DBS Bank’s Digital Exchange to Start Trading Crypto Next Week; MicroStrategy Plans to Raise $400M to Buy More Bitcoin; Ray Dalio Softens Stance on BTC

Hey, ?? fellow Blockchain & Crypto aficionados! Hope you are all keeping well and safe during these unprecedented times. Enjoy best Weekly Digest thus far!

P.S. Before we dive into what happened in Blockchain & Crypto last week, check out my Connecting the Dots Newsletter, where you will get much more. Every Sunday????

Last week (7-12 December) was super hot in Blockchain & Cryptocurrency space this year. DBS, Singapore’s leading bank will launch a digital exchange next week; MicroStrategy continues being bullish on Bitcoin - it plans to raise $400M to buy more BTC; Ray Dalio, the founder of the world’s biggest hedge fund, softens his stand on Bitcoin, and more exciting developments and insights.

Without further ado, let us dive into what has happened in the financial technology sector this week. Let’s connect the dots.

DBS Bank’s Digital Exchange to Start Trading Crypto Next Week

DBS Bank of Singapore has officially announced the arrival of its digital assets exchange, with trading kicking off next week.

10% owned by Singapore’s SGX stock exchange, the DBS Digital exchange will also provide tokenization of securities and other assets, as well as bank-grade custody for digital assets.

The new exchange will facilitate spot exchanges from fiat currencies to cryptocurrencies and vice versa. 4 fiat currencies (SGD, USD, HKD, JPY) will be tradable against four of the most established cryptocurrencies covering 70%-80% of the market, namely Bitcoin, Ether, Bitcoin Cash, and XRP.

The security token offering part of the digital exchange will comprise a regulated platform for the issuance and trading of digital tokens backed by financial assets, such as shares in unlisted companies, bonds, and private equity funds.

The third part is custody, which is said to be bank and institutional grade. This will be air-gapped cold storage that leverages all the existing cybersecurity tech at the bank, according to the CEO.

It’s important to note DBS exchange will only be open to institutional clients and accredited investors.

THE TAKEAWAY

This is a strong and big move both for the region and the cryptocurrency industry as a whole. DBS is a solid and strong institution and it will inevitably inject lots of credibility. Who’s next? ??

MicroStrategy Plans to Raise $400M to Buy More Bitcoin

MicroStrategy said on Tuesday it plans to offer $400M worth of convertible bonds to raise funds to purchase more bitcoin. Proceeds from the private offering will be invested in the cryptocurrency "pending the identification of working capital needs," the company said.

US software firm MicroStrategy plans to raise $400 million through convertible bonds to buy more bitcoin, the company announced Tuesday. Proceeds from the debt sale will be invested in bitcoin if they aren't required for general corporate needs, the statement said.

The business-intelligence group first purchased $250 million worth of bitcoin in August, calling it a "reasonable hedge against inflation." At the time, its investment equated to 21,454 bitcoin.

MicroStrategy bought another $50 million of the crypto asset on December 4 at an average price of $19,427 per bitcoin. It now holds about 40,284 bitcoins, according to a filing with the Securities and Exchange Commission. 

MicroStrategy's stock has doubled since the start of November and is up around 121% year-to-date.

THE TAKEAWAY

This is one of the interesting and arguably biggest bets in Bitcoin we have seen so far. In other words, Microstrategy is literally becoming the Bitcoin ETF the SEC won’t allow. Or will it? ??

Bridgewater’s Ray Dalio Softens Stance on Bitcoin, Says It Has Place in Investors’ Portfolios

Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, has offered a more positive stance on Bitcoin than in comments that made headlines last month.

In a Reddit Ask Me Anything (AMA) on Tuesday, Dalio said he thought Bitcoin and other cryptocurrencies had “established themselves” over the last 10 years and were interesting “gold-like asset alternatives.”

The billionaire hedge-fund manager also noted that cryptocurrencies share similarities and differences to gold and various “limited-supply, mobile (unlike real estate) storeholds of wealth.”

Dalio's comments are a deviation from a month ago when he said there are three main problems with bitcoin and other cryptocurrencies: a lack of venues accepting digital assets as payment, price volatility, and the potential for governments to “outlaw” them.

THE TAKEAWAY

Ray Dalio is yet another big name who has changed his stance on Bitcoin. The founder of the world’s largest hedge funds sees Bitcoin as a possible asset in the investment portfolio. How do you see Bitcoin in your portfolio? ??

Extra Reads & Quick Bites for Curious Minds??:

• OCC’s Brian Brooks: Cryptocurrency Regulation Coming Soon 
• Citigroup Chief: CBDCs Are 'Inevitable' In The Future Of Currency
• Morgan Stanley Investment Management Chief Global Strategist Ruchir Sharma said bitcoin is already cutting into the U.S. dollar. "Today, most bitcoins are held as an investment, not used to pay bills, but that is changing," Sharma wrote in a Financial Times op-ed. He further argued that "bitcoin will gain" as its traditional competitors falter – even if the market bubble were to burst.
• Paxos is making moves to become a federally regulated bank in the U.S., according to a filing with the Office of the Comptroller of the Currency (OCC). The stablecoin issuer and crypto services firm is seeking to create the Paxos National Trust, which would operate out of New York and incorporate as one of the first crypto-native banks in the U.S. There are two paths to achieving bank status, the state-chartered route through Wyoming (that Kraken and Avanti used) or the federal route, which is also being pursued by BitPay and Anchorage.

Quote of the Week/??Food for Thought??

Make your own conclusions...

Graph of the Week

Now this one is quite illustrative, isn’t it? ??

Week in Brief

DBS Bank of Singapore has officially announced the arrival of its digital assets exchange, with trading kicking off next week.

MicroStrategy said on Tuesday it plans to offer $400M worth of convertible bonds to raise funds to purchase more bitcoin. Proceeds from the private offering will be invested in the cryptocurrency "pending the identification of working capital needs," the company said.

Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, has offered a more positive stance on Bitcoin than in comments that made headlines last month.

Continue reading by subscribing to Connecting the Dots Newsletter. You will receive fresh news about Blockchain & Cryptocurrency with hot takeaways every Sunday.

P.S. You might enjoy my earlier pieces as well:

?? These are the Best Performing Stocks of the Last Decade

?? Welcome to the Google Bank - Your Everyday Banking from Google, NOT a Bank.

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading the company's expansion into Europe, I'm an active member of the FinTech community and a TechFin evangelist.

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