Tokenized Gold Market Sees Record Growth and Stimulates Crypto Adoption

The market capitalization of tokenized gold assets has crossed the $1 billion mark, according to crypto price tracker CoinGecko. This coincides with the near-record high price of gold and could signal a shift in investment strategies. Tokenized gold, a form of stablecoin, is essentially a digital version of the physical asset and allows investors to own gold through blockchain tokens without the expenses of an exchange-traded fund (ETF) or the challenges of storing gold bars. Two of the dominant gold stablecoins in the market are Pax Gold (PAXG), issued by New York-based fintech firm Paxos Trust Company, and Tether Gold (XAUT), created by Tether, the company behind the $80 billion stablecoin USDT. According to CoinGecko data, PAXG and XAUT have market caps of $518 million and $499 million, respectively. More here.

Switzerland’s fifth-largest financial institution, PostFinance, has announced plans to offer its users access to cryptocurrencies through a collaboration with Sygnum Bank, a regulated digital asset services provider. As a fully-owned entity of the Swiss government, PostFinance will initially grant its 2.5 million customers the ability to purchase, store, and sell leading cryptocurrencies like bitcoin (BTC) and ether (ETH), with plans to expand the selection of crypto-tokens in the future. The agreement between PostFinance and Sygnum is a stark contrast to the approach taken by countries like the U.S., where there appears to be a concerted effort to curtail the growth of digital assets. Sygnum, which received a banking license from Swiss regulators about four years ago, serves a diverse clientele, including Cantonal banks and private banks, all with a focus on the crypto industry. Details here.

Texas Senate committee has advanced a bill that could potentially make the state less appealing for Bitcoin miners. Sponsored by Republican state senators Lois Kolkhorst, Donna Campbell, and Robert Nichols, the bill proposes eliminating tax breaks and requiring miners using over 10 megawatts (MWs) to register as flexible load operators with the state grid operator ERCOT. On April 4, lawmakers unanimously approved Senate Bill 1751 with a 10-0 vote. Texas is known as a major global hub for Bitcoin mining due to its deregulated grid, affordable electricity, and renewable energy options. In 2021, legislators promoted the state as a welcoming alternative for mining operations displaced by China’s ban. According to Texas Blockchain Council President Lee Bratcher, bitcoin miners in Texas are consuming 75% more power than last year, totaling around 2,100 MW. Read More.

Dubai is intensifying its examination of crypto license applicants, such as Binance, in light of last year’s FTX bankruptcy, demanding more details from companies seeking permits, according to anonymous sources familiar with the matter. Dubai’s Virtual Assets Regulatory Authority (VARA) has recently requested information from Binance on its ownership structure, governance, and auditing procedures, the sources said. Similar details are being sought from all international firms applying for permits. The increased scrutiny by Dubai could pose challenges for Binance CEO Changpeng “CZ” Zhao, who is based in Dubai and has plans to expand in the Middle East, as he faces mounting pressure from US regulators. Full report here. 

MicroStrategy, led by Michael Saylor, has acquired an additional 1,045 bitcoins (BTC) for a sum of $23.9 million, with an average cost of $28,016 per bitcoin, as reported in a Securities and Exchange Commission filing between March 23 and April 4. This new acquisition increases the firm’s bitcoin holdings to roughly 140,000, currently valued at around $4 billion with bitcoin trading at $28,500. The overall average purchase price for these holdings is $29,803. On March 27, MicroStrategy announced the acquisition of 6,455 bitcoins, amounting to $161 million, over the previous five weeks. The company also revealed that it had paid off the remaining balance of its $205 million loan from the now-defunct Silvergate Bank. More here.

Decentraland’s recent four-day virtual fashion week concluded with mixed results. Despite its previous success, the metaverse platform experienced a significant drop in attendance this year, with only 26,000 people attending compared to last year’s 108,000 unique attendees – a staggering 76% decline. Top brands such as Dolce & Gabbana, Tommy Hilfiger, and Adidas sponsored shows, yet the highest number of simultaneous users barely exceeded 1,000. With a valuation of $1 billion and its native token, mana, once boasting a market capitalization of over $6 billion, Decentraland faced a challenging event. Nonetheless, event organizers remained optimistic. Dr. Giovana Graziosi Casimiro, Head of Metaverse Fashion Week, said, “Although attendee numbers were down, we had tens of thousands of new visitors to the metaverse. More here.

Sam Bankman-Fried is set to face stringent restrictions on his electronic and internet use in the coming days, akin to being confined in a legal “Faraday box.” A judge has granted Bankman-Fried’s request to postpone the enforcement of these new bail terms until next week. Once they take effect, he will have to surrender his smartphone and laptop to his lawyers and receive replacements with restricted capabilities. Bankman-Fried’s new phone will