Latest In Metaverse, Web3, and NFTs

Hello, and welcome back to my Latest in Metaverse, Web3 and NFTs newsletter.?

As usual, things have been moving fast in the industry that never sleeps… and here are some of the most recent developments, so without further ado, let’s get started!

The EU to expedite crypto regulations

The European Union (EU) administration has announced the need to accelerate the application of strict capital guidelines for banks that hold crypto assets in the forthcoming banking legislation if it is to comply with a globally-agreed deadline. The Basel Committee, which comprises regulators from major financial centres across the world, has set a deadline of January 2025 for banks to adopt capital requirements for holding crypto assets, which include Bitcoin and stablecoins.

It is noteworthy that banks have very little exposure to crypto assets and provide limited services in connection with them. However, banks have expressed their eagerness to trade crypto assets on behalf of their clients and to offer crypto-asset-related services.

The EU adheres to the Basel Committee's standards through its own law, and delaying the application of the new regulations could force banks to put off their entry into the cryptocurrency market. This is because separate EU regulations for trading crypto assets will come into effect in 2024.

The EU has two options to implement the Basel Committee's guidelines for crypto assets. The first option is to introduce a new law, while the second is to expand the banking law that is currently under development, in line with the recommendations of the European Parliament.

Blur vs OpenSea

The fledgling NFT marketplace Blur has accomplished a significant achievement by surpassing OpenSea in daily NFT trading volume. According to Nansen.ai, Blur's daily trade volume hit 6,602 ETH on Wednesday, February 15, which exceeded OpenSea's 5,649 ETH for the first time ever. Ethereum gas fees have also risen significantly due to heightened trade activity. Allegedly, Blur has now become the top "Gas guzzler" on Ethereum, surpassing UniSwap and Seaport.

At the moment, Blur is dominating the market with 20,428 ETH, whereas OpenSea is at 4,369 ETH, even though the trades have significantly reduced. Reportedly, Blur's current valuation is $1 billion, and the marketplace's daily trading volume increased almost 4 times after the launch of its native token, further establishing itself as a strong OpenSea competitor.?

Moreover, Blur released a blog post last week urging its users to stop selling their NFTs on OpenSea. The move was a response to OpenSea's earlier decision to prohibit NFT marketplaces that offer optional royalties.

Tokenization of Tesla and Apple Stocks On-Chain Takes Off

This week, a subsidiary of Berlin-based exchange Swarm is set to launch products that will allow retail and institutional investors to buy and borrow crypto against tokenized stocks and bond ETFs. These products are dubbed the "first tradable stocks and bonds on DeFi." They will enable buyers to purchase tokenized Apple and Tesla stock on Polygon, as well as a couple of tokenized bond ETFs representing U.S. treasuries.

For a long time, supporters of cryptocurrency have strived to incorporate the advantages of blockchain technology into traditional finance. Their ultimate goal is a financial structure that allows infinite fractionalization of securities and 24/7 trading without intermediaries. In 2022, Maker took a significant step forward, leading the charge by becoming the second-largest protocol in decentralized finance with over $6.5B in total value locked.

Last year, Maker's exposure to real-world assets increased from $17 million to $640 million, and it stated that it had begun transitioning away from exposure to crypto-backed lending. Real-world assets were one of the trends that Coinbase highlighted for 2023, and Ethereum founder Vitalik Buterin stated in December that it was among the most interesting developments in the cryptocurrency world.

Tokenized stocks and bonds have the potential to stabilize a volatile industry that is prone to boom and bust cycles, according to Swarm co-founders Timo Lehes and Philipp Pieper, who have embraced both DeFi and regulation.