Y Combinator (YC), the Silicon Valley incubator, has listed stablecoin finance as a category in its new and updated list of areas it would like to deploy funds in.
OpenAI and Microsoft partner with Humane on wearable AI pin
AI startup Humane launched the wearable virtual assistant AI Pin that is embedded with technology from OpenAI and cloud computing services from Microsoft.
Crypto Hubs 2023: Where to Live Freely and Work Smart
With shifting regulatory regimes worldwide, crypto is on the move to find the best locales to put down roots, get licensed, register or just be. Crypto Hubs 2023, our ranking of the top 15 global crypto hubs, is a good place to start.
Silicon Valley: The Mecca for Venture Capital May Be Cooling on Crypto
The storied birthplace of the U.S. tech industry is dripping with talent and money. But crypto founders who live in the No. 8 spot on CoinDesk’s Crypto Hubs 2023 list say that Web3 is losing ground to artificial intelligence in the race to capture the Valley’s wallets and minds.
Circle and Sequoia were among top depositors at Silicon Valley Bank: Report
According to a Bloomberg report, other major depositors included Silicon Valley Bank, SVB Financial Group, biotechnology research company Altos Labs and China-based firm Kanzhun.
Biden to discuss dangers of AI in San Francisco meeting with experts
The U.S. president will meet with AI experts to discuss safety, policy and opportunities while he’s in San Francisco.
GAO cites exposure to digital assets in exploring collapse of Signature Bank
Michael Clements said the GAO had reviewed “large deposits from the digital asset space” in considering whether crypto had contributed to Signature’s failure.
Coinbase Might Soon Offer Banking-Like Services, Claims Ripple Board Member
The second-largest crypto exchange, Coinbase, is still progressing despite the US Securities and Exchange Commission’s enforcement action against it.
As such, a Ripple board member and an angel investor at PartyDAO, Asheesh Birla, predict it might offer crypto-enabled banking services.
Coinbase Is Transitioning From Crypto Exchange
In a Twitter thread, Birla recounted Coinbase’s mission, vision, and value proposition in the crypto industry, concluding that it might offer banking-like services backed by crypto.
According to the angel investor, the second largest exchange aims at building the crypto economy. This financial system will be accessible, efficient, transparent, powered by crypto, and fair to all users.
Birla further revealed that Coinbase’s 2023 quarter-one report showed that more of the exchange’s revenues came from deposits through interest income, custodial fees, and blockchain rewards. These revenue streams were classified under subscription and services.
Based on the quarterly report, Birla pointed out USDC deposits interest at $199 million, representing 18% of all Coinbase revenue.
Also, the exchange’s revenue gradually moves from consumer transactions to institutional consumers with high margins. Institutional trading revenue spiked by 67% from its 2022 Q4 amount.
The Ripple board member also noted that Coinbase now benefits from banking-like revenues not entirely dependent on the crypto market.
Banking Crisis Might Push Alternative Services
While concluding his post, Birla wondered if the time has come for consumers and institutions to turn to alternative services.
Notably, the recent banking crisis that led to the crash of Silvergate, Silicon Valley, and Signature Bank has reduced people’s trust in the traditional financial system.
Birla cited a recent Bloomberg Opinion piece by Matt Levine titled; “Nobody Trusts Banks Now,” asking if the timing is right for everyone to move on to alternatives.
In the piece, Levine described banking operations strategies in two ways. First, banks borrow short to lend long. Secondly, they borrow long to lend long. In the first strategy, banks use customers’ deposits subject to fast withdrawals to buy bonds and fund loans.
In the second strategy, banks use customers’ deposits which could also be withdrawn in the short-term, although not always to buy bonds and fund loans.
Considering these strategies purely dependent on customers’ deposits, Levine concluded that the banking business is inherently risky.
The reason is that if all depositors wake up to withdraw their money simultaneously, the banks will crash. Also, the banks are in trouble if the interest on customers’ deposits spikes.
That’s why research by Amit Seru disclosed that 200 more banks in the US face the same risks that crashed Silicon Valley Bank. As it stands now, only the future will tell if Birla’s musings will play out.
-Featured image from Pexels and chart from Tradingview
Africa: The next hub for Bitcoin, crypto adoption and venture capital?
Cointelegraph’s Elisha Owusu Akyaw shares how cryptocurrency is changing the financial landscape in Africa — and the opportunities and challenges that come with it.
In the aftermath of banks’ horrorshow: Law Decoded, March 13–20.
A week after the twinning collapse of Silicon Valley Bank (SVB) and Signature Bank, and the trouble at Credit Suisse, the dust is slowly settling down.
Rattled crypto industry could emerge stronger after USDC depeg
Did the depegging reveal stablecoins’ limitations, or was it a learning moment?
More 186 US banks well-positioned for collapse, SVB analysis reveals
Rising interest rates, which brought down the U.S. banking system’s market value of assets by $2 trillion, combined with a large share of uninsured deposits at some U.S. banks, threatens their stability.
Congress announces March 29 hearing into failures of SVB and Signature Bank
According to the House Financial Services Committee, it expects to hold multiple hearings on “getting to the bottom” of the banks’ failures.
This Crisis Will Define the Future of Money
The recent collapse of three high-profile banks – Silicon Valley Bank, Silvergate Bank and Signature Bank – has caused worrying outflows at hundreds of regional banks. Now, with the U.S. Federal Reserve creating a new backstop facility reportedly worth $2 trillion and Switzerland’s central bank bailing out Credit Suisse to the tune of $54 billion, the echoes of prior crisis in 2008 and 2013 are loud.
SVB Collapse Tanked NFT Trading Volumes, DappRadar Report Suggests
The day after Silicon Valley Bank collapsed, the number of active NFT traders dropped to its lowest point since November 2021.
Crypto Must Do Better to Be Banked, Say Industry Executives
The downfall of Silvergate, Signature and Silicon Valley banks have wounded digital assets. But crypto might one day work with big banks if the industry can mature, WAX CEO William Quigley and Maicon CEO Alex Liu suggested.
Silicon Valley Bank was the tip of a banking iceberg
Bank forecasting needs to become more than a “check-the-box” motion for regulatory compliance. It needs to be treated as a strategic decision-making tool.
Shareholders file lawsuit against Silicon Valley Bank, alleging fraud: Report
The class-action suit was filed against Silicon Valley Bank, CEO Greg Becker and chief financial officer Daniel Beck.
Binance CEO announces recovery funds conversion from BUSD to ‘native crypto’
Binance CEO says with recent “changes” in stablecoins and banks, the company’s recovery fund will be converted from BUSD to “native cryptos” such as BTC.
Breaking: Silicon Valley Bank UK arm acquired by HSBC for one pound
Banking giant HSBC announced that its U.K. arm is acquiring Silicon Valley Bank UK Limited (SVB UK) for one pound ($1.21).