Deutsche Bank and SC Ventures, Chainalysis, Bitmain on mining rigs, and more

Deutsche Bank and SC Ventures, Standard Chartered Bank’s innovation platform, have conducted the first stablecoin swap on the Universal Digital Payment Network (UDPN) platform, a report by The Block reveals. The UDPN is a blockchain-based platform that allows digital assets such as stablecoins, central bank digital currencies (CBDCs), and other tokens to be exchanged across different networks.

The swap was conducted between Deutsche Bank and SC Ventures on October 25, 2023, and involved the exchange of USDC, a stablecoin based on the Ethereum network pegged to the U.S. dollar, and XSGD, a stablecoin based on the Zilliqa network pegged to the Singapore dollar. The transaction was completed in less than a minute and demonstrated UDPN’s ability to facilitate cross-border payments with digital assets.

North America leads world in crypto usage, Chainalysis says

A new report from blockchain analytics firm Chainalysis reveals that North America is the region with the highest cryptocurrency adoption in the world. According to the report, North America accounted for 34% of global crypto transaction volume in the first half of 2021, followed by Western Europe with 29% and East Asia with 16%.

The report attributes the high crypto usage in North America to several factors, such as the presence of large institutional investors, a mature regulatory environment, and a growing interest in decentralized finance (DeFi) applications. The report also notes that North America has a higher share of professional traders than other regions, who tend to use more sophisticated trading platforms and strategies.

The report also highlights some of the trends and challenges that shape the crypto landscape in North America, such as the rise of stablecoins, the impact of environmental concerns on mining activities, and the need for more clarity and consistency in tax policies. The report concludes that North America is likely to remain a leader in crypto innovation and adoption, as more businesses and consumers embrace the benefits of digital assets.

Bitcoin spot ETF is years overdue, says SEC commissioner

In a recent interview with Bloomberg, SEC commissioner Hester Peirce expressed her frustration with the lack of progress on approving a Bitcoin spot exchange-traded fund (ETF) in the US. She said that she was “mystified” by the SEC’s reluctance to greenlight a Bitcoin spot ETF, which would track the price of the underlying asset rather than futures contracts.

“I’ve been pretty outspoken about my view that we’re well overdue on approving one of these products,” Peirce said. “I think that we have dug ourselves into a bit of a hole by setting standards for approval that are difficult to meet.”

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Peirce, who is known as “Crypto Mom” for her pro-crypto stance, argued that the SEC has been applying a higher level of scrutiny to Bitcoin spot ETFs than to other types of ETFs, such as those based on gold or oil. She said that the SEC should not impose its own views on the merits or risks of Bitcoin as an investment, but rather let investors decide for themselves.

“I think our role is to provide a clear set of rules and then let people make their own choices,” Peirce said. “And I think that by not approving a spot Bitcoin ETF, we’re really getting in the way of people being able to access something that they clearly want access to.”

Peirce also noted that the SEC’s delay on approving a Bitcoin spot ETF has created a regulatory arbitrage opportunity for other countries, such as Canada, which have already launched several Bitcoin ETFs. She said that this could undermine the US’s leadership role in the global financial system and innovation.

“I think it’s really important for us to embrace innovation and figure out how we can set clear rules and then let innovation flourish within those rules,” Peirce said. “And I think that by being so hesitant on something like a Bitcoin spot ETF, we’re sending a message that we’re not very open to innovation in this country.”

Peirce’s comments come as the SEC faces mounting pressure from the crypto industry and lawmakers to approve a Bitcoin spot ETF. Several applications are currently pending before the SEC, including one from VanEck, which has been repeatedly delayed and faces a final deadline of Nov. 14.

The SEC has already approved several Bitcoin futures ETFs, which have seen strong demand and trading volumes since their launch. However, many crypto experts and enthusiasts prefer a Bitcoin spot ETF, which they believe would be more efficient, transparent and cost-effective.

Bitmain plans to unveil mining rigs for Aleo Blockchain as Ex Israeli Military Rises $33M for Web3 Security

Bitmain, the world’s largest manufacturer of cryptocurrency mining hardware, has announced that it will launch a new line of mining rigs designed for the Aleo blockchain. Aleo is a privacy-focused platform that aims to enable decentralized applications with zero-knowledge proofs. Bitmain’s new mining rigs will support the Proof-of-Succinct-Work (PoSW) consensus algorithm that powers the Aleo network.

In a blog post, Bitmain said that it has been working closely with the Aleo team to optimize the performance and efficiency of its mining rigs for the PoSW algorithm. The company claimed that its new mining rigs will offer a significant advantage over existing solutions in terms of hash rate, power consumption, and profitability. Bitmain also said that it will provide technical support and customer service for its Aleo miners.

According to Bitmain, the Aleo blockchain has several features that make it attractive for miners and developers. First, it uses zero-knowledge proofs to ensure the privacy and security of transactions and smart contracts. Second, it employs a novel PoSW algorithm that rewards miners for both producing blocks and verifying proofs. Third, it supports a rich set of programming languages and tools for building scalable and interoperable applications.

Bitmain said that it will reveal more details about its Aleo mining rigs in the coming weeks, including the specifications, pricing, and availability. The company also invited interested parties to join its official Telegram group for the latest updates and announcements.

Ex-Israeli military alums raise $33 million for web3 security startup Blockaid

Blockaid, a web3 security startup founded by former Israeli military cybersecurity experts, has announced that it has raised $33 million in a Series A funding round led by Lightspeed Venture Partners. The company aims to provide a comprehensive solution for securing decentralized applications (dApps) and smart contracts on various blockchain platforms.

According to Blockaid’s website, the company leverages its team’s extensive experience in cyber warfare, intelligence and cryptography to offer a range of services, such as vulnerability assessment, code auditing, threat intelligence, incident response and forensics. Blockaid claims that it can help dApp developers and users protect their assets and data from malicious actors and prevent costly exploits and hacks.

Blockaid’s co-founder and CEO, Yossi Cohen, said in a press release that the web3 ecosystem is growing rapidly, but also faces significant security challenges. “We believe that web3 security requires a new approach that combines deep domain expertise, cutting-edge technology and proactive threat hunting. We are excited to partner with Lightspeed and other investors who share our vision and support our mission to make web3 safer and more trustworthy for everyone,” he said.

The company also revealed that it has already secured several high-profile clients, such as Polygon, Chainlink, Aave, Compound and Uniswap. Blockaid said that it plans to use the new funding to expand its team, scale its operations and develop new products and features.

Tal Morgenstern, partner at Lightspeed Venture Partners, said that he was impressed by Blockaid’s team and technology. “We have been following the web3 space closely and we believe that security is one of the key enablers for its mass adoption. Blockaid has a unique combination of talent, experience and vision that sets them apart from other players in the market. We are thrilled to join them on their journey to become the leading web3 security provider,” he said.