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Appold Market Watch Market update and Industry News - Week Ending 25 October 2024 🔷 The UK Financial Conduct Authority (FCA) released clarification on its digital asset registration process, focusing on strict standards to prevent money laundering and other financial crimes. The FCA maintained that setting high standards ensures safety and sustainable growth within the digital assets sector. The FCA encouraged firms to engage early through pre-application meetings and emphasised that each application is assessed individually. Appold view: The FCA’s approach is quite contentious. While traditional finance is subject to rigorous oversight with clear rules, the regulatory evolution in the digital asset sector does add extra layers of complexity, although many argue that the FCA approach is too excessive. This is not good for attracting business to the UK, something we are seeing acutely from our engagements where firms seek alternative jurisdictions which are equally tough but transparent and fairer in their approach. 🔷 Global payment processor, Stripe, announced it will acquire stablecoin infrastructure provider, Bridge. The $1.1bn acquisition aims to integrate Bridge’s technology into Stripe’s existing platform, enhancing its capabilities for blockchain and digital asset transactions. Appold view: While competitors like PayPal have announced their own stablecoins, which have gained some traction, Circle’s USDC remains a popular stablecoin with a $34bn market cap. Stripe announced the onboarding of USDC in 2022, and the Bridge deal should enable Stripe to offer more options, including Tether.io (USDT), which is by far the most active stablecoin with a market cap of around $120bn. 🔷 Digital asset exchange, Kraken Digital Asset Exchange, announced plans to launch its own blockchain for DeFi trading, borrowing, and lending early next year to expand its platform. This move aligns with Kraken’s greater strategy to innovate within the digital asset space. Appold view: This makes sense for strategic growth, particularly where DeFi has achieved substantial popularity with retail users, with increasing volumes and innovation in product offerings. However, without further regulatory clarity and institutional-grade market infrastructure, adoption among traditional financial institutions will likely remain cautious and incremental. 🔷 Ripple filed an appeal in the U.S. Court of Appeals for the Second Circuit, challenging an SEC ruling that deemed Ripple’s institutional sales of XRP to be securities transactions. The appeal contests the court’s application of the Howey test, which is used to assess if a transaction qualifies as an investment contract. Appold view: A complicated and ongoing case, the basis of which has affected many digital asset companies and issuers. #Marketwatch #Blockchain #Investments

Yesterday, Appold Partner Robert Gaskell was invited to speak at the UCL Future of Money Initiative’s ‘Digital Assets and the Future of Money: Opportunities and Challenges’ event. Speaking alongside fellow panellists Geoffrey Goodell, Thomas Giacomo, Stuart Dee, and Riccardo Tordera-Ricchi, the event proved to be a fascinating and wide-ranging discussion of the evolving landscape of digital assets and the future of digital currency infrastructures. Thank you to the UCL Future of Money Initiative for hosting the event. #blockchain #digitalassets #fintech

Appold Market Watch Market update and Industry News - Week Ending 18 October 2024 🔷 U.S. Bitcoin exchange-traded funds (ETFs) reportedly gained around $2bn of net inflows this week, with no negative flow days. BTC demand has pushed the price up by over 8% over the past five days, with cumulative assets managed by Bitcoin ETFs in the U.S. now standing at around $52 billion. Appold view: Institutional demand for BTC exposure in a traditional finance market structure continues to drive demand for these exchange-listed products, aided by the SEC approval of ETF options, along with general market sentiment for this asset class. 🔷 CoinDesk acquired CCData, the parent company of CryptoCompare, which provides digital asset data and analytics. The acquisition will expand CoinDesk’s services in market data, price indices, and research, enhancing its offerings for institutional clients. The deal will allow CoinDesk to leverage CCData’s expertise in providing real-time, high-quality digital asset information and analysis. Appold view: Congratulations to the CCData team on the acquisition. This is a good strategic move by Bullish-owned CoinDesk, expanding its exposure into institutional markets with a strong digital asset data and index solutions service. 🔷 The U.S. Securities and Exchange Commission (SEC) approved the listing of options on spot Bitcoin Exchange-Traded Funds (ETFs) on the NYSE. This decision allowed the trading of options tied to Bitcoin ETFs on the exchange, marking a regulatory milestone in the digital asset market Appold view: This move continues to raise Bitcoin’s profile and acceptance within institutional markets. It could help enhance ETF liquidity and tighter spreads and improve risk management by enabling better hedging opportunities. 🔷 Ripple launched a new stablecoin, RLUSD, backed by U.S. Dollar deposits, U.S. government bonds, and cash equivalents, challenging industry giants in the digital assets space. Appold view: There has been a lot of activity around blockchain protocols and financial institutions looking to create their own stablecoins. Tether.io (USDT) and Circle (USDC) continue to dominate the market with around 90% market share, and we don’t anticipate this changing any time soon. #Marketwatch #Blockchain #Investments

CCData acquired by Coindesk. Congratulations to Appold's client, CCData, on its acquisition by CoinDesk. The strategic move will strengthen CoinDesk's position as a provider of digital asset data and index solutions while expanding opportunities for CCData’s institutional client base. With the acquisition of the UK FCA-regulated benchmark administrator, Coindesk, which was acquired by digital asset exchange Bullish in November 2023, can scale its institutional data products business. Congratulations to Charles Hayter, Peter Seebohm and the rest of the team on this transaction. #CCData #CoinDesk #Blockchain #DigitalAssets #Appold https://lnkd.in/ePTx_TS3

DTCC launches industry sandbox to advance digital assets ecosystem. The Depository Trust & Clearing Corporation (DTCC) has announced the launch of its “Digital Launchpad”, an industry sandbox aimed at fostering collaboration among financial institutions, technology providers, and market participants to support the scalable adoption of digital assets. The introduction of the DTCC’s Digital Launchpad underscores the increasing focus on leveraging technology to drive operational efficiency and regulatory compliance with the objective of enhancing market infrastructure. These advancements align with the growing industry demand for blockchain technology implementation, especially in post-trade processing and the tokenisation of securities. At Appold, we closely monitor developments like this that reshape the financial landscape. The gradual merger of traditional market practices and blockchain infrastructure is not just about technology. Many blockchain technology companies have made the mistake of solely focusing on the technology under the assumption that it will be adopted if it is good enough. This is an incorrect assumption. It is about greater market infrastructure which incorporates compliance, governance, data and industry standards to ensure credibility and accountability. We look forward to working with our partners and clients to explore how this new development can support broader market objectives. #DigitalAssets #Blockchain #Tokenisation #DLT #FinancialServices https://lnkd.in/enh9kUyj

Appold Market Watch Market update and Industry News - Week Ending 11 October 2024 🔷 UK-regulated digital assets exchange Archax and EU-regulated digital securities distribution platform Assetera announced a strategic partnership to offer tokenised funds in the UK, EU, and EEA. The partnership is reported to bridge traditional finance and digital assets, starting with tokenised money-market funds from abrdn, which manages £506 billion in assets. Appold view: This is one of the first high-profile tokenised products from a major asset manager to launch in the UK and EU. The partnership has enabled Archax to leverage Assestera’s EU and EEA distribution channels to a wider investor base.  🔷 Digital assets exchange, Crypto.com, filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) following a legal notice from the regulator, which warned of potential enforcement action. The lawsuit comes amid increased scrutiny from the SEC on digital asset firms.  Appold view: This is most likely a preemptive strike following the Well’s notice from the regulator. The lawsuit against the SEC reportedly accuses the regulator of overstepping its authority by classifying most crypto assets as securities without proper legal procedures. The exchange may be aiming to stop what it views as unlawful regulatory overreach. 🔷 Collapsed digital assets exchange, FTX, received court approval for its liquidation plan, which allows the company to sell and redistribute its remaining assets to repay creditors. The decision is part of FTX's bankruptcy proceedings following its collapse in 2022. Appold view: The positive news is that it is estimated that 98% of capital will be recouped for creditors. The negative side is that the payment will most likely be in cash, not digital assets, meaning that creditors missed out on any asset appreciation. Nonetheless, good news for creditors as well the advisors and administrators who probably took huge fees from such a lucrative asset pool.  🔷 Piero Cipollone, a member of the European Central Bank (ECB) board, proposed creating a unified European ledger for digital assets using blockchain and other digital technologies to enhance the efficiency, transparency, and speed of financial transactions. Piero stated that the current banking system remains complex and costly. Appold view: A promising proposal by ECB board member Piero Cipollone, but there are still many hurdles to clear, including regulatory harmonisation across the EU and technological compatibility. Nonetheless, it is a good start and a step in the right direction for innovation. #Marketwatch #Blockchain #Investments

A productive first day at Zebu Live - London Web3 Conference engaging with a broad cross-section of industry leaders and stakeholders within the global blockchain ecosystem. Appold’s Robert Gaskell contributed to a robust discussion on the ETF panel, addressing the future, shape and impact of listed digital asset structured products on the wider market, in front of a full audience. Come and visit our booth for insightful discussions on market fundamentals and to explore how, together with our strategic partner Gravita, we can help align your strategies and objectives in this rapidly evolving sector. Pete Osborne Daniel Measor Andy Price Daniel Howarth Thomas Adcock Jillian Godsil, MA, BA (hons) #Blockchain #web #cryptoaudit #governance

We’ve had a great first day at Zebu Live - London Web3 Conference, the UK's largest Web3 event! 🌐 It was fantastic to meet so many people today, alongside our partner, Appold, and chat about how we can support you with our digital asset audit and tax services, with bespoke solutions tailored to meet your specific needs in this fast-evolving space. If you’re at the conference, come and talk to us tomorrow to learn about how we can support your journey and drive success in the digital asset landscape! 👋 Big day tomorrow for Zebu day 2, see you there. 🔥 #ZebuLive #DigitalAssets #Blockchain #DigitalFinance ------------------------- 👋 We’re Gravita, we’d love to talk 🙌 Build the future together 🌐 Tech enabled, full-service firm of accountants, with global reach See more from us: 🔔 Click the bell on our profile to be notified of our posts ➕ Make sure you’re following us 📝 Sign up to receive Gravita’s latest updates and webinar invites: https://lnkd.in/ecugk7WR

I am happy to support the Zebu Live - London Web3 Conference and speak on a panel on Thursday at 10:25 a.m. Come along if you want to learn about ETFs with our panellists. Tim Bevan, Michela Silvestri, Robert McCracken and Kevin Blackburne Appold also has a booth with our partner, Gravita. I am looking forward to meeting new people and also catching up with friends. Thanks to Harry Horsfall, Jolyon Layard Horsfall and the Flight3 team.

As official sponsors of the event, the Appold team is looking forward to attending Zebu Live - London Web3 Conference this Thursday and Friday with our strategic partner, Gravita. We’ll be present at our booth for both days, so come find us and reach out to hear about our joint digital asset advisory, audit and tax services, as well as learn more about what we do at Appold and the support we can offer to you and your business. #Blockchain #DigitalAssets #FinTech