BlackRock has updated its application for a spot Bitcoin exchange-traded fund (ETF) to make it more accessible for major Wall Street banks by allowing banks to create new shares in the fund using cash, instead of relying solely on cryptocurrency.

S&P Global has unveiled a new stablecoin stability assessment used to rate eight leading stablecoins. None of the rated stablecoins achieved the highest rating, while two were marked with the lowest rating.

Coinbase Asset Management is launching a new service called Project Diamond, designed for institutional investors to issue and trade digital debt instruments seamlessly using Base, Conbase’s Ethereum layer-2 network.

Top stories in the Crypto Roundup today:

• BlackRock’s Proposed Bitcoin ETF Revised for Bank Participation
• S&P Global Launches Stablecoin Ratings, None Get Top Score
• Coinbase Launches Project Diamond, a Blockchain-Based Debt Platform for Institutions
• CME Overtakes Binance for BTC Futures Open Interest

BlackRock’s Proposed Bitcoin ETF Revised for Bank Participation

BlackRock has updated its application for a spot Bitcoin exchange-traded fund (ETF) to make it more accessible for major Wall Street banks by allowing banks to create new shares in the fund using cash, instead of relying solely on cryptocurrency.

This approach, known as the in-kind redemption “prepay” model, enables financial powerhouses like JPMorgan and Goldman Sachs to become authorized participants in the fund. This bypasses existing limitations that prevent these banks from directly holding Bitcoin or other cryptocurrencies on their balance sheets.

The proposal for this new model was jointly presented to the United States Securities and Exchange Commission (SEC) by a team comprising six members from BlackRock and three from Nasdaq.

In this revised system, authorized participants (APs) would initially transfer cash to a broker-dealer, which would then convert it into Bitcoin and subsequently store it with the ETF’s custody provider, which in BlackRock's case is Coinbase Custody.

According to BlackRock this new model has “superior resistance to market manipulation,” addressing a major factor for the SEC’s consistent rejections of previous spot Bitcoin ETF proposals.

S&P Global Launches Stablecoin Ratings, None Get Top Score

S&P Global has unveiled a new stablecoin stability assessment used to rate eight leading stablecoins. None of the rated stablecoins achieved the highest rating, while two were marked with the lowest rating.

The company’s assessment focuses primarily on each stablecoin's effectiveness in maintaining its peg to fiat currencies through a process that starts with an analysis of asset quality risks. It then considers various risk mitigation factors, followed by an examination of governance, legal and regulatory framework, redeemability and liquidity, technological aspects, third-party dependencies, and historical performance.

In this inaugural rating, Gemini Dollar (GUSD), Pax Dollar (USDP), and USDC, stood out with a rating of 2 (strong), the best rating awarded. Both GUSD and USDP operate under the regulatory oversight of the New York State Department of Financial Services.

In contrast, leading stablecoin Tether received a rating of 4 (constrained). The rating reflects concerns about the transparency of its assets. On the lower end came TrueUSD and FRAX, which received a rating of 5 (weak), primarily due to insufficient information disclosure and reliance on an algorithm, respectively.

Coinbase Launches Project Diamond, a Blockchain-Based Debt Platform for Institutions

Coinbase Asset Management is launching a new service called Project Diamond, designed for institutional investors to issue and trade digital debt instruments seamlessly using Base, Conbase’s Ethereum layer-2 network.

Project Diamond combines Coinbase Prime's custody service, Coinbase's Web3 crypto wallet, Circle's USDC stablecoin, and the layer-2 network Base to create a capital marketplace on the blockchain.

The platform has secured in-principle approval from Abu Dhabi's Financial Services Regulated Activity (FSRA) and will join the agency’s RegLab sandbox. Project Diamond’s first debt instrument issued and distributed was a short-term discount note denominated in USDC on Base, showcasing its capabilities to Abu Dhabi regulators.

This platform is currently accessible to registered institutional users outside the United States. Its launch comes at a time in which global banks and cryptocurrency firms are bringing more traditional assets such as bonds and credit onto blockchains.

CME Overtakes Binance for BTC Futures Open Interest

Derivatives trading volumes on the CME saw a significant increase of 18.4%, reaching $67.9 billion, the highest since November 2021. Specifically, Bitcoin futures trading volume grew by 16.6% to $51.4 billion, while Ethereum futures climbed 13.9% to $13.9 billion, their highest level since February 2022.

The open interest of BTC futures traded on the exchange has meanwhile surged by 20.9% to $4.11 billion, surpassing Binance and making CME the top derivatives exchange by open interest for the first time since October.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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