What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events, along with engaging background reports, concisely summarized in the weekly review.
Selected articles of the week:
This year, BlackRock and other US financial titans started offering investment products in the crypto sector. What is still missing in many cases, however, is education in the field. In a nine-page report, BlackRock summarizes the pillars of Bitcoin’s unique investment profile. According to the world’s largest asset manager, the main argument in favor of Bitcoin is its detachment from traditional risk and return drivers. This gives the cryptocurrency highly attractive potential. Especially in a world of expansive monetary policy, Bitcoin’s growth is almost predetermined.
In a nine-page report, BlackRock summarizes the pillars of Bitcoin’s unique investment profile.
Options on Bitcoin ETFs
Options are financial derivatives that give investors the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price before or on a specific expiration date. In the traditional financial world, options are often used for risk hedging, speculation or to leverage investment positions. Soon, these options may be traded on spot Bitcoin ETFs. After the SEC’s approval, the only thing missing now is the green light from the Options Clearing Corp. and the Commodity Futures Trading Commission (CFTC).
The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq Inc.’s application to list options…
LUKB offers deposits and withdrawals
Since March, three cryptocurrencies have been tradable at Luzerner Kantonalbank. A few months later, the bank launched a crypto investment plan, enabling investments in the cryptocurrencies Chainlink (LINK) and Polygon (MATIC) in addition to Bitcoin, Ethereum and USD Coin (USDC). And from October, LUKB will be the first traditional Swiss bank to offer the deposit and withdrawal of Bitcoin and Ethereum. This means that customers will soon be able to transfer the two largest cryptocurrencies from other wallets to their securities account at the cantonal bank.
As the first traditional Swiss bank, the Lucerne Cantonal Bank (LUKB) is launching the deposit and withdrawal of cryptocurrencies.
VISA bets on blockchain
The payment giant Visa is developing a new tokenization platform to help banks issue fiat-collateralized tokens. The Visa Tokenized Asset Platform (“VTAP”) will enable the trading of “Real World Assets” (RWAs) via smart contracts on the Ethereum blockchain. RWAs describe conventional assets such as securities and real estate. By putting them on the blockchain, institutions achieve significant efficiency gains and reach a broader audience. The Spanish bank BBVA is planning the first pilot on Visa’s platform as early as 2025.
The payment giant Visa is developing a new tokenization platform to support banks in issuing fiat-backed tokens.
Can Ethereum catch up?
In addition: Ethereum (ETH) is the largest cryptocurrency by market capitalization after Bitcoin. With a valuation of $282 billion, Ethereum has earned its place as a “world computer,” “ultrasound money,” and DeFi pioneer. But despite all these achievements, the price of the native cryptocurrency is lagging far behind. While Bitcoin has risen by a remarkable +57% year-to-date (YTD), Ethereum’s +17% has been disappointing. A look at the fundamental challenges for the smart contract platform.
Ethereum’s scalability and reduced fees have boosted Layer 2 networks but contributed to ETH’s underperformance.
