Appold Market Watch - Week ending 14 March 2025
Market Update & Industry News - Week ending 14 March 2025
🔷 Abu Dhabi-based investment firm MGX invested $2 billion in Binance, marking the largest single investment in a digital asset company and Binance’s first institutional funding. The investment, made entirely in stablecoins (specific type undisclosed), secured MGX a minority stake in Binance. The partnership allegedly aims to advance AI-powered blockchain solutions, decentralised finance (DeFi), and tokenised digital assets.
Appold view: Binance certainly doesn’t need the money, so it’s likely that a larger strategic play is in the pipeline. While it’s unclear if this aligns with rumours of Trump’s family office looking to invest in Binance U.S. is unknown.
🔷 Digital asset exchange Kraken Digital Asset Exchange secured authorisation as an Electronic Money Institution (EMI) from the UK’s Financial Conduct Authority (FCA). This licence allows Kraken to issue electronic money and enhance fiat payment services, enabling UK users to deposit and withdraw funds more seamlessly. Kraken’s UK Managing Director stated that the approval helps combat debanking issues, ensuring more clients can access the platform.
Appold view: This strengthens Kraken’s presence in the UK, and securing this licence enhances fiat on- and off-ramps, reducing reliance on and the cost of using more expensive third-party payment partners.
🔷 The U.S. Securities and Exchange Commission (SEC) announced plans to abandon a proposal requiring certain digital asset firms to register as exchanges. Initially introduced in 2022, the proposal aimed to expand the definition of alternative trading systems to include digital asset firms, increasing regulatory oversight.
Appold view: This policy shift reflects growing industry and political pressure to change the SEC’s approach to digital asset regulation, allowing more clarity without stifling innovation.
🔷 European exchange operator Deutsche Börse announced that its post-trade services provider, Clearstream, will offer digital asset custody and settlement services for institutional clients starting in April 2025. This service will initially support Bitcoin and Ether. Deutsche Börse’s subsidiary, Crypto Finance, will act as a sub-custodian.
Appold view: The Clearstream brand itself is a trusted gateway for traditional finance and a credible partner for institutions. Although Crypto Finance is the “sub-custodian,” it’s unlikely that they are actually holding and safeguarding the assets. This is not uncommon in traditional finance, where custodians rely on sub-custodians for certain asset classes.
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