Sygnum's High 5: Discover the top news in crypto for the week!
Governments, institutions, and retail investors show record-level adoption, while the main digital assets improve with network upgrades. At the same time, global mining hubs shift from Asia to the US amid a new crackdown on Bitcoin’s energy needs. Read more about the top crypto news of this week.
Sygnum now offers custody services for DeFi tokens.
It is not news that Decentralized Finance (DeFi) is shaping the finance world while starting to generate mainstream adoption due to its innovation and the flexibility it offers to citizens and investors. Sygnum is now happy to offer institutional banking services for several DeFi Tokens - Aave, Aragon, Curve, Maker, Synthetix, Uniswap, and 1inch - with custom solutions coming in the future to generate additional yield on DeFi. Investors can now benefit from the expertise, security, and efficiency of an institutional provider like Sygnum to invest comfortably in the DeFi emergence.
Panama to follow El Salvador’s cue.
After El Salvador turned Bitcoin into legal tender in the country, many other Central and Latin American countries showed interest in similar routes. Panamanian congressman, Gabriel Silva, is now one step ahead of the competition by introducing a bill that could turn Bitcoin into a legal currency in Panama while also creating incentives for crypto businesses. The congressman wants to turn Panama into a hub for entrepreneurship and technology and sees crypto as a competitive advantage for his country.
Ethereum staking merges with institutional security.
Ethereum (ETH) is undergoing its transition to a Proof-of-Stake (PoS) consensus under ETH 2.0, offering investors a new passive income source with attractive yields paid in crypto.
Currently, investors can stake multiples of up to 32 ETH while generating yearly yields within the crypto ecosystem between 6.5% and 8%. Ethereum’s 2.0 transition will increase the pool of eligible investors to the staking trend, while institutional players like Sygnum can support investors in this journey with institutional-grade security.
Hedge funds becoming more bullish on crypto.
A new survey polling 100 CFOs from worldwide hedge funds predict their crypto holdings to surpass $310 billion under management in five years. The new figures could represent about 7% of total assets by hedge funds, while 17% of participants reveal that they expect to have more than 10% of their portfolio in crypto. The survey by Intertrust also shows the predominance of US funds holding more crypto at an average of 10.6%, while European counterparts expect to own less (6.8%).
The Bitcoin mining landscape shifts amid energy claims.
Bitcoin’s energy debate continues while most analysis highlighting the trade-off between the value of the Bitcoin network for society and its energy needs. A recent analysis reveals that Bitcoin only uses about 2% of the entire carbon emission by the world’s military complex. At the same time, main Chinese hubs banned Bitcoin mining, with US states (e.g., Miami, Texas, Wyoming) offering incentives (e.g., cheaper electricity) and promoting renewable energies for Bitcoin mining.
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