Binance has secured a landmark US$2B investment from MGX, an Abu Dhabi-based AI and technology investor. This monumental deal signifies the first institutional investment in Binance and stands as the largest crypto-related transaction ever funded in stablecoins. The recently announced Strategic Bitcoin Reserve aims to hold an estimated 200K BTC.
It is crucial to note that the U.S. government will not sell any Bitcoin deposited into this Reserve, providing a long-term stability to Bitcoin holders and the market at large. The Secretaries of the Treasury and Commerce are authorized to devise budget-neutral strategies for acquiring additional Bitcoin, which must not impose any incremental costs on American taxpayers.
In a significant step for traditional banking, the Office of the Comptroller of the Currency (OCC) has published guidance confirming the allowance of various activities related to crypto-asset custody, certain stablecoin operations, and independent node verification for national banks and federal savings associations without needing special approval.
On the trade front, Chinese tariffs on U.S. agricultural goods commenced on Monday as a direct response to the U.S. tariffs, which went into effect on China last week. Furthermore, 25% tariffs on imports from Mexico and Canada also took effect on Tuesday. In a related move, Ontario announced a 25% increase in electricity exports to the U.S.
Only to have it rescinded following President Trump's threat of a 50% tariff on Canada’s aluminum and steel. Additionally, the European Union plans to implement counter tariffs on €26B (US$28B) worth of U.S. goods starting next month, after the U.S. initiated 25% tariffs on all steel and aluminum imports.
In the world of cryptocurrencies, Deutsche Bank has compared Bitcoin to gold, suggesting that the U.S. Strategic Bitcoin Reserve could establish international standards. Video-sharing platform Rumble has also announced its commitment to purchase US$17M in Bitcoin as part of its treasury strategy. Moreover, Japanese publicly traded company Metaplanet has revealed the issuance of 2 billion yen (approximately US$12.7M) in zero-interest ordinary bonds, aimed at further investments in Bitcoin.
Economic indicators show a glimmer of optimism as U.S. President Donald Trump expressed positivity over recent inflation data, which came in at 2.8%, slightly under the anticipated 2.9% rate. Franklin Templeton has become the largest asset manager to file for a Solana ETF, indicating growing institutional interest in the cryptocurrency space.
On the technical side, Monad testnet has reached a significant milestone, with daily transactions surpassing 1.3 million, bringing the total to over 237 million transactions. Mercado Bitcoin is set to issue US$200M in tokenized assets in Latin America through the Polygon network. However, the proposal for SIMD-228, which aimed to alter Solana’s inflation model to a market-based emission mechanism, has failed to achieve the necessary supermajority quorum of 67%.
Transaction activity measured by a 7-day moving average on Base network has witnessed a 38% drop since January 6 but continues to lead as the premier layer 2 solution for Ethereum. StarkWare is enhancing its treasury by establishing a “Strategic Bitcoin Reserve,” with plans to increase its Bitcoin holdings as part of an initiative to unify Bitcoin and Ethereum.
After nearly two weeks of non-finalization, Holesky, one of Ethereum's two main testnet networks, has finally regained finality following the activation of Pectra. In the DeFi sector, PancakeSwap has burned over 9 million CAKE tokens, valued at US$15M, as part of efforts to manage their supply effectively.
A significant whale on Hyperliquid opened a US$200M ETH long position before lowering his margin below maintenance requirements, ultimately reaping US$1.8 million in profits, while the Hyperliquid Provider Vault (HLP) experienced a US$4M loss. Institutional tokenization firm Securitize has selected RedStone to serve as its primary data provider for existing products from Apollo, BlackRock, Hamilton Lane, and KKR.
Looking beyond, GnosisDAO has reached a quorum to invest an additional US$4.8M to further research and develop a private, uncensorable VPN, with aspirations to bring it to market within two years. Meanwhile, the Axelar Foundation has disclosed strategic token sales totaling US$30M to bolster the institutional tokenization of real-world assets (RWAs) via its interoperability protocol.
Anchorage Digital and Copper.co are set to provide digital asset custody services for Cantor Fitzgerald’s new global Bitcoin financing business, offering leverage to institutional investors who hold Bitcoin. Additionally, Blackrock’s tokenized fund, BUIDL, has surpassed US$1B in assets under management, making it the first institutional on-chain fund to reach this mark.
Lastly, Ripple has received regulatory approval to deliver crypto payments and services in Dubai, tapping into a burgeoning cross-border payments market valued at US$40B. Stay updated with our latest research publications that delve into various aspects of Bitcoin and the ever-evolving landscape of the crypto market.
To keep track of market fluctuations and emerging insights, follow us on Twitter @BinanceResearch. That’s a wrap on today’s crypto developments!.