Circle, the company behind the USDC stablecoin, has joined forces with SBI Holdings, a Japanese financial giant, to expand its reach in Japan.

Late last week, Grayscale’s Bitcoin Trust (GBTC), the world’s largest Bitcoin investment vehicle, experienced its narrowest discount since July 2021amid growing optimism a spot Bitcoin exchange-traded fund (ETF) will be approved in the United States.

Investment managers in the United Kingdom are receiving regulatory encouragement to adopt blockchain technology to tokenize funds, moving away from traditional record-keeping methods.

Top stories in the Crypto Roundup today:

• Circle Joins Forces with SBI Holdings to Boost USDC Adoption in Japan
• Grayscale Bitcoin Trust Discount Shrinks to Two-Year Low
• UK Investment Managers Encouraged to Tokenize Funds on the Blockchain
• The Fallout of Binance’s Settlement and Its Impact on Volume & Market Share

Circle Joins Forces with SBI Holdings to Boost USDC Adoption in Japan

Circle, the company behind the USDC stablecoin, has joined forces with SBI Holdings, a Japanese financial giant, to expand its reach in Japan.

The firms signed a Memorandum of Understanding, which “includes SBI Group and Circle initially working towards the circulation of USDC and expanding the use of stablecoins in Japan.”

SBI VC Trade, a subsidiary of SBI Holdings, is currently applying for a license as an electronic payment instruments service in Japan, aiming to circulate USDC stablecoins in the country.

Additionally, SBI Shinsei Bank will offer banking services to Circle, enhancing the accessibility and liquidity of USDC for businesses and consumers in Japan. SBI Group also plans to integrate Circle's Web3 Services, including “programmable Wallet, blockchain infrastructure, and smart contract management tools” as part of its digital asset strategy.

The move comes after the country updated its Payment Services Act in June, to establish stablecoin-related regulations after the collapse of the Terra ecosystem. This was done in a bid to ensure investor protection.

Grayscale Bitcoin Trust Discount Shrinks to Two-Year Low

Late last week, Grayscale’s Bitcoin Trust (GBTC), the world’s largest Bitcoin investment vehicle, experienced its narrowest discount since July 2021  amid growing optimism a spot Bitcoin exchange-traded fund (ETF) will be approved in the United States.

The discount of GBTC shares to the trust's net asset value (NAV) dropped to a two-year low of 8.6%, its lowest discount in over two years. The fund has been trading at a discount since February 2021, reaching an all-time low of nearly 50% in December last year.

Bloomberg ETF analyst Eric Balchunas said on social media that the recent narrowing is likely a reaction to Grayscale's recent filings with the U.S. Securities and Exchange Commission (SEC) and a reported meeting last week.

Grayscale is currently awaiting a decision from the SEC on whether it can convert the Grayscale Bitcoin Trust, a closed-end fund, into a spot Bitcoin ETF.

Grayscale has also signed a transfer agency and service agreement with BNY Melon, according to a filing shared by Scott Johnson, financial lawyer. The agreement will allow the bank to act as the agent for GBTC, handling the issuance and redemption of shares.

UK Investment Managers Encouraged to Tokenize Funds on the Blockchain

Investment managers in the United Kingdom are receiving regulatory encouragement to adopt blockchain technology to tokenize funds, moving away from traditional record-keeping methods.

A report from the Investment Association highlights that tokenization of funds, using distributed ledger technology (DLT) to issue tokenized units or shares, can significantly enhance the efficiency and transparency of the financial industry.

The report points out that a shared real-time record-keeping system for all parties involved in servicing the fund can lower administration costs, streamline the reconciliation process, and allow for faster settlements.

It also lays out principles for the implementation of tokenized funds, which include maintaining relevance to both domestic and international investors, and not limiting the focus to just the investment asset manager industry.

Moreover, the report discusses the necessity of a roadmap for implementation, along with a focus on competitiveness and efficiency in the sector. It specifies that the fund must be established in the UK, be authorized by the FCA, and comply with traditional financial industry standards, while legal and regulatory rules will remain unchanged.

Sarah Pritchard, executive director of markets and international at the Financial Conduct Authority (FCA) has said the regulator wants to “support firms to implement technological solutions which enhance and strengthen the UK’s asset management industry, while addressing risks and potential harms.”

The Fallout of Binance’s Settlement and Its Impact on Volume & Market Share

Founded by Changpeng Zhao (CZ) in July 2017, Binance rapidly grew to become the largest centralized exchange in the cryptocurrency space. By March of this year, it had secured a commanding 57% market share, a testament to its increasing dominance since March 2020.

However, the exchange’s market share has since dropped to 32% from its peak, with the firm now required to appoint an independent compliance monitor for three years, reporting compliance efforts to the US.

Recently, CZ, stepped down from his position as CEO of the firm, following his admission of guilt in violating U.S. anti-money laundering regulations. This development marks the conclusion of an extensive investigation by the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) into both CZ and Binance.

CCData’s latest blog delves into the settlement reached between Binance and the U.S. Department of Justice, scrutinizing its ripple effects across the digital asset market. The analysis includes a look at the price movements of Binance’s token (BNB), the trading activity on the exchange, and the broader impact on the cryptocurrency industry and regulatory environment.

State of the Crypto by Top Tier Exchange Volume

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