Summary:
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Bitwise states that bitcoin futures market is far more impactful than previously expected
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Six international banks have stated their intention to launch stablecoins on IBM’s blockchain
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World’s largest financial institution released a whitepaper detailing seven best practices for security tokens
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Bitcoin unable to break $4000, could indicate a short-term bear market
This week has seen a variety of developments in crypto. From major institutional support for security tokens, to national bank stablecoins, it seems traditional finance is latching onto blockchain technologies. Let’s take a look at this week's top stories.
Bitwise, a crypto asset management company looking to have the first US Securities and Exchange Commission approved crypto ETF, has noted the bitcoin futures market is far more impactful than previously thought. The daily futures volume on the Chicago Mercantile Exchange and the Chicago Board Options Exchange of $85 million is now approaching the same trading volumes as the world's largest exchanges. Bitwise added that thanks to the futures market, Bitcoin now has a ‘dynamic, institutional quality two-sided market for the first time.’
Blockchain technology adoption is proceeding apace, with six international banks announcing their intent to launch stablecoins. Some of the known banks are Brazil’s Banco Bradesco, South Korean Bank Busan, and Filipino Rizal Commercial Banking Corporation. However, the coins will be running on IBM’s blockchain settlement network, launched in September of last year in collaboration with Stellar. This network, known as the Blockchain World Wire, removes intermediaries from traditional bank settlement systems, allowing efficient and immutable settlement between institutions.
IBM is far from the only mainstream company bringing fintech to traditional finance - DTCC, the world’s largest financial institution, has also helped by releasing a whitepaper outlining seven best practices for security tokens. DTCC, which conducts $1.7 quadrillion worth of securities annually, is looking to bring regulatory compliance and market stability to what some experts call the next step in crypto assets - securities. Such a move, if adopted by crypto exchanges and traders, has the potential to revolutionize credit settlements, and DTCC is putting its money where its mouth is by moving its $10 trillion Trade Information Warehouse to the Axcore blockchain this year.
The Bitcoin price is currently struggling to break $4,000 for the fourth straight day, closing at $3,970 on Sunday and trading currently at $3,955. This shows that bulls may be getting exhausted, as swings up to $4,190 have not been sustainable, and short-term trends are pointing towards a bear market. If BTC recovers to $4,055, then a short-term bull rally to $4,200 could be in the books, but whether or not that will happen remains to be seen.
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