Coinbase earnings show the company is now much more than just an exchange
The Coinbase earnings report shows that services and subscriptions are the exchange’s core revenue streams. Is this a positive or a negative?
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Značka: reserves
Tether’s excess reserves up to $3.3B, holds $72.5B worth of US Treasury bills
Tether has released its latest reserves attestation for USDT, with its excess reserves increasing to $3.3 billion.
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Circle reportedly adjusts USDC reserves to avoid US default risk
The world’s second-largest stablecoin issuer wants to reduce its exposure to potential US debt defaults.
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Tether has $1.5B in Bitcoin reserves: BDO Italia
The financial advisory and accounting firm also revealed that Tether held roughly $3.4 billion worth of precious metals.
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Crypto users turned to DEXs, loaded up on USDC after Silicon Valley Bank crash
The collapse of FTX led to a similar exodus from centralized exchanges, as users worried they may lose access to funds during crises.
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Circle CEO 'able to access' $3.3B of USDC's reserves at Silicon Valley Bank
Circle’s earlier disclosure that $3.3 billion worth of USDC reserves were held with Silicon Valley Bank resulted in it losing market share to its competitor USDT.
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Binance sees record 138K BTC inflows as opinions differ on what Bitcoin price will do next
Bitcoin (BTC) inflows to largest exchange Binance just saw a giant spike reminiscent of the 2018 bear market capitulation.Data from on-chain analytics platform CryptoQuant shows that on Nov. 18, a giant tranche of almost 60,000 BTC entered Binance’s wallet.Exchange inflows highest since late 2018BTC price contagion fears thanks to FTX insolvencies and related panic selling are ongoing.Now, the latest on-chain figures from Binance could provide an additional catalyst for nervous markets — the exchange has seen its daily biggest inflow on record.With Nov. 18 not over, partial data from CryptoQuant puts current inflows at over 138,000 BTC for the day so far.Binance BTC inflows chart. Source: CryptoQuantTo put the deposit in perspective, even taking into account outflows — not just at Binance, but other major exchanges — the inflows are still the largest since Nov. 30, 2018. Two weeks later, BTC/USD bottomed at $3,100 after falling 40%.For Binance itself, meanwhile, the move means that its BTC reserves are now higher than before the FTX debacle began — 573,000 compared to 513,000 on Nov. 6.Binance BTC reserve chart. Source: CryptoQuantThe event has not gone unnoticed, and one commentator was quick to note that just over 59,000 had come from a “de-peg” of Binance’s Bitcoin BEP2 (BTCB) token.BTCB is a Bitcoin-backed token on Binance Chain with a publicly known reserve address. That wallet contained 68,200 BTC at the time of writing, having seen outflows of 127,351 BTC on the day.Unlike regular operations, however, the decrease in the BTCB market cap at the same time as the reserve decreased suggests that genuine selling is afoot, according to CryptoQuant CEO, Ki Young Ju.Ki explained the theory behind what he called “sellside pressure” in a Twitter thread:“Rationale: – If you’re CZ, why do you unpeg Bitcoins from BNB chain? Your goal is to support projects on BNB chain. – No announcements from Binance means it’s customer or investor’s money. So I think this activity was highly likely from customer(s) who are in urgent situation.”Bitcoin BEP2 (BTCB) reserve address transaction summary (screenshot). Source: BTC.comExchanges’ week of heatOpinions were nonetheless far from aligned on the issue, with others arguing that the giant inflows were simply internal reorganization, which would have no further repercussions.Related: Bitcoin price target now $13.5K as BTC trader says ‘exit all the markets’“Binance saw a large inflow of up to 127,351 bitcoins and a large outflow of nearly 50,000 bitcoins today. On-chain verification shows that these inflows and outflows are organized by internal wallets, which are transfers between cold wallets and wallets for proof of reserves,” cryptocurrency journalist Colin Wu stated in a widely-reproduced tweet.“I don’t really understand the Jump rumors,” Andrew T, a technician at analytics platform Nansen, tweeted about the general inflow tally to Binance. “There have been some massive outflows past seven days, but also inflows elsewhere. ‘they’re transferring to Binance to dump’ doesn’t seem right.”Bitcoin exchange BTC netflow chart. Source: CryptoQuantAs Cointelegraph reported, exchange users withdrew over $3 billion in the days following FTX going under, a trend which continues.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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Tether reports 17% decrease in commercial paper holdings over Q1 2022
USDT Stablecoin issuer Tether (USDT) has reported it cut its reserves allocation to commercial paper investments and increased that of United States Treasury bills over the first quarter of 2022.In a Thursday blog post, Tether reported its reserves were “fully backed,” seemingly in an effort to assuage many users’ fears around USDT briefly depegging from the dollar on May 12. According to the stablecoin issuer, its commercial paper holdings over Q1 2022 decreased 17% from roughly $24 billion to $20 billion, with an additional 20% reduction to be reflected in the firm’s next quarterly report. Tether also increased investments in money market funds and U.S. Treasury bills by 13% over the same quarter, from roughly $34.5 billion to $39 billion.“Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honor a redemption request from any of its verified customers,” said Tether chief technical officer Paolo Ardoino. “This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative and liquid.“Assurance Opinion Once Again Re-affirms Tether’s Reserves Fully Backed; Reveals Significant Reductions in Commercial Paper and Increase in U.S. Treasury Bills https://t.co/8qVSQFQBeY— Tether (@Tether_to) May 19, 2022As part of an $18.5 million settlement with the Office of the New York Attorney General in February 2021 — in which authorities alleged the firm misrepresented the degree to which its USDT stablecoins were backed by fiat collateral — Tether is required to disclose its reserves every quarter. In February, the company reported it had cut its reserves allocation to commercial paper in Q4 2021 from roughly $30 billion to $24 billion, a 20% decrease.Related: The United States turns its attention to stablecoin regulationWith a market capitalization of more than $74 billion at the time of publication, USDT exceeds Tether’s reported reserve assets at more than $82 billion. During the extreme volatility in the crypto market over the last two weeks, Tether reiterated that it would “honour all redemptions from verified customers” for USDT, seemingly in an effort to prove the asset was as stable as its namesake.
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Stablecoin supplies and cash reserves in question amid crypto exodus
Cryptocurrency investors and traders have cashed out $7.7 billion from the stablecoin Tether (USDT) resulting in its market capitalization falling by 7.8% over the past seven days to $76 billion.The amount withdrawn from the top stablecoin is nearly double the $4.1 billion it held in cash reserves at the end of 2021 according to Tether’s latest reserves report from December 2021.To maintain Tether’s peg with the US dollar the company behind the token backs USDT with assets such as cash, bonds, and Treasury bills, the purpose being that each token is backed by at least $1 worth of assets.According to the latest reserves report, the company had a total assets amount of at least $78.6 billion, around $4 billion or 5% of which was cash.However, the firm seems to be able to maintain its cash reserves despite the “bank run” scenario caused by the collapse of the algorithmic stablecoin TerraUSD (UST) which had investors fleeing not only stablecoins but the entire crypto market for fear of collapse.A separate transparency report updated daily shows that 6.36% of Tether’s assets are currently held in cash which would amount to roughly $4.8 billion if Tether’s reserves closely match the USDT market cap. On May 12, market panic caused USDT/USD to trade under $0.99 on major exchanges, causing Tether to issue a statement at the time stating that it will honor all redemptions to $1.https://twitter.com/Tether_to/status/152472463333705728The same day, Tether’s Chief Technology Officer Paolo Ardoino said in a Twitter spaces chat that the majority of the company’s reserves are in U.S. Treasuries and that over the last six months it has reduced its exposure to commercial paper.Related: Untethered: Here’s everything you need to know about TerraUSD, Tether, and other stablecoinsTether has received scrutiny for its secrecy regarding the assets in its reserve and only published its first reserve breakdown in May 2021. The published reports are still vague as to the exact assets the company invests in.This obscurity coupled with the recent short-lived de-pegging had some investors rushing to swap their Tether for another popular US dollar stablecoin, USD Coin (USDC) on the notion that USDC was audited and already fully backed by cash and U.S. Treasuries.A blog post on May 13 by Circle’s Chief Financial Officer Jeremy Fox-Geen made in response to the stablecoin fallout reaffirmed that USD Coin was fully backed by cash and U.S. Treasuries for the 50.6 billion USDC in circulation.Data from CoinGecko further shows investors finding a safe harbor in USDC, a 6.3% leap in the USDC market cap took place between May 3 and May 17 representing $3.1 billion of inflows over that time.
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Circle selects BNY Mellon as custodian for USDC reserves
On Thursday, USD Coin (USDC) operator Circle announced that it had selected financial institution BNY Mellon as the custodian of its USDC reserves. Founded in 1784, BNY Mellon is one of the oldest banks in America and possesses over $46.7 trillion in assets under custody or administration worldwide. It serves as a single point of contact for clients looking to manage their investments. With the new partnership, BNY Mellon said it will also explore the possibility of using digital cash for settlement purposes. Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon, gave the following remarks: “We are at a point in the evolution of our industry where the digitization of assets presents new and exciting opportunities to a broad range of market participants. As a custodian for USDC reserves, our role supports the broader marketplace and brings value to clients, founded on our role at the intersection of trust and innovation.”Meanwhile, Jeremy Allaire, co-founder and CEO at Circle, added:”As we continue to see exponential growth in USDC, the opportunity to work with BNY Mellon is one way we build bridges between traditional financial services and emerging digital asset markets without sacrificing trust.”USDC is one of the fastest-growing dollar digital currencies globally with over $52 billion in circulation as of March 2022. As previously reported by Cointelegraph, the total supply of stablecoins hit $180 billion last month. The United States is one of the most regulatory-friendly countries regarding stablecoins, with Fed Governor Waller previously voicing skepticism as to the adoption of a central bank digital currency, saying that it would potentially stifle innovation in the private stablecoin sector.
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Anchor protocol's reserves head toward depletion due to lack of borrowing demand
Anchor, the flagship savings protocol of the Terra Luna (LUNA) ecosystem, has seen its reserves decline by 35.7% in the past seven days, according to Terra.Engineer. Since the beginning of December, the amount of Terra USD Stablecoin (UST) held in the “terra1tmnqgvg567ypvsvk6rwsga3srp7e3lg6u0elp8” smart contract has declined by over 50%, with only $35.7 million remaining.As a savings protocol, users deposit their UST assets via their wallets and earn up to 20% yields as their principal is lent out to borrowers, who pay interest on the loan amount. Borrowers must deposit collateral to ensure the lender can get their money back in the event of a default. In addition, Anchor stakes the collateral it receives to generate rewards for depositors.Whenever there is a deficiency between the income generated through borrowers’ interest, collateral staking and the yield expenses paid out to depositors, Anchor must tap into the aforementioned TerraUSD (UST) reserves to make up for the difference. Last July, its creator Terraform Labs injected 70 million UST into the reserve protocol and its value was relatively stable. But in the past 60 days, the total deposit amount has increased from $2.3 billion to $6.1 billion, while the total borrowed amount only increased from $1.2 billion to $1.5 billion.In bear markets, investors typically flock out of volatile assets in search of stable ones, such as high-yield savings protocols. However, the growing discrepancy between Anchor’s deposits and borrowings has placed severe pressure on its reserves. If the trend were to continue, the reserve would run out in the coming months, and Terraform Labs would need to inject another round of UST for liquidity or sharply lower Anchor’s promised interest rate.My thoughts on @anchor_protocol and the yield reserve depleting 1/ Just 2 months ago, the yield reserve was actually increasing every day and the issues of today were not even a consideration. As the adoption of $UST really started to rise and the deposits (lending) into pic.twitter.com/fTH4WecPr9— Yield Labs (@YieldLabs) January 27, 2022
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$1.1B in Bitcoin options expire on Friday, but data points to a sub-$55K BTC price
Bitcoin (BTC) bulls are still licking their wounds from the bloody Dec. 4 correction which saw the price collapse from $57,000 all the way to $42,000. This 26.5% downside move caused $850 million in long BTC futures contracts to be liquidated, but more importantly, it shifted the “Fear and Greed index” to its lowest level since July 21.Bitcoin/USD price at FTX. Source: TradingViewIt is somehow strange to compare both events, as the July 21 sub $30,000 low would have erased the entire gains in 2021. Meanwhile, the $42,000 low from Dec. 4 is still a 44% gain year-to-date. Compare this against the S&P 500 which is up 21% in 2021 and the WTI oil price which has accrued a 41% gain.Bulls might be focused on the Bitcoin reserves held at exchanges, which continues to descend and currently sits at the lowest level in 3 years. According to data from CryptoQuant, there are now less than 2.27 million BTC deposited at exchanges and having fewer coins available for trading signals that investors are unwilling to sell in the short term. This is a dynamic that many investors consider to be bullish.Even with the apparent balance between call (buy) and put (sell) options on Friday’s $1.1 billion expiry, bears are better positioned after Bitcoin stabilized slightly above $50,000.Bitcoin options aggregate open interest for Oct. 10. Source: CoinGlassA broader view using the call-to-put ratio shows a modest 7% advantage to Bitcoin bulls because the $555 million call (buy) instruments have a larger open interest versus the $520 million put (sell) options. However, the 1.07 indicator is deceptive because the 11.5% price drop over the past week caused most bullish bets to become worthless.For example, if Bitcoin’s price remains below $52,000 at 8:00 am UTC on Dec. 10, only $50 million worth of those call (buy) options will be available. That effect happens because there is no value in the right to buy Bitcoin at $55,000 if it is trading below such price.The numbers suggest that bulls are set for a major lossBelow are the three most likely scenarios based on the current price action. The number of option contracts available on Dec. 10 for bulls (call) and bear (put) instruments vary depending on the expiry BTC price. The imbalance favoring each side constitutes the theoretical profit:Between $47,000 and $50,000: 400 calls vs. 6,600 puts. The net result is $300 million favoring the put (bear) instruments.Between $50,000 and $54,000: 1,700 calls vs. 4,700 puts. The net result is $160 million favoring the put (bear) instruments.Above $54,000: 2,400 calls vs. 2,900 puts. The net result favors the put (bear) options by $30 million.This crude estimate considers the call options being used in bullish bets and the put options that are exclusively in neutral-to-bearish trades. Even so, this oversimplification disregards more complex investment strategies.For instance, a trader could have sold a call option, effectively gaining a negative exposure to Bitcoin above a specific price. But, unfortunately, there’s no easy way to estimate this effect.Bears will do their best to hold BTC below $50,000Bitcoin bears need a gentle push to sub-$50,000 to score a $300 million profit. On the other hand, bulls would need a 7.2% price recovery from the current $50,500 to reduce their loss by half.Considering the $2 billion liquidation of leverage long positions on Dec. 4, bulls are likely trying to stay afloat and will be unwilling to add more risk right now. It would be unnecessarily ineffective for bullish investors to waste their efforts trying to salvage this short-term loss. So in this instance, bears look set to maintain the upper hand in this weekly options expiry.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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