Bitcoin traders are looking to the Federal Reserve for direction as the central bank is set to announce its latest policy decision later today. While interest rates are expected to remain unchanged, investors are focused on a potential end to quantitative tightening.

Nasdaq-listed cryptocurrency exchange Coinbase has announced the launch of Verified Pools, a new service aimed at reducing counterparty risk for decentralized finance (DeFi) participants.

Strategy, formerly known as MicroStrategy, is moving ahead with a $500 million sale of perpetual preferred stock, aiming to use the proceeds for bitcoin purchases and corporate expenses. The offering, set to price later this week, follows the firm’s recent acquisition of $10.7 million worth of BTC.

Top stories in the Crypto Roundup today:

• Bitcoin Eyes Fed Decision as Investors Weigh Quantitative Tightening Shift
• Coinbase Introduces Verified Pools to Reduce DeFi Counterparty Risk
• Strategy to Raise $500 Million Through Preferred Stock Sale to Accumulate More Bitcoin

Bitcoin Eyes Fed Decision as Investors Weigh Quantitative Tightening Shift

Bitcoin traders are looking to the Federal Reserve for direction as the central bank is set to announce its latest policy decision later today. While interest rates are expected to remain unchanged, investors are focused on a potential end to quantitative tightening.

Since mid-2022, the Federal Reserve has been reducing its $9 trillion balance sheet in an effort to tighten financial conditions. However, minutes from the January meeting suggest policymakers discussed slowing or pausing the runoff.

If Fed Chair Jerome Powell signals an earlier-than-expected end to quantitative tightening, It could be seen as a sign of a more accommodative policy stance. That stance, some analysts believe, could serve as a bullish catalyst for bitcoin and other risk assets.

A slight dovish shift could also be reinforced by the Fed’s Summary of Economic Projects, which will be released alongside its policy statement. If inflation concerns prompt the Fed to push back rate cut expectations, however, it could temper enthusiasm for risk assets.

Bank of America analysts expect the Fed to temporarily halt quantitative tightening to address debt ceiling-related liquidity concerns.

Coinbase Introduces Verified Pools to Reduce DeFi Counterparty Risk

Nasdaq-listed cryptocurrency exchange Coinbase has announced the launch of Verified Pools, a new service aimed at reducing counterparty risk for decentralized finance (DeFi) participants.

Verified Pools are liquidity pools that will only be accessible to users who complete Coinbase’s identity verification process, in an approach designed to bring a compliance-focused structure to on-chain markets.

The new feature will operate on Base, Coinbase’s Ethereum Layer-2 network, and use the Uniswap v4 protocol for liquidity provision. The pools are non-custodial, meaning users retain control over their assets while benefitting from a KYC-verified trading environment.

The exchange has partnered with risk management firm Gauntlet to ensure liquidity. The service is initially only available in select regions including the U.S., Singapore, Netherlands, British Virgin Islands, Cayman Islands, and Channel Islands.

Strategy to Raise $500 Million Through Preferred Stock Sale to Accumulate More Bitcoin

Strategy, formerly known as MicroStrategy, is moving ahead with a $500 million sale of perpetual preferred stock, aiming to use the proceeds for bitcoin purchases and corporate expenses. The offering, set to price later this week, follows the firm’s recent acquisition of $10.7 million worth of BTC.

Morgan Stanley, Barclays, Citigroup, and Moelis & Co. are leading the deal as book runners. The stock will offer investors a fixed annual dividend of 10%, but will not carry a credit rating.

A roadshow, consisting of one-on-one meetings with potential investors, is planned for Tuesday and Wednesday.

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