As Binance.US grapples with increasing scrutiny from US regulators, the cryptocurrency exchange's trading volume has seen a decline of over 98% from January 2022 and is on track to drop further in September.

Citigroup is set to dive deeper into blockchain technology by launching its Citi Token Services, a private and permissioned blockchain offering cross-border payments, liquidity, and automated trade finance solutions to institutional clients.

Cryptocurrency-focused venture capital firm Blockchain Capital has successfully raised $580 million to fuel two new funds, bucking the current downward cryptocurrency market trend.

Top stories in the Crypto Roundup today:

• Binance.US Trading Volume Plummeted 98% Amid Crisis
• Citigroup Launches Blockchain-Based Deposit and Trade Services
• Blockchain Capital Raises $580 Million for Two New Crypto Funds
• Binance Leads Crypto Exchange Volumes in August, But Loses Market Share

Binance.US Trading Volume Plummeted 98% Amid Crisis

As Binance.US grapples with increasing scrutiny from US regulators, the cryptocurrency exchange's trading volume has seen a decline of over 98% from January 2022 and is on track to drop further in September.

According to data from CCData, the US subsidiary of the leading cryptocurrency exchange registered a trading volume of $115.7 million until September 15, while in August it boasted a volume exceeding $286 million.

The downtrend follows lawsuits filed by the Securities and Exchange Comission(SEC) and the Commodity Futures Trading Commission (CFTC) against Binance, its US subsidiary Binance.US, and co-founder Changpeng “CZ” Zhao.

The allegations revolved around operating an unauthorized exchange, dealing in unregistered securities, violating commodities regulations, and potential mishandling of customer funds.

While Binance has been contesting these charges in court, Binance.US has lost its banking support, suspended US dollar deposits, and underwent a series of layoffs since the legal battles started, with several high-level executives departing.

Citigroup Launches Blockchain-Based Deposit and Trade Services

Citigroup is set to dive deeper into blockchain technology by launching its Citi Token Services, a private and permissioned blockchain offering cross-border payments, liquidity, and automated trade finance solutions to institutional clients.

According to Citigroup, the service aims to seamlessly "integrate tokenized deposits and smart contracts into Citi’s global network." Citi Treasury and Trade Solutions (TTS), which boasts banking licenses in over 90 countries, has already trialed this service in two preliminary pilots.

TTS collaborated with Denmark's shipping magnate, Maersk, and an undisclosed canal authority saw the innovative system facilitating instantaneous payments via smart contracts, which saw the service replace bank guarantees and letters of credit and reduce transaction processing times from days to minutes.

A second pilot allowed clients to transfer liquidity between Citi branches around the clock, effectively reducing “frictions related to cut off times and gaps in the service window.”

Integral to the Citi Token Services is its utilization of deposit tokens, a representation of tokenized commercial bank assets.

Blockchain Capital Raises $580 Million for Two New Crypto Funds

Cryptocurrency-focused venture capital firm Blockchain Capital has successfully raised $580 million to fuel two new funds, bucking the current downward cryptocurrency market trend.

The funds are set to be split so that $380 million will be for Blockchain Capital's sixth early-stage fund, a vehicle targeting fledgling companies and protocols in the embryonic pre-seed to Series A stages, and $200 million will be injected into its opportunities fund, with a purview over more mature investments from Series B onwards.

The fundraise suggests there remains an appetite for investment, even after the tumultuous year the digital asset has been facing in the aftermath of the collapsed of cryptocurrency exchange FTX and numerous bankruptcies in the space.

Binance Leads Crypto Exchange Volumes in August, But Loses Market Share

Binance remained the leading cryptocurrency exchange by spot trading volumes in August, registering $183 billion of volume over the month. Yet, for the sixth month in a row, the exchange has seen its market dominance diminish, dropping to 38.5%.

The figure marks its most reduced market share since August 2022. Its volume was nevertheless above Coinbase’s $26.5 billion and Upbit’s $19.2 billion.

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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