Token spikes, SEC delays Bitcoin ETF options and more

US Treasurys posted on public blockchains surpass $1 billion as traditional financial firms continue to load securities on-chain amid prolonged high interest rates.

According to data compiled by 21.co and Dune Analytics, tokenized government securities spread across 17 products reached the $1 billion mark in assets on March 28. Most of the assets are based on the Ethereum, Polygon and Stellar networks.

“Growth in tokenized treasuries on public blockchains like Stellar makes good business sense for more asset owners to recognize blockchain technology,” Paul Wong, Product Director, CBDCs and Institutions at the Stellar Foundation, told Cointelegraph.

Investment firm Franklin Templeton, with more than $360.1 million in assets and a 33.6 percent market share, is among the companies that have secured assets through Franklin OnChain's US sovereign wealth fund. In the year Launched in 2021, the fund is based on the Polygon and Stellar blockchains.

By volume, tokenized securities represent the largest asset class on the Stellar network, with a total token market cap of more than $430 million at the end of March. “Blockchain is here to stay and it's in the future. We expect to see massive growth in tokenization over the next few years,” Wong said.

Moving away from tokenization markets, this week's crypto biz explores PayPal's stablecoin, Sushi Swap's move to “labs model” and the US Securities and Exchange Commission's (SEC) decision to delay options trading in bitcoin exchange-traded funds (ETFs). ).

SEC issues ruling on Bitwise, Grayscale Bitcoin ETF options

The US securities regulator has delayed its decision to allow the New York Stock Exchange to offer trading in spot Bitcoin (BTC) ETFs. According to the April 8 filing, the SEC's pushback will affect options trading on the Bitwise Bitcoin ETF, Grayscale Bitcoin Trust and any other trust that holds bitcoin on the NYSE. The securities regulator reached a similar conclusion for Nasdaq in March, which called for trading options on BlackRock's iShares Bitcoin Trust. The next deadline for the SEC to approve, deny or delay the proposed rule change on the NYSE is May 29.

PayPal stablecoin transactions fell 38% in March – Paxos

The distribution of PayPal USD (PYUSD), a stablecoin issued by PayPal and Paxos, fell by 39% in March, to a total of $188.5 million. Past months saw higher distributions, with $304 million in February and $301 million in January. In the year Despite its rapid growth in early 2024, doubling its market value in a month until mid-January, PUSD has since experienced a decline in circulation and market capitalization. PYUSD Treasurer in 2011 As of March 29, $14.9 million was held in US Treasury bonds. PYUSD's market capitalization has been declining since the end of February, falling from a peak of $312 million on February 26, according to CoinGecko data.

SushiSwap DAO supports the transition to the “Labs model” with early voting

SushiSwap has received a positive signal to move forward with plans to adopt a decentralized “labs model”. More than 62% of voters supported the move in a landmark vote that ended on April 10. The March 26 proposal describes the creation of Sushi Labs, which will be responsible for managing the administrative, technical and operational aspects of the sushi ecosystem. Tokens still decide on treasury allocations but are not involved in operational decisions. In addition, the new entity will receive 25 million Sushi Swap (SUSHI) tokens – worth approximately $39 million at current prices – and future airdrops from associated protocols and partners. The sushi community criticized the move.

Paradigm leads $225 million in funding for new “Solana killer” L1.

Crypto-focused venture capital firm Paradigm has led a $225 million round of funding for a new layer-1 blockchain network set to compete for market share with Solana and other top networks. Monad Labs aims to build a new layer-1 smart contract network that is faster and lower cost than Ethereum. According to a March 14 X post by Monad, the new L1 will be 100% compatible with the Ethereum Virtual Machine and capable of up to 10,000 transactions per second. Crypto VC funding turned positive during the first quarter of 2024, breaking a two-year slump.

Before you go: Smart contracts that can be turned on and off with a multi-sig strategy or administrative vote can cause problems, says Peter van Valkenburg of CoinCenter.

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