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- South Korea’s pension fund bags 280K Coinbase shares
South Korea’s pension fund bags 280K Coinbase shares
PLUS: Microsoft, Tencent and other tech giants join Decentralized Infura Network; New York MoMA now has tokenized artworks in its permanent collection
Manan Vora
November 16, 2023
Snapshot Web3
November 16, 2023
👨⚖️
Regulatory and Legal Updates
BlackRock, the world's largest asset manager, filed for a spot Ether exchange-traded fund (ETF) with the U.S. SEC on November 15. Named the iShares Ethereum Trust, this ETF aims to reflect Ether's price performance. This move follows BlackRock's registration of the iShares Ethereum Trust with Delaware's Division of Corporations and comes about six months after its application for a spot Bitcoin ETF. BlackRock's action is part of a broader trend among institutions showing increasing interest in the crypto market. Approval for such spot ETFs involves a two-step process with the SEC, and market experts anticipate a high chance of approval for a spot Bitcoin ETF by early 2024, with the spot ETH ETF potentially following.
Turkey is considering new regulations for its cryptocurrency market, focusing on licensing and taxation. The aim is to address the concerns of the Financial Action Task Force (FATF) and remove Turkey from its "grey list" of countries susceptible to financial crimes like money laundering. Turkey, ranking fourth globally in crypto transactions, is looking to implement specific licensing standards to prevent system abuse, including capital adequacy standards, digital security enhancements, custody services, and reserve verification. These efforts, supported by industry leaders, are crucial for compliance and improving Turkey's investment ratings and reputation.
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Innovation and Launches
The Philippines Bureau of the Treasury announced its plan to offer 10 billion pesos ($179 million) in one-year tokenized treasury bonds, a first for the country. These bonds, aimed at institutional buyers, will be issued by the state-owned Development Bank of the Philippines and the Land Bank of the Philippines, with a one-year validity and due in November 2024. This initiative reflects a broader trend in Asia and globally towards the tokenization of real-world assets using blockchain technology, with other countries like Hong Kong, Singapore, the United Arab Emirates, and Israel also exploring similar ventures.
Binance is set to launch a crypto exchange in Thailand in early 2024, through a joint venture with Gulf Energy Development, one of Thailand's largest natural gas companies. This venture, Gulf Binance, initially operating on an invitation-only basis, received the necessary licenses from Thailand's Ministry of Finance in May, enabling regulation by the Thai SEC. Gulf Energy, with a diverse investment portfolio in renewable energy and digital infrastructure, previously invested in Binance's U.S. arm. The partnership aims to leverage Gulf’s local network and showcase blockchain technology's potential in Thailand.
Kazakhstan has officially launched its central bank digital currency (CBDC), the digital tenge. This initiative, spearheaded by the National Payment Corporation (NPC), was demonstrated by NPC chairman Binur Zhalenov, who made the first transaction using a debit card linked to the CBDC account. The digital tenge, which can be integrated with Visa and Mastercard, is set for significant development in 2024, focusing on offline payments. By 2025, the NPC plans to extend the digital tenge's use in cross-border trade. The development of the digital tenge, which began in February 2023, is part of Kazakhstan's broader strategy to regulate and innovate within the crypto and financial technology sectors.
♾️
NFT and Metaverse
New York's Museum of Modern Art (MoMA) has incorporated artificial intelligence (AI) and non-fungible token (NFT) artworks into its permanent collection for the first time. These include Refik Anadol’s “Unsupervised — Machine Hallucinations” (2022) and an edition from Ian Cheng’s “3FACE” project. MoMA’s acquisition of these innovative works aligns with its history of pioneering art and technology exhibitions. The museum's digital art programming continues to expand, featuring upcoming works and exhibitions. Noted NFT collector Ryan Zurrer, along with the RFC Collection, facilitated the acquisition of these groundbreaking pieces, highlighting MoMA's commitment to embracing contemporary digital art trends.
G2A, a digital game vendor, has launched an NFT marketplace linked to Web3 games, expanding its gaming software offerings. Launched on November 15, the marketplace aims to introduce gamers to blockchain gaming and NFTs from G2A's partnered games. G2A's CEO, Bartosz Skwarczek, noted the growing engagement of gamers with the blockchain gaming sector and the launch of G2A Geekverse, an online space for Web3 game fans. This development is part of a broader trend in the gaming industry towards embracing Web3 gaming, as seen with other major players like Google Play and Epic Games Store also integrating NFT and blockchain-based games into their platforms.
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Scams and Hacks
Solana Labs has refuted claims by blockchain security firm CertiK regarding a security vulnerability in its crypto-enabled Saga phone. CertiK alleged that the Saga phone had a critical "bootloader unlock" vulnerability, potentially allowing attackers with physical access to install custom firmware with a root backdoor, compromising sensitive data including cryptocurrency private keys. However, Solana Labs dismissed these claims as inaccurate, stating that unlocking the bootloader and installing custom firmware requires multiple steps, including unlocking the device with the user's passcode or fingerprint. They also noted that Android devices, including the Saga phone, warn users about the implications of unlocking the bootloader, which would wipe the device and private keys if ignored. The Solana Saga phone, launched in April 2022, features a Web3-native decentralized application store.
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Miscellaneous
Microsoft, Tencent, and 16 other tech giants have partnered with ConsenSys to decentralize the Infura network, a critical access point for Ethereum and the decentralized finance (DeFi) sector. The Decentralized Infura Network (DIN), launching in Q4, aims to solve Infura's centralization issues, thus reducing the risk of outages for Web3 services. DIN will provide failover support for the Ethereum and Polygon networks, enhancing reliability and censorship resistance. This move is essential for long-term censorship resistance, as centralized providers are vulnerable to shutdowns. The current federated phase of DIN includes 18 partners, with plans for a more decentralized governance structure in the future.
The National Pension Service (NPS) of South Korea, one of the world's largest pension funds, has invested in Coinbase by acquiring approximately 282,673 shares in Q3 of 2023. This investment, initially valued at about $19.9 million, has grown to be worth $27.7 million, marking a 39% increase in value. This purchase signifies the first time NPS has invested in Coinbase stock, aligning with its policy of avoiding direct investment in volatile cryptocurrencies like Bitcoin. Despite previous criticisms from the National Assembly for investing in crypto-related businesses, NPS maintains its focus solely on the exchange, not the cryptocurrencies themselves. Coinbase's stock itself has experienced significant growth in 2023, with its value increasing by nearly 170% since the beginning of the year.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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