DeFi DeBrief #6 | Wall Street embraces crypto 🗽

TL;DR:

• Wall St. firms launch crypto exchange
• Merge drops global energy usage by 0.2%
• DeFi lender opens doors to institutions

Onwards 👇

TAKE NOTE

Schwab, Fidelity launch EDX Markets 💹

Wall Street heavyweights Charles Schwab, Fidelity, and Citadel Securities have announced the launch of a new cryptocurrency exchange, EDX Markets, another sign that major financial firms are not worried about crypto winter.

The exchange will have Jamil Nazarali, a former senior executive at Citadel Securities, as CEO. And platform investors include well-known VCs, like Sequoia Capital and Paradigm, proving this is no gimmick.

Wall Street knows the crypto freeze won’t last forever.

Why should you care?

Despite a challenging year, crypto remains a $1 trillion asset class. There are over 300 million participants in the ecosystem, with pent-up demand waiting in the wings, and EDX Markets could be a bellwether for institutions.

The platform’s high compliance and security standards will meet the needs of retail and institutional investors alike, paving the way for many more market entrants.

Merge one of ‘biggest decarbonisation events ever’ 🌿

One of the leading arguments against blockchain technology focuses on its energy consumption, so the fact The Merge helped Ethereum eliminate 99.99% of its carbon footprint overnight is significant.

Ethereum’s move to Proof of Stake (PoS) lowered global energy consumption by 0.2% in what might be one of the biggest decarbonisation events in history, with the chain now producing less carbon dioxide per year than a few hundred U.S. households.

IN THE HEADLINES

Compound eats into institutional crypto loans pie 🥧

Leading DeFi lending platform Compound will add an institutional borrowing service, accepting bitcoin and ether as collateral against stablecoin loans. The institutions will pay interest, generating even more yield for Compound’s stablecoin accounts.

The protocol’s transparency will add an interesting layer to the DeFi market, allowing the public to see the scale of institutional positions on Compound.

Five short reads catching our eye this week:

1. Norway builds prototype CBDC on Ethereum
2. But CBDCs might not be your friend, here’s why
3. South Korea asks Interpol to issue red notice for Do Kwon
4. Inflation sledgehammer could knock crypto prices lower
5. Play-to-earn Bitcoin Solitaire launches on mobile

TEMPERATURE CHECK 🔥

• BTC: $18,867.16 (7.08%, 7 days)
  
• ETH: $1,323.34 (17.88%, 7 days)
• TVL in DeFi: $53.86bn
• Fear & Greed: 23 (extreme fear)

*Data last updated at 08:00 on 21st September.

TWEET CHECK 🐦

“The merge will reduce worldwide electricity consumption by 0.2%” – @drakefjustin

— vitalik.eth (@VitalikButerin) September 15, 2022

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