Month: February 2023

Coinbase Launches Layer 2 Network to Bring Crypto to the Masses

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• Coinbase (COIN) has launched Base, a layer 2 network built using Optimism’s OP Stack.
• Base will provide easy and secure access to Ethereum, Optimism, Solana and other blockchain ecosystems.
• Coinbase is joining Optimism as a core developer on the open-source OP Stack.

Coinbase Launches Layer 2 Blockchain Base

Coinbase (COIN) has launched Base, a layer 2 network built using Optimism’s OP Stack, providing easy and secure access to Ethereum, Optimism, Solana and other blockchain ecosystems. Coinbase is joining Optimism as a core developer on the open-source OP Stack.

Base Built on Optimism

Base is built using the latest version of the open-source OP Stack technology from Optimism. The protocol enables scalability and lower transaction costs while also offering secure access to multiple blockchains including Ethereum, Solana and others.

No Token Issuance Plans

Coinbase has no plans to issue a new network token for Base at this time. The goal is to provide an accessible onramp for developers looking to build decentralized applications or “dapps” onchain in an efficient manner without having to worry about token issuance or other matters related to running their own networks.

Testnet Launch Successful

The testnet of Base was started by Coinbase on Thursday with much success thus far. The launch brings a new wave of mainstream crypto adoption that could attract millions of new users in years ahead.

Secure Accessibility & Low Costs

The main focus of Base is accessibility and low cost transactions within the network while also offering security measures such as encrypted connections between users and nodes that are monitored 24/7 by Coinbase engineers for any malicious activity detected onchain or offchain. This allows developers to create dapps securely without worrying about security issues like double spending or 51% attacks that may occur when launching their own networks from scratch.

Binance Facing Fines for Past Conduct – WSJ

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• Binance, the world’s largest crypto exchange, is expecting to face fines for past regulatory violations.
• The U.S. Attorney’s Office has been investigating Binance since at least 2018.
• The Department of Justice has sent out subpoenas to trading firms requesting records of their dealings with Binance US.

Binance Bracing Itself For Fines

The world’s largest crypto exchange, Binance, has been under extra scrutiny since the collapse of rival exchange FTX and is now bracing itself for potential fines from US regulators to settle “past conduct” as reported by The Wall Street Journal.

Past Regulatory Violations

Chief Strategy Officer Patrick Hillmann told The WSJ that due to rapid growth in its early years, the exchange was not initially aware of all laws and regulations designed to prevent money laundering, sanctions evasion and corruption; therefore the company is expecting monetary penalties and is working with regulators to find a solution.

U.S Government Investigation

According to Reuters, the U.S government has been conducting an investigation into Binance since 2018; more recently sending out subpoenas requesting trading firms’ records of their dealings with Binance US as well as assessing whether evidence collected is sufficient enough to bring charges against several individuals including CEO Changpeng Zhao.

Possible Outcome & Timeline

Hillman believes that a likely outcome of this investigation could be a fine but said it was up to regulators to decide how severe or lenient they will be when issuing any penalties; he also declined to provide an estimate on size or timeline for when investigations might conclude.

Binance Taking Action

In light of this news, Binance remains committed towards providing a safe platform for its customers and bringing clarity regarding future regulations in order for them remain compliant going forward; Hillman also noted that although he did not know what actions DOJ would take against the firm he does expect consequences which could include fines or other remediation measures as part of an agreement between both parties.

: Robinhood Crypto Revenue Falls 24% to $39M in Q4

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• Robinhood reported $39 million in crypto trading revenue for Q4, a 24% decline from the previous quarter.
• The company also announced that its board had authorized the purchase of 55 million shares from a holding company for Sam Bankman-Fried and Gary Wang.
• Additionally, it canceled nearly $500 million of share-based compensation.

Robinhood Reports Crypto Revenue

Robinhood Markets (HOOD) reported $39 million in crypto trading revenue in the fourth quarter, down 24% from $51 million in the third quarter. The online trading broker overall missed both earnings and revenues estimates for the quarter.

Share Purchases & Compensation Cancellations

The company also said its board had authorized the company to pursue purchasing all or most of the 55 million shares that a holding company for former FTX execs Sam Bankman-Fried and Gary Wang bought in May 2022, and canceled nearly $500 million of its share-based compensation.

Rollout Of Web3 Wallet

The company noted that its Robinhood crypto wallet was rolled out to more than one million waitlisted users in 2022 after a beta version of its Polygon-based Web3 wallet was released in September.

Earnings Report Results

Overall for the fourth quarter, Robinhood posted an adjusted loss of 19 cents a share, ahead of the consensus analyst estimate of a loss of 15 cents a share, according to FactSet, on revenue of $380 million, below the analyst estimate of $396 million. Shares were up about 3% to $10.80 in after-hours trading on Wednesday.

Conclusion

Robinhood is scheduled to hold a call with analysts at 5 p.m. ET., providing further information about their financial results and future plans as they continue to grow their business offering with cryptocurrency products and services.

Archax Launches FCA-Regulated Crypto Custody Service, Rebuilds Trust in Sector

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• Archax, a UK-regulated cryptocurrency exchange, has launched a digital asset custody service with the approval of the Financial Conduct Authority (FCA).
• The offering uses technology from Swiss MPC shop Metaco and IBM Cloud.
• All assets held in custody will be entirely segregated and “solvency-remote” from the exchange, meaning they would not be included in any bankruptcy proceedings.

Archax Launches FCA-Regulated Custody Service

UK-regulated cryptocurrency exchange Archax has launched a digital asset custody service that is approved by regulators, as institutional crypto players are tightening up their operations to rebuild trust in the sector. The London-based Archax’s new offering is one of few offerings to have cleared the Financial Conduct Authority’s (FCA) high bar for firms dealing in digital assets.

Technology Partnerships

The Archax custody service appeals to banks and big institutional customers by being partnered with Swiss multi-party computation (MPC) tech provider Metaco. The service will also be rolled out using IBM Cloud, which is familiar to many of the world’s big banks.

Segregated Assets

All assets held in custody will be entirely segregated and “solvency-remote” from the exchange. This means that if the trading business did go bust, custodied assets would not be included in any bankruptcy proceedings.

Rebuilding Trust

Events such as FTX have highlighted the need for a more traditional approach when it comes to digital asset management and security. As an FCA-regulated custodian, Archax is permitted to hold cryptocurrencies, tokenized assets like funds or real estate, as well as traditional instruments and cash for its clients.

Conclusion

With its partnerships with Metaco and IBM Cloud, Archax is providing secure services that appeal to institutional investors who want trustworthiness within their operations when it comes to dealing with digital assets.