After the immense failure of FTX, the crypto market is shaken, yet traditional financial institutions are stepping into the digital currency world. The Regulated Liability Network (RLN), a proof-of-concept digital currency network, was launched on Tuesday, according to a collection of banking organizations including HBSC, Mastercard, and Wells Fargo. The platform, according to the group, would use distributed ledger technology. The group claims that RLN will run for twelve weeks and will be operating in U.S. dollars. The group says the project will include a regulatory framework aligned with existing regulations like “know your customer” (KYC) and anti-money laundering requirements. A national digital money pilot project is being developed, according to the US Federal Reserve. China has already started working on a digital yuan. In September, Australia advanced its pilot project utilizing an enterprise-grade, private variation of the Ether token known as Quorum.
Circle’s performance will be “materially worse” than expected because of the collapse of FTX and the automatic conversions of USD coins. The “small” FTX stake that Circle CEO Jeremy Allaire hinted at on Twitter is a $10.6 million investment, according to Circle. Circle issued USDC worth $84 billion in the first half of 2022. This is more than twice as much as what was issued during the same time period in 2021. However, that was more than balanced by $71 billion in redemptions, a more than threefold increase from the previous year. After Binance’s BUSD conversion, USDC is the second-largest stablecoin. 15% of the $43.5 billion invested in decentralized finance is now being accounted for by MakerDAO, the largest decentralized lending platform. Investors are switching from stablecoins to “US Treasuries” as a result of rising interest rates.
FTX’s ex-CEO, Sam Bankman-Fried, continues to tweet even after its collapse. According to its former CEO, FTX US has the money to “repay all customers.” Last week, FTX International filed for bankruptcy after it was discovered that funds from the exchange were being used to make bets on Alameda Research. Some SBF watchers have since assumed that the oddly timed posts were connected to the removal of earlier ones that would have adversely harmed the struggling former CEO in the future. argues that Alameda, his trading company, had assets that were tagged to market that exceeded obligations. The Bahamas Police and American officials are investigating FTX’s collapse.
That’s it for today, see you tomorrow