment with BTC, ETH, BNB

by Blockchain News

Binance announced today the launch of a new set of Dual Investment products. These products come with updated Target Prices and Settlement Dates, allowing users to either “Sell High” or “Buy Low” on a variety of cryptocurrencies.

Dual Investment is an investment vehicle that doesn’t guarantee the protection of the principal amount invested. The primary risk associated with this product stems from market price fluctuations. During periods of high market volatility, accurately forecasting the gap between the target price and the actual market price at the time of settlement can be challenging. This uncertainty also extends to predicting the currency in which the settlement will occur. Hence, prior to subscribing, it’s crucial to fully comprehend both the features of the product and the associated risks. 

Subscription Mechanics

The subscription format for these new products is on a first-come, first-served basis. According to the announcement, Dual Investment allows users to set a specific price and date in the future for buying or selling selected cryptocurrencies, all without incurring any fees. Once subscribed, the Annual Percentage Rate (APR) will be locked in, despite any market fluctuations that may occur before the subscription.

Target Users and Currencies

The “Sell High” products are designed for users who aim to accumulate higher rewards on their cryptocurrency holdings or sell their deposit currency at a future date for a price higher than the market rate at the time of subscription. The “Buy Low” products, on the other hand, are tailored for those who wish to accumulate high rewards on stablecoin holdings or buy a cryptocurrency at a future date for a lower price than the current market rate.

Settlement Dates

For “Sell High” products with Ethereum (ETH) as the deposit currency and Bitcoin (BTC) as the currency to sell for, the settlement dates range from September 12, 2023, to March 29, 2024. For “Buy Low” products with Bitcoin (BTC) as the deposit currency and Ethereum (ETH) or Binance Coin (BNB) as the currency to buy, the settlement dates are similarly ranged.

Additional Features and Notes

Binance has also introduced a Dual Investment Auto-Compound feature, which users can enable or disable at their discretion. However, it’s worth noting that Dual Investment products cannot be redeemed before the Settlement Date.  (Read Exclusive Interview with CZ by Blockchain.News)

The APR for these products will change in real-time depending on market conditions but will be locked in once the subscription is confirmed.

Risk Factors

While Dual Investment offers a structured way to invest in cryptocurrencies, Binance has stated that it may stop accepting new subscriptions at any time. Therefore, potential investors should exercise due diligence and consider the associated risks.

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SSV Network Unveils Jato-V2 Testnet

by Blockchain News

SSV.Network ($SSV), a decentralized staking protocol, announced the public launch of its new testnet, Jato-V2, on September 4. The new testnet is identical to the version currently running on the mainnet, offering a realistic testing environment for users and developers. The launch also marks the beginning of the end for Jato-V1, which is slated for shutdown on September 18.

Starting September 4, Jato-V2 is open to the public and will run concurrently with the mainnet. Users have a two-week migration period to transition from Jato-V1 to Jato-V2. The testnet has transitioned to an ERC-2535 Diamond Standard, enhancing modularity, scalability, and gas efficiency. The SSV Node now fully supports Miner Extractable Value (MEV), allowing validators to participate in MEV opportunities. The new version allows operators to display more granular information, including geographic location and MEV relays. Optimizations have led to a 30% increase in duty execution.

For existing users, the migration process involves removing validators from the Jato-V1 network and registering them on Jato-V2. New users can directly register on the Jato-V2 testnet. Developers and operators should note that new versions of developer tools and the SDK have been released.

The launch of Jato-V2 is a significant milestone as SSV.Network transitions to its Launch phase, with a Permissionless Launch expected later in Q4. The testnet will play a crucial role in the protocol’s development, especially as it becomes the first DVT network to be tested at scale on mainnet Ethereum.

During the migration period, Jato-V2 will operate under a distinct URL, beta.app.ssv.network. After the shutdown of Jato-V1, the URL will revert to app.ssv.network. 

SSV Network ($SSV) has announced that its Discord channel, which was compromised earlier today, as reported by Blockchain.News was then “back to normal and under control.”

The launch of Jato-V2 marks a pivotal moment for SSV.Network, offering a robust testing environment as the protocol gears up for its next phase. With the shutdown of Jato-V1 imminent, users and developers have a limited window to transition, making it imperative to act swiftly.

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Chinese President Xi Jinping Highlights the Transformative Impact of Blockchain and AI on Global Industries

by Blockchain News

In a congratulatory message to the 2023 China International Intelligent Industry Expo, Chinese President Xi Jinping emphasized the profound changes that emerging technologies like the internet, big data, cloud computing, artificial intelligence (AI), and blockchain are bringing to global industries and lifestyles.

Accelerating Digital Transformation

According to a report from ChainCatcher, Xi Jinping’s message highlighted that these technologies are accelerating the digital, intelligent, and green transformation of industries. “The intelligent industry and digital economy are thriving, significantly altering the global allocation of resources, industrial development models, and people’s lifestyles,” Xi stated.

China’s Digital Economy Focus

China has been placing a high priority on the development of its digital economy. The country is actively promoting the deep integration of digital technologies with its real economy. This involves a collaborative push for digital industrialization and the digitalization of industries, aiming to build a “network powerhouse” and “Digital China.”

Global Implications

The remarks by Xi Jinping come at a time when the global landscape is increasingly influenced by digital technologies. With China being a significant player in the fields of AI and blockchain, the country’s focus on these technologies could have far-reaching implications for global markets and industrial practices.

Data-Driven Insights

As of 2021, China accounted for nearly 21% of the global digital economy, according to data from the China Academy of Information and Communications Technology (CAICT). The country’s investments in AI and blockchain technologies have also seen a steady increase, with a reported $12.4 billion invested in AI alone in 2020, as per data from the Ministry of Science and Technology.

Balanced Perspective

While the message from Xi Jinping is optimistic about the transformative power of new technologies, it is essential to consider the broader context. The acceleration of digital transformation also brings challenges such as data privacy concerns and the potential for increased inequality between those who can and cannot access these technologies.

This is not the first time President Xi has highlighted the importance of blockchain. On October 25, 2019, Xi Jinping stressed the need for China to accelerate blockchain development during a Politburo study session. He highlighted its applications in various sectors, from digital finance to supply chain management, and emphasized the importance of fundamental research and original innovation to position China as a leader in the field.

Conclusion

Xi Jinping’s message serves as a significant indicator of China’s strategic focus on digital technologies as a cornerstone for future development. As these technologies continue to evolve, they are set to play a crucial role in shaping the global economic and industrial landscape.

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习近平：区块链和人工智能等新技术极大改变全球要素资源配置方式、产业发展模式和人民生活方式

by Blockchain News

中国国家主席习近平向 2023 中国国际智能产业博览会致贺信，指出当前互联网、大数据、云计算、人工智能、区块链等新技术深刻演变，产业数字化、智能化、绿色化转型不断加速，智能产业、数字经济蓬勃发展，极大改变全球要素资源配置方式、产业发展模式和人民生活方式。

中国高度重视数字经济发展，持续促进数字技术和实体经济深度融合，协同推进数字产业化和产业数字化，加快建设网络强国、数字中国。

这并不是习近平主席首次强调区块链的重要性。在2019年10月25日的中共中央政治局学习会议上，习近平强调了中国需要加速区块链发展的必要性。他突出了区块链在各个领域，从数字金融到供应链管理，的应用，并强调了基础研究和原创创新对于确立中国作为该领域领导者的重要性。

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Paolo Ardoino: Tether Ranks 22nd in US Treasury Holdings, Surpassing Mexico, Australia, and Spain

by Blockchain News

Tether, USDT issuer, the leading stablecoin in global circulation, now holds $72.5 billion in U.S. Treasury bills, positioning it as the world’s 22nd largest holder. This development coincides with China’s accelerated divestment from U.S. debt, which has seen a reduction of nearly $481 billion from its peak levels. The contrasting strategies highlight the evolving dynamics of global finance and raise questions about the stability of emerging markets.

Tether’s Growing Exposure to U.S. Treasuries

Paolo Ardoino, CTO of Tether and Bitfinex, announced on September 5, 2023, that Tether’s holdings in U.S. Treasury bills have reached $72.5 billion. (Read Exclusive Article contributed by Tether CTO to Blockchain.News)

This places the stablecoin issuer above sovereign nations like the United Arab Emirates, Mexico, Australia, and Spain in terms of U.S. Treasury holdings.

For many of these communities, USDt is a lifeline to protect themselves and their families from the insane inflation of their national currencies,

Ardoino tweeted.

China’s Accelerating Exit from U.S. Debt

In contrast, China’s ownership of U.S. Treasury debt has seen a significant reduction. According to Wall Street Silver, China’s holdings are down almost $481 billion from peak levels, and the rate of selling is accelerating. “You can see how the line is steepening. China is getting out of U.S. debt and buying Gold instead,” the financial commentary platform noted.

Emerging Markets and Financial Stability

The diverging strategies of Tether and China have elicited mixed reactions. Suraj Chawla of GPU.NET questioned the long-term stability of relying on Tether’s U.S. Treasury holdings as a “financial lifeline” for emerging markets.

Propping up economies on shaky grounds creates a facade of stability, not true resilience,

Chawla stated.

BeastOnChain, a crypto analytics platform, offered a different perspective.

This actually highlights the expansion of emerging markets into the Real World Assets (RWA) and the need for a diversified, borderless approach to help people worldwide engage in these emerging markets,

the platform tweeted.

Implications for Global Finance

The expanding U.S. Treasury portfolio of Tether and China’s accelerated shedding of U.S. debt both highlight evolving trends in international finance. Tether’s role as a financial “lifeline” for emerging markets comes with increased scrutiny regarding the long-term stability of these economies, given its substantial investment in U.S. Treasuries. Conversely, China’s pivot from U.S. debt to gold indicates a strategic realignment of its financial holdings, a move that could have implications for the global economic power structure.

Conclusion

As Tether climbs the ranks of global U.S. Treasury holders, its role in emerging markets becomes increasingly significant. However, questions about the stability of these markets persist. Meanwhile, China’s accelerated exit from U.S. debt could have far-reaching implications for global finance. 

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Binance Completes Travala.com AVA Token Swap to Ethereum ERC20

by Blockchain News

Binance, one of the world’s leading cryptocurrency exchanges, announced the completion of the contract swap and rebranding of Travala.com’s native token, AVA. The rebranding and contract swap transition the token from its previous BEP2 and BEP20 standards to the Ethereum ERC20 network.

Key Details

New Smart Contract Address: The new AVA (ERC20) token will operate under the smart contract address 0xa6C0c097741D55ECd9a3A7DeF3A8253fD022ceB9.

Deposits and Withdrawals: Binance has opened the gates for deposits and withdrawals of the new AVA (ERC20) tokens as of September 5, 2023, 12:00 PM.

Old Tokens Renamed: The old BEP2 and BEP20 AVA tokens have been renamed to AVAOLD and will continue to be listed under this ticker on Binance.

Token Swap: Users holding the old AVA tokens, now termed as AVAOLD, can swap these for the new AVA (ERC20) tokens at a 1:1 ratio using the convert function on Binance. However, withdrawals of AVAOLD tokens will not be supported going forward.

Implications for Users

For users, the transition means they will need to deposit their old AVA tokens, now termed AVAOLD, and use the convert function on Binance to swap these for the new ERC20-based AVA tokens. The swap is facilitated at a 1:1 ratio, ensuring no loss of value for the token holders.

Context and Significance

The move to the Ethereum ERC20 standard could potentially offer AVA token greater interoperability and a broader ecosystem for decentralized applications (dApps). Ethereum’s network is one of the most robust and widely-adopted platforms for smart contracts, which could provide AVA with increased utility and adoption rates.

Official Statement

In their official release, Binance stated, “Binance has completed the Travala.com (AVA) contract swap and rebranding plan to AVA (AVA) on Ethereum (ERC20) network. Deposits and withdrawals for the new AVA (ERC20) tokens are now open.”

Conclusion

The contract swap and rebranding of Travala.com’s AVA token to the Ethereum ERC20 standard mark a significant milestone in the token’s lifecycle. With the transition complete, users are advised to swap their old tokens for the new ERC20-based AVA tokens to continue participating in the ecosystem.

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Bitcoin Ordinals Founder Proposes Immutable Metadata for Inscriptions

by Blockchain News

Bitcoin Ordinals (ORDI), a blockchain-based platform known for its unique inscriptions, is on the verge of a significant update. Introduced in January 2023 by Casey Rodarmor, a programmer and artist, as reported by Blockchain.News, Bitcoin Ordinals serve as a system for numbering and tracking individual satoshis, transforming them into non-fungible tokens (NFTs). The platform has now proposed an addition of metadata to these inscriptions.

What are Bitcoin Ordinals?

Bitcoin Ordinals are unique in the blockchain space, offering a way to inscribe digital content directly onto the Bitcoin blockchain. They are based on ordinal theory, which assigns a unique number to each satoshi based on when it was mined. This allows for the tracking, transferring, and imbuing of individual satoshis with meaning. Unlike traditional NFTs on platforms like Ethereum, Bitcoin Ordinals store content or art directly on-chain.

Immutable Metadata

Casey’s recent proposal aims to introduce plain-text key-value pairs as metadata for inscriptions. Made public on September 5, 2023, the proposal is “intentionally simple, supporting only plain-text key-value pairs,” covering “the vast majority of use-cases” and designed to be “human readable and easy to display without a schema.”

No Retroactive Changes

When asked about the possibility of retroactively adding metadata to existing inscriptions, Casey clarified, 

Nope, unfortunately not. Inscriptions are immutable, so it is not possible to add metadata to old inscriptions.

Trading and Wallets

As Bitcoin Ordinals grow in popularity, trading tools are emerging to facilitate the buying and selling of these digital artifacts. Ordinals Wallet and Hiro Wallet, launched in February 2023, are among the trusted platforms that allow users to store, send, and trade Ordinals.

Implications for the Blockchain Industry

The move to add metadata to inscriptions could set a precedent for other blockchain platforms seeking to enhance the utility and readability of their data. However, the immutability factor remains a double-edged sword, offering both security and limitations.

Future Outlook

Bitcoin Ordinals are a burgeoning technology with growing use-cases, including porting Ethereum NFT collections to Bitcoin. As demand increases, the ecosystem is expected to mature, offering more user-friendly journeys.

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Bitcoin (BTC) $ 41,761.19 2.47%
Ethereum (ETH) $ 2,239.42 0.80%
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Bitcoin Cash (BCH) $ 247.63 0.19%