Cryptocurrency Leaders Predict Rise in Mergers and Acquisitions

Two big players in the cryptocurrency space are doing what many companies do when organic growth slows — looking for smaller companies to buy, CNBC reported Tuesday, May 31.

Representatives of FTX and Ripple have expressed interest in acquiring other companies, the news network reported.

FTX is in “a very good capital and liquidity position” and will “watch the market for potential merger and acquisition opportunities,” CNBC said, citing FTX US President Brett Harrison. FTX is a cryptocurrency exchange.

Likely acquisition targets will either provide large pools of users or government licenses, Harrison reportedly said.

Separately, PYMNTS reported last week that the Federal Commodity Futures Trading Commission was reviewing a proposal by FTX to disintermediate derivatives trading on the platform.

CNBC quoted Ripple chief executive Brad Garlinghouse as saying the international payments company has “a very strong balance sheet. “Garlinghouse, according to CNBC, anticipates an increase in transactions in the sector.

“I think there will be a slight increase in mergers and acquisitions in the blockchain and crypto space. We haven’t seen that yet. But I think it’s likely in the future. And I definitely think as that unfolds we would consider things like that,” CNBC quoted Garlinghouse as saying.

“We’re now at a stage of growth where I think we’re more likely to be the buyer than the…seller,” he said.

Mercado Bitcoin enables trading of USD coins on the Stellar network

Mercado Bitcoin, which calls itself “the largest digital asset platform in Latin America”, as of today (May 31, 2022) allows its users to trade USD Coin on the Stellar network, announced Mercado Bitcoin.

USD Coin is a stablecoin pegged to the value of the US dollar.

Also Read: Fed Vice Chairman Brainard Makes the Case for a U.S. CBDC in Congress

Fees for USD Coin transactions on the Stellar Network will be “a fraction of a cent per transaction,” Mercado Bitcoin’s announcement states.

“USDC on Stellar offers Mercado Bitcoin customers both valuable interoperability and a truly borderless digital dollar,” said Denelle Dixon, CEO of Stellar Development Foundation, in a prepared statement. “As we pursue our mission to create equitable access to the global financial system, this integration is a mutually beneficial step forward. »

The deal, Dixon continued, could add “significant volume and liquidity to the Stellar network.”

Stellar said in the announcement that in the first quarter of 2022, the platform processed an average of $8.6 million in payments per day.

Stellar is open source. The Stellar Development Foundation is a non-profit organization that supports cryptocurrency.

PYMNTS reported that Stellar and Mercado Bitcoin are collaborating on a project exploring the creation of a digital currency for a Latin American country backed by a major entity such as the Central Bank of Brazil.

Read more: Mercado Bitcoin, Stellar Team on the CBDC project

PayPal Ventures revealed as investor in Aptos Labs

The mystery investor behind a $200 million capital injection into Aptos Labs is PayPal Ventures, according to Coindesk and other outlets covering the blockchain space.

Aptos, a Diem blockchain-focused company spun off from Meta, announced the funding two months ago, but did not name the party behind the $200 million investment. Diem was previously called “Libra”. ”

“We believe in the work the Aptos Labs team is doing to build a secure and scalable Layer 1 blockchain,” PayPal Ventures investment partner Amman Bhasin said in a prepared statement cited by Coinbase and others. media. “With the promise of improved reliability and security, faster transactions and lower fees, the Aptos blockchain is designed in a way that makes it both conducive to building new rails and attractive to enterprise customers. and crypto-native developers.”

Crypto data provider Stack said other investors in Aptos include: Andreessen Horowitz, Multicoin Capital, Katie Haun, Three Arrows Capital, ParaFi Capital and Coinbase Ventures.

Singapore and FinTechs launch tokenization project

The Monetary Authority of Singapore today (May 31, 2022) announced the launch of Project Guardian, an effort involving banks to explore the potential value of tokenization. Tokenization is the use of smart contracts on blockchains to determine the value of assets, including after changes in all or part of their ownership.

The government today announcement states, in part: “When applied in the context of financial services, these smart contracts enable decentralized finance, where financial transactions such as borrowing, lending, and trading activities can be performed autonomously on a blockchain without the need for intermediaries. ”

The announcement continues: “This could potentially improve the efficiency, accessibility and affordability of financial services, increase liquidity in financial markets and strengthen economic inclusion. ”

Project Guardian’s goals include assessing potential risks associated with the use of tokenized systems, according to the announcement. The project will also look at ways a tokenization-based system could interact with existing financial institutions. ”

Sopnendu Mohanty, director of financial technology at the Monetary Authority, said in a prepared statement that the agency “closely monitors innovations and growth in the digital asset ecosystem and works on potential opportunities and risks related to new technologies – for consumers, investors, and the financial system as a whole. …Learnings from Project Guardian will serve to inform political markets about the regulatory safeguards needed to harness the benefits of DeFi, while mitigating its risks.

Participating entities include DBS Bank Ltd., JP Morgan and Marketnode, which is a joint venture of SGX Group and Temasek.

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About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

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