DTCC to Acquire Securrency, Advancing in Digital Asset Infrastructure

The Depository Trust and Clearing Corporation (DTCC) has solidified its position in the digital asset sphere by confirming its intention to acquire Securrency, a firm renowned for its expertise in digital asset infrastructure development. This acquisition aligns with DTCC’s strategic vision of seamlessly integrating digital assets with its pre-existing products and services. The specifics of the deal remain confidential, but indications suggest a closure “in the coming weeks.”

Post-acquisition, Securrency will undergo a rebranding transition to become DTCC Digital Assets. This name change won’t affect the existing workforce. The senior leadership and an additional contingent of around 100 employees will remain part of the newly branded entity.

Securrency’s growth trajectory has been bolstered by investments from significant players like State Street, U.S. Bank, WisdomTree, and Abu Dhabi Catalyst Partners. In addition to these financial endorsements, the firm has collaborated with GK8, a company recognized for its proficiency in cybersecurity and digital asset custodianship.

The official statement from DTCC highlights its plan to make Securrency’s groundbreaking technology available for licensing. This move is anticipated to catalyze the interoperability of diverse distributed ledger systems. Notably, the technology has already been incorporated into the WisdomTree Prime platform, a digital asset management tool.

Originating in the U.S., DTCC has established itself as a premier clearing and settlement service, with regional branches worldwide. In 2022, DTCC and its affiliates processed a staggering $2.5 quadrillion in securities settlements. Furthermore, the company’s depository division managed the custody and servicing of securities approximating $72 trillion, sourced from over 150 countries and territories.

Although blockchain technology has been in existence for a while, its integration into mainstream sectors only commenced around 2020. DTCC marked its foray into this space in December, participating in a pilot project focused on tokenized securities settlement using a simulated digital dollar. This trial, executed in partnership with the Digital Dollar Project, tested transactions with tokenized securities using T2, T1, and T0 settlements.

On October 19, 2023, DTCC announced its definitive agreement to acquire Securrency Inc., emphasizing its commitment to bridging industry-standard practices with advanced digital technology. This move is set to position DTCC as a global leader in the digital asset sector. Securrency’s assimilation into DTCC will culminate in its rebranding to DTCC Digital Assets, with key personnel like Nadine Chakar, CEO of Securrency, taking on pivotal roles in the new organizational structure.

By amalgamating DTCC’s digital prowess with Securrency’s technology, DTCC aims to spearhead the development of its digital asset platform, emphasizing institutional DeFi. Furthermore, DTCC will take the reins in leading the global development of a robust digital infrastructure, licensing Securrency’s technology, and offering specialized services.

DTCC, with its rich 50-year legacy, stands as the world’s premier post-trade market infrastructure. Its global presence spans 20 locations, offering automated, centralized, and standardized financial transaction processing. In 2022, the firm’s transaction value reached an astounding U.S. $2.5 quadrillion, with its depository subsidiary managing securities valued at U.S. $72 trillion.

Securrency stands out as an institutional-grade digital asset infrastructure provider. It offers transformative solutions facilitating the trading, settlement, and servicing of digital assets. Its innovative product suite is poised to accelerate the institutional adoption of blockchain technology.

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MicroStrategy Acquires Additional 5,445 Bitcoins, Total Holdings Reach 158,245 BTC

Key Takeaways

MicroStrategy purchases 5,445 more Bitcoins for approximately $147.3 million.

The company now holds a total of 158,245 Bitcoins, acquired at an average price of $29,582 per Bitcoin.

The acquisition comes amid a period of relative price stability for Bitcoin, which is currently trading around $26,000.

Strategic Investment

MicroStrategy, a leading business intelligence firm, has further solidified its position as a significant Bitcoin investor by acquiring an additional 5,445 BTC. The announcement was made by Michael Saylor, the company’s co-founder and executive chairman, on X (formerly known as Twitter) on September 25, 2023. The acquisition was completed for a total cash payment of $147.3 million, averaging $27,053 per Bitcoin.

Regulatory Filing Details

According to a Form 8-K filing submitted to the United States Securities and Exchange Commission (SEC), the latest acquisition took place between August 1 and September 24, 2023. As of the latter date, MicroStrategy and its subsidiaries control approximately 158,245 Bitcoins. These assets were acquired at an average price of $29,582 per Bitcoin, inclusive of all fees and expenditures. The aggregate purchase price for all Bitcoin assets held by the company stands at around $4.68 billion.

Market Context

The acquisition comes at a time when Bitcoin prices have shown relative stability, hovering around the $26,000 mark for several weeks. After peaking close to $28,000 on August 29, the cryptocurrency hit a low of $25,000 on September 11. According to data from CoinGecko, the current market price of Bitcoin is $26,081, representing a 1.9% decrease over the last 24 hours and a 4% decrease over the past week.

Company’s Bitcoin Strategy

This latest acquisition reinforces MicroStrategy’s bullish stance on Bitcoin. Earlier in June 2023, the company purchased 12,333 Bitcoins for a total of $347 million, at an average price of $29,668 per coin. Notably, MicroStrategy reported its first profitable quarter since 2020 in Q1 2023, thanks in part to a one-time income tax gain.

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JPMorgan to Acquire First Republic Bank Assets

JPMorgan Chase is poised to acquire the assets of First Republic Bank (FRB), after regulators closed the bank on May 1. JPMorgan and several other banks had submitted bids to acquire the troubled bank’s assets after early efforts to rescue it failed.

As part of the purchase and assumption agreement with the FDIC, JPMorgan will take on all of FRB’s assets, including uninsured deposits. With $229.1 billion in assets and $103.9 billion in deposits, FRB was a significant acquisition for JPMorgan.

In addition to acquiring the bank’s assets, JPMorgan also entered into a loss-sharing agreement with the FDIC for residential and commercial loans acquired by FRB. Under the agreement, any losses and recoveries on the loans covered by the loss-share agreement will be shared between the FDIC and JPMorgan.

All depositors of FRB will become part of JPMorgan and will have access to their total deposits insured by the FDIC. The 84 locations of FRB in eight states will reopen as JPMorgan Chase, allowing customers to continue banking services at the current branch until they receive any change notification from JPMorgan.

The trouble began for FRB on April 26 when news of a government receivership surfaced. The bank’s shares dropped 20% in just a few hours following the announcement. The days following the announcement were even more volatile for the bank before regulators eventually closed the bank.

With FRB’s closure, it becomes the latest US bank to collapse in 2023, joining Silicon Valley Bank and Signature Bank.

This acquisition is a significant move for JPMorgan, as it expands its reach and strengthens its presence in the banking industry. JPMorgan has a history of making large-scale acquisitions, and this acquisition of FRB’s assets follows a pattern of growth through strategic acquisitions.

First Republic Bank had a reputation as a premier private bank for high-net-worth individuals and businesses. However, the bank had been struggling for some time due to a high level of non-performing loans and other financial difficulties. Despite efforts to rescue the bank, regulators determined that the best course of action was to close it and transfer its assets to another institution.

The loss-sharing agreement between JPMorgan and the FDIC is designed to mitigate any potential losses and ensure that depositors are protected. This agreement is a standard part of any acquisition involving a failed bank, and it ensures that the FDIC is able to recover as much of its costs as possible.

Overall, JPMorgan’s acquisition of First Republic Bank’s assets is a significant development in the banking industry. As JPMorgan continues to grow and expand its reach, this acquisition demonstrates its commitment to providing excellent banking services and support to customers across the United States.

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MicroStrategy Acquires Additional 1,045 Bitcoin

The American business intelligence company MicroStrategy has officially made public its most recent purchase, which consisted of an extra 1,045 Bitcoin (BTC) and cost around $29.3 million. On April 5, 2023, Michael Saylor, the executive chairman of MicroStrategy, put out a tweet notifying the followers of the firm of this specific piece of information.

As a result of this most recent purchase, MicroStrategy now holds a total of 140,000 Bitcoins, raising the total number of Bitcoins that the business possesses to a total of 240,000. At the time that these Bitcoins were bought, the price per Bitcoin averaged out to be $29,803, which resulted in an acquisition cost of around $4.17 billion. The constant investment in bitcoin as a reserve asset that MicroStrategy makes as part of its business strategy has enabled the firm to reach a major new benchmark. This reflects the company’s faith in Bitcoin and indicates the company’s excitement on the possibilities of the cryptocurrency over the longer term.

Given that MicroStrategy made its first buy of Bitcoin in August 2020 and has been continuously adding to its holdings ever since, one possible Bitcoin strategy that the company implements is dollar-cost averaging. This is due to the fact that MicroStrategy made its first purchase of Bitcoin in August 2020. The most recent purchase was made not long after the firm redeemed the money it had gotten from Silvergate. Around the end of March, the company also bought an additional 6,500 BTC. Recent events have seen both of these trades take place.

The decision made by MicroStrategy to invest in Bitcoin was unquestionably successful, as shown by the fact that the entire value of the company’s assets has now surpassed $12.6 billion. This implies that the organization took a strategic decision that was beneficial to its business. This larger trend is seeing a growing number of financial institutions adopt a strategy that is defined as “investing in cryptocurrency as a hedge against inflation and a store of value.” One example of this movement is the company’s attitude to Bitcoin, which is representative of this larger trend.

The fact that MicroStrategy continues to invest in Bitcoin demonstrates a high level of confidence in the potential that the cryptocurrency has in the long term, despite the fact that a number of Bitcoin skeptics have expressed worries about the cryptocurrency’s volatility. It is going to be quite exciting to see how the market for cryptocurrencies develops over the next several years because it is going to be extremely intriguing. MicroStrategy has set a precedent, and it is quite probable that other corporations would invest in Bitcoin in a similar manner to what it has done.

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First Citizens Bank to Acquire Silicon Valley Bank Deposits and Loans

First Citizens Bank, a North Carolina-based bank, is set to acquire Silicon Valley Bank’s deposits and loans following the latter’s collapse in March 2023. The Federal Deposit and Insurance Corporation (FDIC) approved the purchase and assumption agreement, which includes the acquisition of $72 billion of Silicon Valley Bridge Bank, National Association’s assets at a discount of $16.5 billion. The agreement also stipulates that 17 former branches of Silicon Valley Bank will operate as First Citizens Bank and Trust Company starting on March 27.

As part of the agreement, all Silicon Valley Bank depositors will automatically become depositors of First Citizens Bank. The FDIC will keep approximately $90 billion in securities and other assets in receivership for disposition. In addition, the FDIC will receive equity appreciation rights in First Citizens BancShares, Inc. common stock worth up to $500 million.

First Citizens Bank is now the 30th largest commercial bank in the US, with $167 billion in total assets and $119 billion in deposits as of March 10. The acquisition of Silicon Valley Bank’s deposits and loans is expected to boost the bank’s assets and expand its operations in California’s tech hub.

Silicon Valley Bank collapsed on March 10 after rumors of a severe liquidity crisis sparked a bank run. The FDIC was then appointed as the receiver of the failed bank and attempted to auction off the fallen bank’s assets. The process included two separate auctions for Silicon Valley Bank’s assets: one for its traditional deposits unit and the other for its private bank, which catered to high-net-worth individuals and was housed within its retail operations.

Several firms were reportedly planning or had submitted bids for Silicon Valley Bank. First Citizens Bank was one of them, with reports suggesting it had been planning a bid as early as March 18. Three days later, the bank reportedly submitted a bid for all of Silicon Valley Bank. A First Citizens spokesperson declined to comment on “market rumors or speculation” at the time. Valley National Bancorp was also understood to have submitted a bid for the collapsed bank.

Meanwhile, Citizens Financial Group, another US regional bank, was reportedly preparing to submit an offer for Silicon Valley Bank’s private banking arm. The bank’s collapse highlights the challenges faced by banks in the tech industry and the importance of maintaining adequate liquidity. The acquisition by First Citizens Bank underscores the bank’s confidence in the US banking system and its ability to weather crises.

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HSBC approves multi-million-pound bonuses for Silicon Valley Bank UK staff

On March 10, the activities of Silicon Valley Bank UK were terminated by order of the Bank of England (BoE), which said that the bank did not provide any “critical services” in support of the financial system. Once this event occurred, HSBC purchased the bank for the very cheap price of one pound. But, just a few days following the purchase, HSBC gave its approval for bonuses of several millions of pounds to be given to workers and top executives of Silicon Valley Bank UK.

It was emphasized by the sources that the bonuses would not have been paid out if Silicon Valley Bank UK had not been purchased in a financially sound manner. The exact amounts of the bonuses that were given to Erin Platts, CEO of Silicon Valley Bank UK, and her senior colleagues are unknown at this time; however, insiders have emphasized that the payments were a signal of HSBC’s confidence in the talent base at Silicon Valley Bank UK as well as an effort to retain key staff.

As a result of the BoE’s announcement that it intends to place Silicon Valley Bank UK into a “bank insolvency procedure,” the bank was required to cease making payments and accepting deposits. Prior to this, Silicon Valley Bank UK was instrumental in the growth and support of the innovative economy in the UK. In the meanwhile, the United States banking arm of Silicon Valley Bank has been taken over by the government. In the meantime, Silicon Valley Bank’s parent company, SVB Financial Group, has filed for protection under Chapter 11 bankruptcy while it searches for purchasers for its other assets.

SVB Group’s chief restructuring officer William Kosturos stated that the Chapter 11 process will allow the group to “preserve value” as it evaluates strategic alternatives for its prized businesses and assets. Kosturos stated that the group will be able to “preserve value” if it goes through with the process. Notwithstanding this, both SVB Capital and SVB Securities will continue to do business as usual, both under the direction of their own separate teams.

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Binance Confirms Equity Investment in Musk’s Acquisition, Dogecoin Stimulated over the Deal

Dogecoin has been trading up 35% since Monday following the news about Elon Musk has completed the deal to acquire Twitter’s social media giant. Doge soared its price by 10% up after the Tesla chief executive changed his Twitter bio to read “Chief of Twit” on Wednesday.

After a month of long battle between Musk and Twitter over the sale, Musk closed the deal on Friday. According to the CNBC report, Tesla CEO Elon Musk is now in charge of the social media and online news platform Twitter in a $44 billion deal. 

Musk also decided to lay off the major executives, including CEO Parag Agrawal and CFO Ned Segal. Based on the announcement, Twitter’s CEO Parag Agarwal and Chief Financial Officer Ned Segal have left the company’s headquarters in San Francisco. CNBC reporter David Faber shared a tweet that the executives “will not be returning.”

Musk expressed his excitement about closing Twitter’s deal on Thursday – he disclosed the reason for acquiring the social networking platform in a tweet: “Did it [bought Twitter] to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

Faber expects more changes are likely within Twitter as he believes that Musk will lay off some of the company’s employees, as that number could be up to “three-quarters of the staff.”

Meanwhile, Binance confirmed that the crypto exchange has invested in Musk’s Twitter deal, Bloomberg reported.

“We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology,” Binance said in a statement, citing Changpeng “CZ” Zhao, its billionaire co-founder.

The report citing a Binance spokesperson, said Friday “our initial commitment remains the same”, and flagged the possibility of growing the partnership.

In May, Binance said it had committed $500 million for the takeover as part of its strategy to bring social media and news sites into the world of web3. After one month, the crypto exchange has announced to raise $500 million crypto funds to enhance blockchain & Web3 adoption.

Crypto market is also stimulate by Musk’s deal. Dogecoin has been in a steady decline for several months, trading low on the market. But that changed on Monday this week when the value of the meme coin suddenly turned up, recovering 25% on the week and surging 16% on Wednesday.  The price of doge has risen by 35% since the beginning of this week. At the time of writing, the price is down by 2.64% and now trading at $0.0745, according to CoinMarketCap.

Source: TradingView

Doge’s surge is far from a normal revival – it is linked to Elon Musk’s takeover of Twitter, as the deadline for his purchase of the company approaches on Friday.

Musk has been the most visible and vocal supporter of the meme cryptocurrency, often influencing its price with his tweets and even endorsed it as a payment option on his Tesla merchandise store.

Image source: Shutterstock

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Binance Confirms Equity Investment in Musk’s Acquisition, Dogecoin Stimulated over the Deal

Dogecoin has been trading up 35% since Monday following the news about Elon Musk has completed the deal to acquire Twitter’s social media giant. Doge soared its price by 10% up after the Tesla chief executive changed his Twitter bio to read “Chief of Twit” on Wednesday.

According to the CNBC report, Tesla CEO Elon Musk is now in charge of the social media and online news platform Twitter in a $44 billion deal. 

After a month of long battle between Musk and Twitter over the sale, Musk closed the deal on Friday. 

Musk also decided to lay off the major executives, including CEO Parag Agrawal and CFO Ned Segal. Based on the announcement, Twitter’s CEO Parag Agarwal and Chief Financial Officer Ned Segal have left the company’s headquarters in San Francisco. CNBC reporter David Faber shared a tweet that the executives “will not be returning.”

Musk expressed his excitement about closing Twitter’s deal on Thursday – he disclosed the reason for acquiring the social networking platform in a tweet: “Did it [bought Twitter] to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

Faber expects more changes are likely within Twitter as he believes that Musk will lay off some of the company’s employees, as that number could be up to “three-quarters of the staff.”

Meanwhile, Binance confirmed that the crypto exchange has invested in Musk’s Twitter deal, Bloomberg reported.

“We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology,” Binance said in a statement, citing Changpeng “CZ” Zhao, its billionaire co-founder.

The report citing a Binance spokesperson, said Friday “our initial commitment remains the same”, and flagged the possibility of growing the partnership.

In May, Binance said it had committed $500 million for the takeover as part of its strategy to bring social media and news sites into the world of web3. After one month, the crypto exchange has announced to raise $500 million crypto funds to enhance blockchain & Web3 adoption.

Crypto market is also stimulate by Musk’s deal. Dogecoin has been in a steady decline for several months, trading low on the market. But that changed on Monday this week when the value of the meme coin suddenly turned up, recovering 25% on the week and surging 16% on Wednesday.  The price of doge has risen by 35% since the beginning of this week. At the time of writing, the price is down by 2.64% and now trading at $0.0745, according to CoinMarketCap.

Source: TradingView

Doge’s surge is far from a normal revival – it is linked to Elon Musk’s takeover of Twitter, as the deadline for his purchase of the company approaches on Friday.

Musk has been the most visible and vocal supporter of the meme cryptocurrency, often influencing its price with his tweets and even endorsed it as a payment option on his Tesla merchandise store.

Image source: Shutterstock

Source

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Dogecoin Surges 35% after Elon Musk Finally Closes Twitter Acquisition Deal

Dogecoin has been trading up 35% since Monday following the news about Elon Musk has completed the deal to acquire Twitter social media giant. Doge soared its price 10% up after the Tesla chief executive changed his Twitter bio to read “Chief of Twit” on Wednesday.

According to the CNBC report, Tesla CEO Elon Musk is now in charge of the social media and online news platform Twitter in a $44 billion deal. 

After a month of long battle between Musk and Twitter over the sale, Musk closed the deal on Friday. 

Musk also decided to lay off the major executives, including CEO Parag Agrawal and CFO Ned Segal. Based on the announcement, Twitter’s CEO Parag Agarwal and Chief Financial Officer Ned Segal have left the company’s headquarters in San Francisco. CNBC reporter David Faber shared a tweet that the executives “will not be returning.”

Musk expressed his excitement about closing Twitter’s deal on Thursday – he disclosed the reason for acquiring the social networking platform in a tweet: “Did it [bought Twitter] to try to help humanity, whom I love. And I do so with humility, recognizing that failure in pursuing this goal, despite our best efforts, is a very real possibility.”

Faber expects more changes are likely within Twitter as he believes that Musk will lay off some of the company’s employees, as that number could be up to “three-quarters of the staff.”

In terms of crypto, Dogecoin has been in a steady decline for several months, trading low on the market. But that changed on Monday this week when the value of the meme coin suddenly turned up, recovering 25% on the week and surging 16% on Wednesday.  The price of doge has risen by 35% since the beginning of this week. At the time of writing, the price is down by 2.64% and now trading at $0.0745, according to CoinMarketCap.

Source: TradingView

Doge’s surge is far from a normal revival – it is linked to Elon Musk’s takeover of Twitter, as the deadline for his purchase of the company approaches on Friday.

Musk has been the most visible and vocal supporter of the meme cryptocurrency, often influencing its price with his tweets and even endorsed it as a payment option on his Tesla merchandise store.

Image source: Shutterstock

Source

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Bitcoin (BTC) $ 42,199.31 3.95%
Ethereum (ETH) $ 2,245.02 4.54%
Litecoin (LTC) $ 73.38 6.41%
Bitcoin Cash (BCH) $ 234.22 7.59%