Binance App Introduces Self-Custody Wallet for Users
In a move aimed at enhancing user experience and functionality, Binance is urging users to utilize their app to create a self-custody wallet. The app serves as a platform for activities including spatial signing, lending, and borrowing.
The new wallet, known as Web3 Self-Custody Wallet, can be used to interact with the decentralized finance (DeFi) ecosystem. It appears to be in direct competition with TrustWallet, which was acquired by the exchange in 2018. The wallet also incorporates the use of Multi-Party Computation (MPC), which involves splitting the private key into three parts, with the wallet owner controlling two of them. This eliminates the need to store initial seed phrases.
Chairman of the Securities and Exchange Commission, Gensler, commented on the “wild west” nature of the industry.
Prior to this development, TWT had a positive week, partially attributed to Binance listing TWT futures contracts on its exchange, resulting in a surge in trading volume from approximately $80 million to $476 million on Monday.
HSBC Bank Plans to Launch Custody Service for Institutional Clients
HSBC Bank recently announced its plan to launch a custody service for digitized securities aimed at institutional clients. The bank clarified that the service will not involve cryptocurrencies or stablecoins. The launch is scheduled for 2024 and will complement HSBC’s existing platform for issuing digital assets and recent offerings of tokenized physical gold.
Tokenization, the process of issuing and trading real-world assets on blockchain networks, has emerged as a prominent way for major financial institutions to participate in the digital asset industry. Last year, the Boston Consulting Group estimated that tokenization could become a $16 trillion industry by 2030.
Grayscale’s Chainlink Investment Product (GLNK) Experiences Surge in Price
Grayscale’s investment product linked to the Chainlink token, called Grayscale Chainlink Trust (GLNK), closed at $39 on Monday compared to $21 on October 31st. Each share of GLNK holds only $12 worth of LINK, making it almost three times more valuable than the actual assets held.
Insurance premiums have reached as high as 150% on two separate occasions since the product’s launch in May of last year, with Monday’s premium being the highest ever recorded.
Chart of the Day
The chart shows the difference between ETH DVOL and BTC DVOL indices on Deribit. DVOL represents the options’ implied volatility for price fluctuations over a 30-day period.
The gap has narrowed from -11.6 to -0.6 since October 23rd, indicating a shift in focus from the market-leading Bitcoin to Ethereum and other alternative cryptocurrencies.
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