FTX, a bankrupt crypto exchange, has requested the approval of the U.S. bankruptcy court in Delaware to sell trust assets valued at approximately $744 million. The assets include funds from Grayscale and Bitwise, and the sale would enable the estate to make dollarized distributions to creditors. The proposed sale is expected to expedite the process and reduce costs. The trust assets consist of five Grayscale Trusts worth around $691 million and one trust managed by Bitwise valued at $53 million. It is worth noting that Grayscale and CoinDesk are both subsidiaries of Digital Currency Group (DCG).
XRP, the cryptocurrency associated with Ripple, experienced a significant surge in the past 24 hours, outperforming major cryptocurrencies such as Bitcoin and Ethereum. Its price rose by over 11% before retracing slightly on Monday. Trading volume also increased from $1 billion to $2 billion during this period. At the time of writing, XRP was trading at 69 cents and had become the fourth-largest token by market capitalization, surpassing BNB. The rise in prices was mainly driven by spot trading, as liquidations on XRP-tracked futures reached approximately $4.4 million. This suggests that high leverage may have played a role in boosting prices.
The Bank of England (BOE) and the Financial Conduct Authority (FCA) have released discussion papers outlining their plans to regulate stablecoins and the wider crypto sector. The BOE will focus on regulating “systemic stablecoins” that have the potential to disrupt financial stability due to their wide circulation. On the other hand, the FCA will oversee the broader crypto sector. These proposals come in response to the increasing interest and concerns surrounding stablecoins, particularly after the collapse of Terraform Labs, a stablecoin empire, and the plans of tech giants like Facebook (now Meta) and PayPal to issue stablecoins. Other major jurisdictions, including the European Union and Japan, have also been working on finalizing their regulatory frameworks for stablecoins.
The chart of the day illustrates the fluctuations in the yield on the one-year U.S. Treasury note since November 2022. On Friday, the yield reached a 3.5-month low of 5.28%, signaling a bearish trend reversal. This decline indicates that the market is anticipating rate cuts in the next 9-12 months, leading to increased demand for bonds and equities. According to Blockware Solutions, this shift in sentiment has contributed to the resurgence in bond and equity markets.