Binance Square

Today's latest DeFi news and insights

--

Grayscale Opens Sui Trust to Accredited Investors

Grayscale announced on X (formerly Twitter) that the Grayscale Sui Trust is now open to eligible accredited investors. The trust provides exposure to $SUI, a third-generation blockchain focused on addressing scalability and transaction costs.The trust utilizes the CoinDesk SUI Reference Rate to offer USD-denominated pricing based on real-time data from multiple component trading platforms, ensuring a representative spot price for $SUI. This marks another step in Grayscale’s efforts to provide institutional-grade access to emerging blockchain technologies. 
23
--

Bitcoin and Ethereum ETFs Expected to Lead U.S. Crypto Fund Launches in 2025

According to ShibDaily, Bloomberg ETF analyst Eric Balchunas has forecasted that Bitcoin and Ethereum exchange-traded funds (ETFs) will be the first U.S. crypto funds to launch in 2025, with additional funds to follow. On December 17, Balchunas shared an analysis from fellow ETF analyst James Seyffart, indicating a gradual introduction of cryptocurrency ETFs next year. The initial offerings are expected to be Bitcoin and Ethereum combination ETFs, followed by potential funds for Litecoin (LTC) and Hedera (HBAR).Balchunas and Seyffart suggest that Litecoin and Hedera ETFs could be approved sooner due to their favorable regulatory status. The U.S. Securities and Exchange Commission (SEC) has previously rejected several Solana ETFs, and Seyffart noted that Solana (SOL) and XRP ETFs might only be considered after the new SEC chair, appointed by President-elect Donald Trump, assumes office. The analysts believe that the SEC views LTC and HBAR more favorably, which could lead to their approval before larger market-cap assets like XRP and SOL. The SEC has classified XRP and SOL as securities, complicating the approval process for ETFs linked to these cryptocurrencies.Litecoin is seen as a strong candidate for ETF approval due to its classification as a Bitcoin fork, potentially qualifying it as a "commodity." Meanwhile, Hedera has not been categorized as a security by the SEC, possibly easing its path to ETF approval compared to other cryptocurrencies facing regulatory challenges. Despite the stronger approval prospects for LTC and HBAR, the analysts noted uncertainty regarding investor demand for these funds.Many in the crypto community are hopeful that the SEC, under the leadership of Paul Atkins, a nominee selected by President-elect Trump, may adopt a more favorable stance toward crypto assets. Trump has expressed that Atkins is a strong advocate for dynamic, innovative capital markets that meet investor needs and drive economic growth to bolster the U.S. economy. This article is intended for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
15
--

Deutsche Bank Tackles Regulatory Challenges with Blockchain Pilot Project

According to Odaily, Deutsche Bank AG is addressing regulatory challenges faced by financial institutions when using public blockchains, such as the risk of inadvertently transacting with criminals or sanctioned entities. In November, the bank launched a pilot project, Project Dama 2, which includes a Layer 2 platform. Boon-Hiong Chan, Deutsche Bank's Head of Industry Application Innovation for Asia-Pacific, stated in an interview that the bank's Layer 2 is integrated with Ethereum. Chan highlighted that public blockchains like Ethereum pose risks for regulated lenders, including uncertainty about who is validating transactions, whether transaction fees might be paid to sanctioned entities, and unforeseen hard fork threats. He noted that using two chains could potentially resolve many regulatory issues.Dama 2 is part of Singapore's Monetary Authority's "Project Guardian," involving 24 major financial institutions to test blockchain technology for asset tokenization. Supporters, including Deutsche Bank, view blockchain as an opportunity to address the compression of profit margins in financial services. However, there remains uncertainty about the extent to which banks should engage with the crypto ecosystem. The Dama 2 platform was developed in collaboration with cryptocurrency companies Memento Blockchain Pte. and Interop Labs, utilizing ZKsync technology. The bank aims to launch it as a minimum viable product next year, pending regulatory approval. According to Chan, its Layer 2 component allows banks to experiment with public blockchains freely, enabling them to curate a "more customized list of validators." Other benefits include potentially granting regulatory authorities—and only them—"super administrator rights," allowing them to review fund flows when necessary. Chan remarked, "You no longer rely on L1 for detailed transaction records."
5
--

Aave Co-Founder Criticizes Polygon Bridge Fund Proposal

According to Odaily, Aave co-founder Stani recently shared his views on a controversial proposal by the Polygon team regarding the investment of user funds from the Polygon bridge into decentralized finance (DeFi) without adequate risk protection. The proposal, developed with the assistance of undisclosed partners, has sparked dissatisfaction among Polygon users, who are concerned about the dual use of their funds, drawing parallels to fractional banking practices.Aave service providers, including risk providers, have been made aware of the proposal's implications, especially considering that 40% of Polygon's total value locked (TVL) is deposited in Aave. Aave's primary governance functions operate on Polygon, and the existing safety module provides insurance for the market on Polygon. This proposal significantly impacts Aave's risk management strategies. In response, Aave Chan Initiative (ACI) has initiated discussions to adjust risk parameters to safeguard user funds, taking into account past incidents like the Harmony bridge hack. Notable contributors, such as Andre Cronje, have also voiced similar concerns during governance discussions.The Polygon team has since retracted their proposal, attributing its failure to Aave's leadership and making inaccurate claims about Aave's infrastructure. Aave clarified that its infrastructure supports custom markets, as demonstrated by Lido's creation of one. Aave also supports immutable governance if needed and allows governance using one's own tokens under its friendly fork policy. If Polygon seeks better control over bridge asset investment strategies, it can easily establish a tailored market with additional security assurances, which other protocols lack. Aave is a flexible lending infrastructure and capital efficiency system designed to accommodate various use cases, with V4 expected to be an even more exciting product.The primary feedback from Polygon users is their dissatisfaction with the network's unauthorized use of their funds for high-risk investments. Aave's proactive discussions and actions to protect users align with the responsibilities of a decentralized autonomous organization (DAO). Characterizing Aave DAO's proposal as anti-competitive is inaccurate and diverts attention from the real issue: user safety. Aave DAO is not interested in inheriting third-party protocol risks without DAO consent, and ACI has taken necessary steps to define the future development of the Polygon market.Previously, the Aave community received a proposal from contributor team Aave Chan, led by founder Marc Zeller, to withdraw lending services from Polygon's PoS chain. This was in response to another proposal from the Polygon community to generate returns using over $1 billion in bridged assets. Zeller's proposal aims to phase out Aave's lending protocol to protect it from potential future security risks. He suggested adjusting risk parameters on Aave protocol versions 2 and 3 on the Polygon PoS chain to mitigate threats posed by bridged stablecoins and generate returns if Polygon's proposal is approved. His proposal recommends stringent measures to counter potential risks in the Aave lending market on the Polygon PoS chain, including setting a 0% loan-to-value ratio for all assets and increasing the reserve factor to 85%, effectively preventing further deposits or users from borrowing against collateral.
6
Εξερευνήστε τα τελευταία νέα για τα κρύπτο
⚡️ Συμμετέχετε στις πιο πρόσφατες συζητήσεις για τα κρύπτο
💬 Αλληλεπιδράστε με τους αγαπημένους σας δημιουργούς
👍 Απολαύστε περιεχόμενο που σας ενδιαφέρει
Διεύθυνση email/αριθμός τηλεφώνου
Σχετικός δημιουργός
LIVE
Binance News
@Binance_News
Χάρτης τοποθεσίας
Cookie Preferences
Όροι και Προϋπ. της πλατφόρμας