[4-11 October 2024] DigitalX Weekly Crypto Update: Market Trends and Analysis

Weekly Price Action

*All figures below are in USD unless otherwise specified.

This week in crypto...

• National Bank of Bahrain rolls out its first Bitcoin investment fund
• Crypto adoption on track to hit 8% by 2025: Report
• Relm Insurance introduces BTC-denominated policy for Bitcoin miners
• Canary Capital files for a spot XRP exchange-traded fund with the SEC
• ECB official proposes unified European ledger for digital assets
• State Street works on tokenised bond and money market fund; no ‘current plans’ for stablecoin project
• PayPal, Ernst & Young settle first corporate payment via PYUSD stablecoin
• Banks to use Swift network for crypto transaction trials
• Brazil tests DeFi elements, compatibility in Drex CBDC pilot

1?? The Big Shift - The transition to Web3

The National Bank of Bahrain rolled out its first Bitcoin investment fund. In partnership with digital asset firm ARP Digital, this product is designed for institutional investors to gain exposure to Bitcoin - with 100% loss protection on the downside - based out of the Middle East’s Gulf Cooperation Council, including but not limited to: Bahrain, Qatar, Saudi Arabia and the UAE. According to Crypto.com’s COO Eric Anziani, Bahrain has created an “innovation-friendly crypto and fintech ecosystem… putting in place clear regulation that balances customer protection with commercialisation.”

2?? Store of value > Medium of exchange > Access to credit

State Street is developing tokenised bond and money market fund products but is not planning to launch a stablecoin in the near future. This decision is driven by the continued uncertainty surrounding digital asset regulation and intense competition from groups such as Circle. Instead, the focus is on creating tokenised collateral, enabling traders to use these assets as margin without needing to liquidate their holdings to post cash.