Worldcoin expands, Saudi Aramco looks at digital assets and more
As traditional financial organizations connect services, portfolios and operations with digital assets, they are using the crypto winter to build and access a suitable market for crypto-related solutions.
Recent examples include Deutsche Bank's asset management arm DWS, which announced a new venture with Galaxy Digital and Flow Traders to jointly issue a euro-denominated stablecoin. In another development, oil major Saudi Aramco has signed an agreement with financial services firm SBI Holdings to potentially collaborate on digital assets and co-investment in SBI's digital asset portfolios.
Meanwhile, in the UK, pension fund M&G has invested $20 million in the country's first regulated Bitcoin (BTC) derivatives exchange, Global Futures and Options Holdings.
Crypto companies are poised to receive more interest from institutional investors in 2024. On December 13, the Iota Foundation announced a merger with Fireblocks to simulate real-world assets.
Check out this week's Crypto Biz to learn more about the ongoing change in the financial landscape, including S&P Global's stablecoins rating, WorldCoin's retail mergers, and Coinbase's international crypto spot trading.
Japan's SBI looks to Saudi Aramco to continue its Middle East expansion
Japanese financial services firm SBI Holdings and Saudi Arabia's state oil company Saudi Aramco are considering collaborating on digital asset investment and semiconductor manufacturing projects. The two signed a cooperation agreement that included establishing SBI Middle East as a base for regional operations in Riyadh. According to the document, SBI and Saudi Aramco intend to collaborate on digital assets and invest in their portfolios of digital assets. You can also identify Japanese digital assets startups that are interested in expanding into Saudi Arabia and starting semiconductor manufacturing projects in both countries.
S&P Global launches stablecoin rankings, GUSD, USDP, USDC rated high
S&P Global has launched a stablecoin review by analyzing eight stablecoins. Neither initially received the best rating, but two stablecoins were rated low in their ability to maintain fiat pegs. According to S&P Global, the rating assesses asset quality risks, mitigating factors, governance, legal and regulatory framework, redemption, liquidity, technology and third-party dependencies. Gemini Dollar (GUSD), Pax Dollar (USDP) and USD Coin (USDC) achieved 2 (Strong) ratings, the highest given. TrueUSD (TUSD) and Frax (FRAX) both received a rating of 5, with TrueUSD's insufficient information disclosure and Frax's continued reliance on algorithms.
Crypto may not care, but a very large one will matter. S&P releases stable coin ratings using a 1-5 score.
1 “Too Strong” None2 “Strong” USDC/USDP/GUSD3 “Enough” None4 “Limited” USDT/FDUSD/DAI5 “Weak” FRAX/TUSDhttps://t.co/D1VkXZ3NkG
— Occami Crypto (@OccamiCrypto) December 12, 2023
Worldcoin integrates with Shopify, Mercado Libre, Minecraft, Reddit and Telegram
WorldCoin has launched a new version of its World ID feature that allows users to verify their humanity on Shopify, Mercado Libre, Reddit and Telegram. Called “World ID 2.0,” the new feature allows developers to choose between different levels of authentication, from “lite” to “high.” The startup says the new features will help reduce losses to bots by not requiring users to provide their personal information to the apps they use. Other integrations for Worldcoin include Discord, Talent Protocol, and Okta's Auth0.
Coinbase introduces spot crypto trading to institutional investors outside the United States
Coinbase has announced the availability of crypto trading services for institutional investors in international currencies, allowing them to trade Bitcoin and Ether (ETH) with USD Coin. Over time, the exchange plans to extend its services to retail investors. Coinbase launched a global exchange in May, trading BTC and ETH perpetual futures for institutional investors, before offering similar services to retail traders in September. In the US, the exchange was sued in June by the US Securities and Exchange Commission for operating as an unregistered securities exchange, brokerage and clearing agency.
We are excited to announce the next phase of our Coinbase International Exchange expansion – the launch of non-US spot markets for our eligible customers designed to meet the unique needs and interests of our global user base. pic.twitter.com/JWEChT5BDa
— Coinbase ️ (@coinbase) December 13, 2023
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