In a newly published Financial Stability Report, the Bank of England (BoE) has warned of the threat of crypto “spillovers” to mainstream financial markets after pointing to bearish conditions in the cryptocurrency market.

Leading decentralized exchange Uniswap has moved one step closer to launching on a layer-two scaling solution with the launch of an Alpha test on Optimistic Ethereum.

Brazil-based asset manager Hashdex is set to launch a bitcoin-based exchange-traded fund (ETF) that seeks to neutralize carbon emissions by using a portion of the management fee to buy carbon credits and offset the carbon produced by BTC in the fund.

Join our latest Virtual Event: Rising Tide: Challenges and Opportunities for Regulated Decentralized Finance

Sponsored: Buy bitcoin and 100+ cryptocurrencies with 20+ fiat currencies. New users can enjoy 0% credit/debit card fees on all crypto purchases made in their first 30 days. Join 10 million users and download the Crypto.com App now.

Top stories in the Crypto Roundup today:

• Bank of England Warns of Crypto ‘Spillovers’
• Uniswap Moves Closer to Layer-2 With Alpha Launch on Optimism
• Hashdex to Launch Bitcoin ETF That Seeks to Neutralize Carbon Emissions
• Sponsored: Crypto.com - The World’s Fastest Growing Crypto App

Bank of England Warns of Crypto ‘Spillovers’

In a newly published Financial Stability Report, the Bank of England (BoE) has warned of the threat of crypto “spillovers” to mainstream financial markets after pointing to bearish conditions in the cryptocurrency market.

In the report, the BoE claims the “spillovers to broader financial markets” from cryptocurrencies are limited, but amidst the growing interest in cryptoassets by institutional investors, banks, and payment operators, they are a growing concern.

The report added:

"These developments could increase the interlinkages between cryptoassets and other systemic financial markets and institutions.”

Exposure to cryptocurrencies amongst financial institutions has been growing and was highlighted as a threat by the Bank of International Settlements in the past. The institution has even suggested banks should set aside capital to cover potential losses in full.

Uniswap Moves Closer to Layer-2 With Alpha Launch on Optimism

Leading decentralized exchange Uniswap has moved one step closer to launching on a layer-two scaling solution with the launch of an Alpha test on Optimistic Ethereum.

In a blog post, the team behind Uniswap wrote:

"During this Alpha period, OΞ will support an initial throughput of 0.6 transactions per second. Because Uniswap v3 is currently one of the few protocols deployed to OΞ, this should translate to transaction capacity roughly in line with L1. Unlike L1, transactions on OΞ confirm instantly — no more pending or stuck swaps!"

The layer-two scaling technology is being developed by the a16z-backed startup Optimism. The startup works on rollups, which aggregate transactions onto a secondary protocol to scale the base layer and sharply reduce transaction costs.

The implementation has big implications for exchanges like Uniswap, which conducts transactions directly on the Ethereum blockchain. Uniswap itself is one of the biggest consumers of gas on the network, accounting for over 1,500 ETH spent on transactions over the last 30 days.

Hashdex to Launch Bitcoin ETF That Seeks to Neutralize Carbon Emissions

Brazil-based asset manager Hashdex is set to launch a bitcoin-based exchange-traded fund (ETF) that seeks to neutralize carbon emissions by using a portion of the management fee to buy carbon credits and offset the carbon produced by BTC in the fund.

The ETF is set to be listed on Brazilian stock exchange B3 on August 4, and investors have until July 30 to secure their first shares of the product, called the Hashdex Nasdaq Bitcoin Reference Price Index Fund (BITH11).

Roberta Antunes, chief of growth at Hashdex, said:

“We understand that bitcoin can contribute greatly to encouraging the use of clean energy around the world. We want to anticipate this movement and offer investors a product that stimulates the sustainable potential of this asset.”

The project is supported by the Crypto Carbon Ratings Institute (CCRI), which will produce annual reports estimating the energy consumption and carbon emissions associated with the mining process of all the BTC acquired by the BITH11 ETF.

Join our latest Virtual Event: Rising Tide: Challenges and Opportunities for Regulated Decentralized Finance

 

 

Crypto and decentralized finance (DeFi) introduce a plethora of opportunities to transform financial services, making them more accessible, transparent and efficient. At the same time, they also introduce a new world of risks and uncertainties, which regulators, financial institutions and investors worldwide are just beginning to grapple with.

As blockchain-based finance continues to tap value locked within legacy infrastructures and decades-old business practices, the crypto and DeFi space will need to continually find ways to bridge finance and finance 2.0.

Please join Securrency, Solidus Labs, CryptoCompare, Global Digital Currency Association and hundreds of industry leaders and regulators for a series of thought-provoking discussions covering the tremendous potential and possible pitfalls from modernizing our financial services ecosystem.

You can learn more about the event and register for it here.

Crypto.com - The World’s Fastest Growing Crypto App

Buy bitcoin and 100+ cryptocurrencies with 20+ fiat currencies. New users can enjoy 0% credit/debit card fees on all crypto purchases made in their first 30 days. Join 10 million users and download the Crypto.com App now.

Press Release

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.