The market is not doing much better, but there are several developments that point to good medium and long-term prospects. DappRadar has launched a blockchain agnostic staking token, while Japan’s FSA could soon allow trust banks to offer crypto custody services.

Highlights:

  • Coinbase has been selling transaction tracking tools to the United States Immigration and Customs Enforcement (ICE). The exchange says that all info is publicly available.
  • Crypto hedge fund Three Arrows Capital has filed for Chapter 15 bankruptcy in the Southern District of New York.
  • DappRadar and LayerZero have launched the staking token RADAR, which is blockchain-agnostic.
  • Circle CEO Jeremy Allaire has said that the USDC issuer is in its strongest financial position ever.
  • Japan’s Financial Services Agency could soon allow trust banks in the country to act as crypto custodians.

This Week in Crypto

Coinbase Selling Transaction Data to ICE

Coinbase stirred up some controversy last week after it was revealed that the exchange was selling transaction tracking tools to the United States Immigration and Customs Enforcement (ICE) agency. The exchange has sold similar software to multiple U.S. government agencies, and it is generally keen on working with the government to ensure no illicit activity takes place.

The information being recorded include historical geo-tracking data, though details on the specifics were scarce. In response to some of the criticism that came from the crypto community, a Coinbase spokesperson said that the software uses data that is publicly available and does not include personally identifiable information.

3AC Files for Bankruptcy

Crypto hedge fund Three Arrows Capital filed for bankruptcy, putting an end to the many rumours that suggested that the company was in dire financial straits. 3AC filed for Chapter 15 bankruptcy in the Southern District of New York, a development that follows the ordering of a local branch to enter into liquidation by a court in the British Virgin Islands.

Among the company’s creditors were Deribit and Blockchain.com, which pushed for the hedge fund’s liquidation. The bankruptcy filing is a sad end to what was protracted reporting of the company’s troubles, and now 3AC joins several others in collapsing from the market crash.

DappRadar and LayerZero Launch Cross-Chain Staking Token

DappRadar and interoperability protocol LayerZero have launched a new token, one that focuses on allowing cross-chain staking across multiple networks. The token will be compatible with Ethereum Virtual Machine compatible networks and is intended to reduce fees and open up staking to more individuals.

The RADAR token, as it is called, will let users claim rewards on any chain, with the APR remaining the same across all chains. DappRadar says that the RADAR token will play a large part in its “Contribute2Earn” ecosystem.

Circle Says It's in Its Strongest Financial Position Ever

The CEO of USDC issuer Circle, Jeremy Allaire, has offered statements on the strength of the company, saying that it was “in the strongest position it has ever been in financially.” Allaire is reassuring the crypto community, which is understandable given the collapse of the Terra ecosystem and the UST stablecoin.

Circle has been making a heavy push into being more transparent, and Allaire pointed to several posts on transparency, audits, liquidity, and development. He reminded the crypto community that USDC reserves are regulated and have been examined by regulators and assurance firms.

Japanese Trust Banks Could Soon Be Allowed To Become Crypto Custodians

Japan is making inroads as far as crypto adoption is concerned, with the Financial Services Agency (FSA) poised to allow banks to become custodians of crypto. The FSA is conducting a month-long public commentary period and could make a move if all goes well.

The idea is to let trust banks handle crypto assets, strengthening investor protection and deregulating the trust banks. The law could come into effect in Autumn this year at the earliest, which would be very fast indeed by any standard.

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