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Cryptocurrency

Crypto company, Paxos seeks approval to be a U.S National Bank

Stablecoin facilitator and digital asset services provider Paxos has recently filed an application for a National banking license.

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Paxos, PAX Gold: Crypto backed by gold but outperforms gold

Stablecoin facilitator and digital asset services provider, Paxos, has recently filed an application for a National banking license.

On approval, Paxos General Trust will be headquartered in the financial hub of the United States (New York), authorized to hold cryptos and execute the functions of a normal trust bank.

READ: List of Cryptos that could earn you big returns in 2021

Why the license matters

According to details seen on its web page, being granted such a license from the American authorities will enable it to expand the range of services offered by the fast-growing crypto company and also increase the geopolitical area to which it can offer services:

  • “Our mission is to modernize financial market infrastructure and enable the movement of any asset, any time, in a trustworthy way. A national Trust Bank charter would help us realize our goal by enabling us to serve customers across the country in the most efficient way.”

READ: Gokada founder’s Personal Assistant arrested for his murder

The report also revealed its present regulatory license, in functioning as a digital custodian and asset management company.

  • “Paxos has always embraced a regulation-first approach, and together with the NYDFS, we set the industry standard for regulation in digital asset custody and management.”

READ: Bitcoin on the rise, as traders shift focus to $12,000 price level

About NYDFS

The NYDFS ( New York State Department of Financial Services) has demonstrated time and again its commitment to making New York a hub of financial innovation.

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  • It was the first government agency to take clear and decisive action towards digital assets and has set a standard for all other regulators to follow.
  • It was the first regulator to approve the issuance of a digital asset (Paxos Standard, in 2018).
  • It was the first regulator to approve the issuance of an asset-backed token (PAX Gold, in 2019).
  • It continues to reinvent digital asset regulation, for example with the advent of the virtual currency green list.

READ: CBN debits banks N216.1 billion for CRR compliance

What you should know

Nairametrics some months back revealed why Paxo’s crypto asset was gaining traction: “Pax Gold as in recent times has seen the sudden surge in this gold-backed stablecoin, since the era of the COVID-19 pandemic, which appears to be driven by increased awareness of its unique features, which include access to gold without bullion fees or other storage costs.”

READ: Nigerian IT start-ups can generate $30 billion in 10 years – NITDA DG

  • PAX Gold (PAXG) is a crypto asset backed by Gold.
  • A PaxoGold digital coin is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s gold vaults.
  • Any entity or individual who owns PAX Gold owns the underlying physical gold held in custody by Paxos Trust Company.

READ: Crypto usage absolutely certain – Standard Chartered

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Cryptocurrency

Unknown Bitcoin whale moves $714 million, Bitcoin stays above $60,000 mark

The flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion.

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$700 million worth of Bitcoin moved by an unknown identity

Bitcoin whales are moving the vastly used treasury crypto in large amounts amid price volatility and bullish rush, as Bitcoin bulls regain control above the $60, 000 mark.

Data retrieved from BtcBlockBot an advanced crypto blockchain tracking and analytics firm, an anonymous cryptocurrency user revealed someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688.

Whale alert! 🐋 Someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688

The tracker further disclosed that the whale may have come from the world’s pioneer crypto exchange, Coinbase.

Nairametrics’ research has recently seen the surge in unknown crypto transactions involving Bitcoin, Ethereum, and other top crypto assets at levels not previously seen in the cryptoverse suggesting that more institutional players are getting into the game.

At the time of writing, the flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion. Bitcoin is down 0.04% for the day.

During bull trends in the cryptoverse, these large entities can take profit on their positions, especially if the futures market is overcrowded.

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Wealthy investors reducing their crypto exposure to rebalance their portfolios can cause high price swings in the market, especially when accompanied by cascading liquidations.

However, recent data suggests otherwise as data retrieved from Glassnode points at entities holding more onto the world’s most popular crypto, rather than selling; as data shows Bitcoin balance on Crypto Exchanges just reached a 2-year low of 2,337,271.262 BTC.

A previous 2-year low of 2,338,724.621 BTC was observed on 08 April 2021.

 

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Cryptocurrency

XRP surges by 150% in 7 days as Ripple posts early victories against SEC

This surge has pushed the fast-rising crypto into the top 5 cryptos by market value, behind only Bitcoin, Ethereum and Binance Coin.

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XRP, Ripple's co-founder earned $411 million from selling XRP in 2020

Amid the strong bullish rally at play in the cryptoverse, Ripple’s XRP looks to be leading the way with a push as it almost triples in value following a series of legal victories and social media rumours of relisting at some crypto exchanges like Coinbase.

This surge has pushed the fast-rising crypto into the top 5 cryptos by market value, behind only Bitcoin, Ethereum and Binance Coin.

At the time of writing this report, XRP traded at $1.47 with a daily trading volume of $29.3 billion. XRP is up 147% for the week with a current market value of about $67 billion.

READ: Why this unknown crypto with over 600% gain in 3 months, might still explode

The surge in this crypto asset is coming amid a lawsuit from the SEC which accused XRP’s $1.3 billion initial coin offering of being an “unregistered securities offering.” The allegation led most American crypto multiple exchanges to delist the crypto and XRP lost its place as the 3rd largest crypto by market value.

That being said, crypto traders appear to be backing the crypto asset amid credible reports suggesting that Ripple lawyers have posted two victories in their legal tussle against the powerful American regulator, including gaining access to internal Securities Exchange Commission discussion history regarding crypto assets.

READ: XRP stands firm, investors wait on Ripple’s legal outcome

What this means

Such access by Ripple’s lawyers to these records would offer them insights into why the Securities Exchange Commission has not deemed Bitcoin and Ethereum a security asset.

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