Appold Market Watch - Week 4 to 8 December 2023

Market Update & Industry News - Week ending 8 December 2023

🔷Global tech giant, IBM, revealed a cryptographic signing technology for handling digital assets in cold storage. IBM Hyper Protect Offline Signing Orchestrator allows the protection of high-value transactions which include disconnected network operations, time-based security, and electronic transaction approval by multiple users. The new OSO technology is currently being used by IBM’s partner, Ripple-owned custody firm Metaco. 

Appold View: Very encouraging that a technology giant is making moves into the “cold storage” digital asset custody arena. Cold storage options are becoming increasingly acute as regulators stipulate the requirement for custodians to keep a percentage of clients digital assets in cold storage. 

🔷 The largest bank in Brazil, Itau, announced a new cryptocurrency trading service for clients of its investment platform. The largest lender in Brazil enters the crypto market offering trading and its own custody of Bitcoin and Ether, with the potential to expand into other digital assets.

Appold View: This represents not just a strategic expansion for the company, but also a vote of confidence in the evolving digital asset landscape which should continue to grow in parallel with further regulatory certainty.

🔷 Robinhood, announced it was expanding into Europe with its general manager releasing a statement commenting on the European Union’s clarity on crypto regulation. Robinhood’s general manager also stated that it will anchor its international expansion in the EU. To encourage new users, Robinhood will pay a percentage of its customer’s trading volume back every month in Bitcoin. 

Appold View: This comes a week after it announced equities trading (no digital assets) in the UK, with the offering of 25 digital assets in Europe. Bloomberg reported Robinhood’s general manager stating that the revenue model is based on rebates from market-makers and exchanges. We are curious about this and will be speaking with our market-maker relationships for deeper insight.

🔷 The founder and ex-CEO of Binance, Changpeng Zhao, was ordered by a US Federal Judge to remain in the United States until sentencing over violation of the US Bank Secrecy Act. Changpeng is due to be sentenced in February 2024 and could face up to 18 months in prison. Last month the world’s largest crypto exchange paid $4.3b to settle a criminal case brought against them in the US. 

Appold view: Unsurprising based on the US not having an extradition agreement in place with the UAE, where his family are reported to be.