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Paxos Gains Full Approval from Singapore Central Bank to Issue Stablecoins, Partners with DBS
Paxos’ Singapore entity, Paxos Digital Singapore Pte. LTD., has received approval from Singapore's central bank to offer digital payment token services as a major payments institution, allowing it to issue compliant stablecoins. The firm also announced a partnership with DBS Bank for cash management and custody of stablecoin reserves. Paxos is now authorized to issue stablecoins in the U.S., UAE, and Singapore. This approval signifies a significant step towards democratizing access to commerce and financial services, according to Paxos' head of strategy, Walter Hessert.
Circle Secures License to Issue USDC and EURC Under Europe's MiCA Regulatory Framework
Circle has secured a license to issue stablecoins USDC and EURC under Europe’s MiCA regulatory framework, becoming the first global stablecoin issuer to achieve compliance effective July 1, CEO Jeremy Allaire announced. This approval allows Circle to issue its stablecoins within the stringent regulatory framework established by the European Union. Circle's compliance follows its recent regulatory license acquisition in France, facilitating its MiCA-compliant stablecoin launch in Europe. MiCA, a comprehensive EU regulatory framework, aims for uniform crypto regulation, with full compliance required by the end of the year.
Ant Group Expands Registered Capital for Blockchain Units to $206.4 Million and $288.9 Million
Ant Digital Technologies, affiliated with Alibaba's Ant Group, has significantly increased the registered capital for its subsidiaries, Ant Blockchain Technology and Ant Chain (Shanghai) Digital Technology. Ant Blockchain Technology's capital rose to approximately $206.4 million, while Ant Chain (Shanghai) Digital Technology saw an increase to about $288.9 million. These expansions underscore Ant Group's commitment to bolstering its blockchain capabilities amidst China's focus on advancing domestic blockchain technology and digital economies.
Trading Desk Insights
BTC is gradually recovering from recent lows, though this recovery is accompanied by some choppy intraday price action. Upon reaching the 20-day moving average, BTC experienced a 3% pullback and is now attempting to stabilize within the $61,000 - $62,000 range. Historically, BTC has shown strong performance in July, with an average gain of over 11% in the past decade, and positive returns in 7 out of the last 10 years. Specifically, from 2019 to 2022, July returns have been impressive at approximately 27%, 20%, and 24%, respectively.
The Deribit BTC DVOL index, which measures expected price volatility over the next 30 days based on options data, has dropped to its lowest level since early February. This decline indicates a reduced demand for options, as market participants appear less inclined to panic or seek protective hedging strategies.
Following the April halving event, BTC prices have fallen by over 10%. Historically, BTC tends to experience a pullback shortly after a halving, followed by the beginning of a new uptrend a few months later, often surpassing previous record highs. Given the typically low trading volumes during the summer, this trend may persist for the next 30 to 60 days. We anticipate that a strong uptrend will begin by the end of Q3, potentially driving prices to new highs before 2025.
In the US BTC ETF market, a notable net inflow of $129.5 million was recorded, largely driven by Fidelity, marking the highest figure since early June after a period of significant outflows totaling over $900 million.
The meme coin sector continues to surge, with a 45% rise over the past three months, while other sectors have registered losses. Coins like BRETT, MOG, and POPCAT have outperformed their peers, reflecting typical bullish cycle behavior where investors rotate profits from larger coins like BTC into smaller, riskier tokens. The performance of meme coins remains closely tied to investor risk appetite and credit availability.
In corporate news, Worldcoin has bolstered its team with former executives from Google, X, and Apple to enhance privacy, security, and ID management following global pushback.
Additionally, Silvergate Bank has settled $63 million in charges with the SEC, the Federal Reserve, and the California Department of Financial Protection and Innovation, addressing allegations of failing to maintain a proper AML program and making misleading disclosures about its effectiveness.
In broader market news, equity futures were flat on Tuesday morning, suggesting that major averages might give back the gains seen in the previous session. Investors are contemplating whether the strong start to 2024 can be sustained in the second half of the year. While megacap tech stocks continue to perform well, some bearish analysts are concerned that poor market breadth could signal upcoming volatility. Federal Reserve Chair Jerome Powell is scheduled to speak on Tuesday at 9:30 a.m. ET at the European Central Bank Forum. Markets will close early on Wednesday and remain closed on Thursday for the Fourth of July holiday. On Friday, the June jobs report will provide further insight into the labor market.
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Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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