Things continued revving throughout the holidays, with moves indicating that the crypto conversation will generate interest in 2025. That said, the transition between administrations has created opportunities for innovation.
The headlines:
- Coinbase cleared the air on its wrapped Bitcoin position;
- Ripple’s stablecoin is live;
- BlackRock’s BUIDL will back the Frax USD stablecoin;
- Stanford University and Eliza Labs are studying the intersection between crypto and AI (read on to find out);
- Plus, Brooklyn’s crypto blues now have a new scam-bustin’ technique (more on that later);
- And much more!
As always, these are your decentralized diaries!
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Bitcoin is at $98k (as of 1/6/25)
The world’s top crypto token is in the green, as prices moved from a $91,317.13 low to a $98,956.91 high to settle at $98,209.92.
The altcoins are also ready for a break-out. Ethereum (ETH) is at $3,622.63, Solana (SOL) at $212.22, Avalanche (AVAX) at $42.30, Chainlink (LINK) at $23.18, Polkadot (DOT) at $7.59 and Uniswap (UNI) at $15.12.
Coinbase Identified Risks in its Wrapped Bitcoin Spat
Premier crypto exchange Coinbase publicly revealed its reasons for shutting down wrapped Bitcoin operations in its ecosystem. According to a December 17, 2024, filing in response to an ongoing lawsuit, Coinbase indicated that wBTC’s issuer, BiT Global, refused to answer queries about Justin Sun’s involvement with the token.
BiT Global has accused Coinbase of favoring its native cBTC competitor.
Ripple Launched its Stablecoin
XRP issuer Ripple pulled all the stops with the December 17, 2024, launch of its RLUSD stablecoin. Several exchanges, including CoinMENA, Uphold, and Archax, have listed and enabled access to the RLUSD.
Coinbase also added former governor of the Reserve Bank of India Raghuram Rajan and former first vice president and COO of the Federal Reserve Bank of Boston Kenneth Montgomery to its advisory board.
Volatility Shares Filed for a Solana Futures ETF
Despite the absence of a Solana ETF, instrument provider Volatility Shares put its best foot forward by applying for a futures ETF. The move will likely spur the approval of a spot ETF for the smart contract-enabled blockchain.
BlackRock’s BUIDL Now Backs the Frax USD Stablecoin
Industry interactions continued to depend on the approval of Securitize’s proposal to use BlackRock’s BUIDL as the backing for the Frax Finance USD stablecoin (FrxUSD). The approval followed a governance proposal, paving the way for a new stablecoin in the crypto sector.
Consequently, the FrxUSd will leverage assets held by BlackRock’s BUIDL.
Stanford University and Eliza Labs Have Unique Partnership
AI agent pioneer Eliza Labs partnered with Stanford University to launch the Future of Digital Currency Initiative (FDCI). This research program aims to study the interactions of AI agents with digital asset ecosystems.
The cooperation merges Stanford’s digital currency treasury trove with Eliza Labs’ autonomous AI agent expertise.
The project will (expectedly) kick off in the first quarter of 2025.
An Ohio Legislator Presented a Bitcoin Reserve Bill
Bitcoin continued to make waves at the state level, with draft reserve legislation at the Ohio Capitol. Ohio State Representative Derek Merrin (R) took matters into his own hands with HB 703, dubbed “the Ohio Bitcoin Reserve Act,” which aims to create a bitcoin reserve fund for the “Buckeye State.”
The bill also wants to authorize the state treasurer to invest its funds in Bitcoin.
Bybit Launched a Solution for HNWs
Crypto derivatives-focused Bybit took things head-on with the launch of a unique offering. According to a press release on December 18, 2024, Bybit launched a private wealth management solution for high-net-worth clients.
Additionally, Bybit’s Private Wealth Management (PWM) service caters to top executives. It includes several features, including personalized portfolio capabilities, world-class asset and infrastructure security, real-time insights and analytics, and more.
Brooklyn’s Police Crypto Unit Used a Scammer’s Email List in a $5 Million Seizure
In what may be a sign of things to come, the Virtual Currency Unit of Brooklyn, New York’s finest, turned the tables on bad actors that stole $5 million worth of crypto tokens nationwide. The fraudulent activities also brought in $1 million in Brooklyn.
Additionally, the bad guys targeted the Borough’s Russian community via “stocks-finance.com,” posing as financial advisors.
The crypto police team warned over 1,200 leads on the list about the fake platform.
Anchorage Digital Got its NYDFS License
Boutique crypto custodian Anchorage Digital expanded its footprint by securing a BitLicense for its subsidiary, Anchorage Digital NY, LLC. The move opens up the “Empire State” for Anchorage, enabling it to offer crypto services.
Furthermore, financial behemoths within the “Big Apple” also have access to Anchorage’s services.
Morgan Stanley May Add Crypto to E-Trade
Financial giant Morgan Stanley is (allegedly) considering adding crypto trading to its E-Trade platform. According to a January 2 The Information report, Morgan Stanley expects an improved regulatory environment with the incoming administration.
The retail trading sector could experience a boom should the wealth manager advance its plans.
Bitwise Filed for a Unique ETF
Innovation continued to drive the crypto adoption conversation, with a December 26, 2024, filing by Bitwise. The crypto asset manager applied for an ETF to track firms with significant Bitcoin holdings.
In addition, the “Bitwise Bitcoin Standard Corporations ETF” will invest in companies with a minimum treasury holding of 1,000 BTC.
Fed Chair Powell Denied Bitcoin Ownership Permissions
Bitcoin reserve optimists may have to wait for the wheels to turn in Washington, D.C., following comments by the Federal Reserve Chairman Jerome Powell. In a December 18, 2024, news conference, Powell iterated that the Fed is “not allowed to own bitcoin.”
Furthermore, he indicated that the central bank is not looking forward to any incoming legislation empowering it to create crypto reserves.
