What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
In recent weeks, a large number of public institutions have submitted their mandatory financial reports to the US Securities and Exchange Commission (SEC). This contains information about a company’s balance sheet. Anyone who invested in the new spot Bitcoin ETFs in the first quarter and is subject to a reporting obligation had to disclose this. For example, the pension fund of the state of Wisconsin, the State of Wisconsin Investment Board (SWIB). The state investment authority invested around 0.1% of its USD 156 billion in assets in Bitcoin. This first allocation by a US pension fund could send a signal to other state investment funds.
In the first quarter since approval, a state pension fund, the State of Wisconsin Investment Board, already invested in Bitcoin ETFs.
Fund data on the blockchain
DTCC operates the world’s largest securities settlement system. To support the tokenization of traditional assets, the clearing house launched the “Smart NAV” pilot project. Using the Chainlink interoperability protocol CCIP, DTCC was able to provide the net asset value (NAV) of tokenized funds on various blockchains via a standardized procedure. Participants in the pilot project include the US financial giants BNY Mellon, Franklin Templeton, JP Morgan, State Street, Invesco and others.
DTCC’s Smart NAV pilot, in collaboration with Chainlink, tested the representation of market data on the blockchain.
Tether under fire again
Stablecoins are cryptocurrencies that are pegged to fiat currencies such as the US dollar. Issuers maintain this peg through various mechanisms. For analysts at Deutsche Bank, however, all currencies pegged to the US dollar are doomed to failure. Whether fiat currency with a fixed exchange rate, algorithmic stablecoin or centralized stablecoin with full deposit backing – Deutsche Bank lumps them all together. A “tether peso moment” – a reference to the collapse of the peso peg to the dollar in the 1990s – could have serious consequences for the crypto ecosystem, according to the bank.
In a report Deutsch Bank suggests that many of today’s dominant stablecoins like Tether (USDT) could collapse in the future.
Mining no longer profitable
The Bitcoin halving halved Bitcoin emissions for miners in one fell swoop. Although miners had time to prepare, many of the companies are currently mining at a loss. If transaction fees or the Bitcoin price do not rise for too long, miners have to liquidate assets on their balance sheet. In most cases, this means selling Bitcoin – a scenario that some refer to as miner capitulation.
A summarizing review of what has been happening at the crypto markets of the past week. A weekly report in cooperation with Kaiko.
AEOI for crypto holdings
In addition: the automatic exchange of information (AEOI) is an international standard for the prevention of tax evasion. Switzerland has also committed to its implementation. Crypto assets are now to become part of the reporting framework. This is intended to close gaps in the tax transparency system and ensure equal treatment with traditional assets and financial institutions.
An extension of the AEOI includes application to crypto assets, which the Federal Council aims to implement by January 2026.
