What you need to know today in crypto and beyond Welcome to The Node. If you were forwarded this newsletter and would like to receive it, sign up here. Questions? Feedback? We'd love to hear from you! Simply reply to this email. –Daniel Kuhn CAN'T GET ENOUGH: MicroStrategy, the Michael Saylor-run business intelligence software firm, said Monday it completed a $500 million bond sale aimed at increasing its bitcoin investment. The company now owns so much bitcoin its SEC filings describe crypto as a key part of the firm's strategy.
BIG PLANS: Hedge funds see at least 7.2% of their assets in crypto by 2026, a survey by fund administrator Intertrust finds, with 17% expecting more than 10% of their investments in crypto, the FT reported Tuesday. The survey was sent out to funds with an asset value of over $7.2 billion.
TOKENS FOR SWITZERLAND: Sygnum, a Swiss bank, is launching custody and trading services in several DeFi tokens, including aave, aragon, curve, maker, synthetix, uniswap and 1inch network. Sygnum's clients include banks, hedge funds, asset managers and family offices, and the bank plans to offer them an expanded suite of yield-generating products.
GO POLYGON: An increasing number of DeFi users and developers have adopted layer 2 solution Polygon for their projects thanks to the program's comparably cheap transaction fees and fast block time. For example, SushiSwap has more than 15,000 unique active wallets on Polygon, over 10,000 more than there are on Ethereum, according to DappRadar.
COINBASE HIRES AGAIN: Coinbase has hired former deputy director of the SEC, Christian Sabella, to lead its legal work on capital markets, Coinbase's chief legal officer, Paul Grewal, announced on Monday. Coinbase has recently been on a recruiting drive, hiring people from some of the world's biggest companies, including Goldman Sachs.
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- Jill Carlson breaks down hype cycles and zero-knowledge proofs in this joint byline for Not Boring. "Zero-knowledge proofs are incredibly promising and exciting, but don't be surprised if expectations exceed reality in the short term."
- The IRS is paying close attention to Telegram chats, according to special agent Chris Janczewski, in a bid to crackdown on illicit BTC trading (Decrypt)
- Goldman Sachs plans to offer ether futures and options to its clients (The Block)
- Bitcoin remittances to El Salvador quadrupled in May from a year ago, but are still a fraction of the value of what is sent through traditional means (Reuters)
–H.B. & D.K.
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Get started with Concordium. Putting the news in perspective On the Road: A Lesson About Open Access and Bitcoin The word capital derives from the Latin caput, often translated as head – like El Capitan – but also denoting a source or a spring. Money, in some sense, is that from which society flows. It's the source of the roads we drive on, the tools we use, the bread we eat. But not everything has its price.
Last week I took a short sojourn up the Hudson River, a two-day trip by foot from my home in southern Westchester, N.Y., to the Graymoor monastery near the Highlands. Most of the trip was along a single highway, Route 9, which sways parallel to the famous river. Water, roads and bitcoin – of all things – happened to be on my mind.
I left the morning after bitcoin was established as legal tender in El Salvador, an event of historic proportions. It matters not just for the majority of Salvadorans who lack access to basic financial services, but also for the hard-capped digital currency's presence on the world stage. Thus begins one of the most exciting experiments in monetary policy. Could an open access payments layer revolutionize a struggling economy? What might bitcoin help build?
Bitcoin as legal tender in the U.S., especially in Westchester, wouldn't likely have much of an effect. Walking through one of the satellite counties of New York City, you witness some of the most extreme levels of wealth inequality in this country. Town from town. Person to person.
I walked by Lyndhurst, Jay Gould's historic estate, which happened to be closed to the public for the 145th Westminster Kennel Club Dog Show. I also woke up early on the second morning and walked through through the town of Ossining. I was alone with the migrant workers until the diners started opening.
Despite the disparity of wealth in Westchester, the banking and payments systems here are strong. I was never far from an ATM and every merchant I patronized took credit cards. Bitcoin, for me, for most in the global north, seems more like a speculative investment than a tool I desperately need.
Of course, these financial services are all privatized and reliant on centralized institutions. There could be a role for a disintermediated monetary network to exist side by side, as it will in El Salvador. It's like how toll roads operate within a network of mostly open streets.
Along Route 9, there are a number of mile markers first laid down in the 18th century. It was one of the postal routes that Founding Father Benjamin Franklin, the first postmaster general, designated as a way to transmit mail through the state-run service. Information, like money, could be seen as a form of capital. Another stream of development.
This open road, along with a few detours to be closer to the river or walk through New York's caged forests, brought me where I needed to be. For most of the journey, the Hudson River was never far from sight and its presence, its winds and tides could be felt in the air. This river, too, parts of which are a Superfund site, is another source that belongs to everyone. At least in theory, much of the land along its banks has been parceled out and paid for.
When I arrived at Graymoor, beat after about 40 miles of walking, I realized the privately run monastery was mostly closed. Religious services were canceled to the public due to the coronavirus pandemic, but a helpful nun helped me find the campground the monks keep up for the many travelers who pass along the nearby Appalachian Trail.
I laid down my sleeping bag, filled my water bottle at a spigot Graymoor maintains, and thought: Wouldn't it be better if everything was open to everyone?
–D.K. The cryptocurrency movement has never been so sprawling, reaching every corner of the planet. Crypto State by CoinDesk aims to connect with local communities to explore this movement of financial disruption and how it trickles down to every corner of the globe, from DeFi investment opportunities to alternative ways to transact and store wealth. We're making virtual stops with audiences in Nigeria, the Middle East and Southeast Asia this year. Register for the Crypto State virtual tour. ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. Copyright © 2021 CoinDesk, All rights reserved. 250 Park Avenue South New York, NY 10003, USA |
Bitcoin Is MicroStrategy's Strategy