US Banks to Commence Cryptocurrency Custody Services
The US Office of the Comptroller of the Currency (OCC) on Wednesday said banks in the country now have the right to provide cryptocurrency custodial services to cryptocurrency businesses.
In a letter issued to banks, the OCC said banks providing cryptocurrency custodial services to investors and businesses would have to take possession of cryptographic access keys to that unit of cryptocurrency.
This, it said was due to the difference in traditional banking methodology and the blockchain technology process.
“From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today,” said Acting Comptroller of the Currency Brian P. Brooks.
“This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”
This, move according to cryptocurrency experts, could open mainstream doors to the cryptocurrency world and further bolster the digital market outlook going forward.
One of the key industry players, Gemini, a regulated cryptocurrency exchange and Anchorage, agreed this could be good for the crypto industry.
“Today’s forward thinking announcement by the OCC validates Gemini’s long standing approach to custody. Gemini has built an institutional-grade custody solution to address the unique challenges of storing digital assets, that’s regulated by the NYDFS, and serves many institutional partners. A regulated solution provides the best option for the safety and security of clients’ crypto assets,” said Noah Perlman, Chief Compliance Officer, Gemini.
Bitcoin value rose above $9500 immediately the report was made public on Wednesday.
Paypal Commences Cryptocurrency Exchange Business
Paypal Expands Operation to Include Cryptocurrency Exchange
Paypal Holdings Inc, the world’s leading online payments solution, has finally expanded its operations to include cryptocurrency exchange following months of planning.
The company customers will now be able to buy, sell and hold bitcoin and other crptocurrencies using the PayPal digital payment wallets.
PayPal move was after the company’s competitor, Square, expanded into cryptocurrency exchange space in 2018 and developed a wallet that support bitcoin transactions through its Cash app. However, PayPal took it a notch higher by developing wallet that support Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
The decision to venture into cryptocurrency exchange space would boost the attractiveness of the unregulated digital asset and further push it to the mainstream given the fact that PayPal present has 346 million active users accounts with 26 million merchants.
“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” PayPal CEO Dan Schulman said in a statement. “Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange.”
Schulman says PayPal is “eager to work with central banks and regulators around the world” in supporting cryptocurrency.
Please note that PayPal users can only transact in cryptocurrency using fiat currency without ability to withdraw their purchased digital asset to a third party wallet or transfer from third party wallet into their PayPal powered wallet. Meaning PayPal users can only purchase PayPal cryptocurrencies and transact within the platform.
Ethereum Accounted for 96% DeFi Transactions in Q3 2020 as ETH Miner Fees Double Bitcoin’s
Ethereum Represents 96% of All DeFi Transactions in Q3 2020
According to the research data analyzed and published by Stock Apps, Ethereum’s transaction volume soared to $119.5 billion in Q3 2020. In comparison to the $10.2 billion volume posted in Q2 2020, that was a 1,200% increase.
Based on Coinmetrics’ data, Ethereum fees shot up during the same period, eclipsing Bitcoin’s fees for the first time on August 13, 2020. As of September 2020, ETH fees stood at $276 million, nearly double Bitcoin’s $146 million.
Ethereum Miners Made $113 Million from Fees in August, 38x Increase from April
The surge in transaction volume and fees on the Ethereum blockchain was linked to the recent Decentralized Finance (DeFi) hype. DApp Radar reveals that during the period, DeFi apps accounted for 99% of all transactions on the network.
The total DApp transaction volumes on all platforms in Q3 2020 reached $125 billion. There was an increase of $113 billion quarter-over-quarter (QoQ). Most of the activities took place on Ethereum, TRON and EOS. From the total value created, Ethereum accounted for 96%. With 1,956 apps, it was the top DApp blockchain during the period.
Coinmetrics’ data reveals that Ethereum transaction fees surged from $21.98 million on June 1, 2020 to $77.77 million on July 31, 2020. In August, Ethereum miners made $113 million from transaction fees according to Glassnode. That marked a 38x increase from the $3 million recorded in April and a 1.8x increase from the January 2018 all-time high. In September, miners for the first time earned more from fees ($172M) than they did from block rewards ($150M).
According to Glassnode, Ethereum miners made a record on September 1, earning $500,000 in one hour. Daily earnings on that day doubled to $16.5 million from $8.1 million the previous day. On September 2, they made a new record with the average hourly revenue surging to $800,000. They broke this record on September 17, reaching $938,000.
Is Bitcoin Set to Have a 2017-style Mini Boom This Year?
Bitcoin to Surge Like in 2017 this Year
Bitcoin’s price is set to “surge before the end of 2020” with investors keen not to “sleepwalk” through a 2017-style mini-boom, says the CEO of one of the world’s largest independent financial advisory and fintech organizations.
The prediction from Nigel Green, the deVere Group CEO and founder, which has $12bn under advisement, comes as Bitcoin – already one of the best-performing assets this year – appears to be on the brink of a bullish breakout.
In recent days, Square, which is owned by the billionaire founders of Twitter, has allocated 1% of its cash reserves to the cryptocurrency, whilst a former Goldman Sachs hedge fund chief says the price of Bitcoin will jump to $1m in five years.
Mr Green comments: “There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors.
“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.
“Like gold, Bitcoin can be expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.
“Investors will increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin, to help shield them from the potential issues in traditional markets”.
He continues: “There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.
“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”
The late 2017 bull run saw the Bitcoin price reach its all-time high of $20,089.
The deVere CEO concludes: “There’s been a notable ramping-up of interest in Bitcoin amongst investors since the end of summer. Indeed, it has been the best performing week for one of the year’s best-performing assets since July.
“I can see no reason why this upward trajectory will not continue between now and the end of the year.”
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