Digital Asset

Marathon Digital: Deposits held at Signature Bank are secure and available

The company disclosed that it has approximately $142 million in cash deposits at Signature Bridge Bank, which was set up by the FDIC after the shutdown of Signature Bank.

Crypto mining firm Marathon Digital Holdings has assured investors that the firm’s cash deposits at Signature Bank are secure and available for use as of March 13.

In a statement following the closure of New York’s Signature Bank, Marathon disclosed that it has approximately $142 million in cash deposits at Signature Bridge Bank.

The Signature Bridge Bank was set up by the United States Federal Deposit Insurance Corporation to manage customer accounts at the recently shuttered Signature Bank. The bridge bank is aimed at ensuring the flow of funds is not interrupted while the regulator searches for a buyer to acquire the assets of Signature Bank.

Marathon also confirmed that it has access to its funds for treasury management purposes, and is conducting its usual business transactions and paying all invoices as usual. Moreover, Marathon still holds over 11,000 Bitcoin (BTC), which the company views as a financial asset that provides flexibility beyond the conventional banking system.

The company also clarified that it has no direct business ties with Silicon Valley Bank, which shut down on March 10. 

Signature Bank, a crypto-friendly bank based in New York, was closed down on March 12 and taken over by the New York Department of Financial Services.

The Federal Reserve said on March 12 that the decision to close the bank was made in collaboration with the FDIC to protect the U.S. economy and bolster public confidence in the banking system.

Related: Gemini says no funds at Signature Bank backing GUSD

Former U.S. Representative and Signature Bank board member Barney Frank has since suggested that the bank was closed to send an anti-crypto message, a March 13 CNBC report revealed.

According to Frank, there was no indication of problems at the bank beyond a deposit run of over $10 billion, which he attributed to contagion from the fallout of Silicon Valley Bank.

Signature Bank’s shutdown makes it the third bank with ties to crypto to collapse in a week, following the closure of Silicon Valley Bank and Silvergate.

Nigerian president-elect aims to use blockchain technology in the banking sector

The Nigerian president-elect wants to review existing SEC digital asset regulations to stimulate economic growth.

Nigerian President-elect Bola Tinubu has recently released a manifesto that, if implemented, would enable the use of blockchain technology and cryptocurrencies in the nation’s banking and finance sector.

The manifesto suggests reviewing existing Nigerian Security Exchange Commission (SEC) regulations on digital assets to make them more business-friendly. The new regulation provides a framework for regulating digital assets like cryptocurrencies and other digital tokens in Nigeria.

The suggested regulations would require digital asset companies to register with the SEC and mandate that all digital asset offerings and investments comply with SEC regulations.

Nigeria’s President-elect, Bola Tinubu.

In the manifesto, Tinubu said: “We will reform the policy to encourage the prudent use of blockchain technology in banking and finance, identity management, revenue collection and use of crypto assets. We will establish an advisory committee to review SEC regulation on digital assets creating a more efficient and business-friendly regulatory framework.”

Some cryptocurrency enthusiasts have criticized existing regulations for lacking provisions allowing crypto users to transact with their local banks.

The published paper also aligns with the Central Bank of Nigeria’s (CBN) eNaira — the country’s central bank digital currency — and plans to expand the adoption of the currency, which has not lived up to expectations.

Related: Nigeria revisits its payments landscape amid sluggish eNaira adoption

The government hopes the proposed reform to SEC regulations will help attract more investors in the digital and economic sectors and stimulate economic growth.

Tinubu said, “We will also encourage the CBN to expand the use of our digital currency, the eNaira.”

The manifesto’s release coincides with Nigerians’ increasing crypto adoption, which is among the highest in the world.

Nigerians’ interest in crypto is reflected in the CBN’s milder position toward stablecoins. The bank recently published a research report titled “Nigeria’s Payment System Vision 2025,” exploring the creation of a new framework to introduce a stablecoin in Nigeria.

Hermès asks court to halt sales of MetaBirkin NFTs following recent jury decision

The court filing from Hermès on Friday stated that Rothschild had continued to promote his NFTs even after a nine-member jury found Rothschild liable for trademark infringement, trademark dilution, and “cybersquatting.”

Hermès International, the French luxury fashion house, has requested a Manhattan federal court to block artist Mason Rothschild from marketing or owning his “MetaBirkin” non-fungible tokens (NFTs) following a recent jury decision that found Rothschild had violated Hermes’ trademark rights in its famous Birkin bags, as reported by Reuters. 

According to the report by Reuters, the court filing from Hermes on Friday stated that Rothschild had continued to promote his NFTs even after a nine-member jury found Rothschild liable for trademark infringement, trademark dilution, and “cybersquatting,” awarding Hermès $133,000 in damages. In light of this, the luxury company has requested the court to mandate that Rothschild stop using the “Birkin” trademark and hand over the MetaBirkins website, the NFTs he still possesses, and his earnings from the token sales since the trial to Hermès. 

Recent court filing by Hermès revealed that Mason Rothschild is still receiving a 7.5% royalty for each sale of MetaBirkin NFTs and has been promoting them on his website and social media accounts even after the verdict in February.  Hermès also added that a permanent injunction was necessary to stop Rothschild’s behavior, as he has “shown that he cannot be trusted” and made “repeated false statements” in business dealings and at trial.

Hermès shared:

Rothschild has continued acting as he has since November 2021 — brazenly violating Hermès’s intellectual property rights.

Rothschild’s lawyer, Rhett Millsaps, stated on Monday that the filing was a “gross overreach by Hermes and an attempt to punish Mr. Rothschild because they don’t like his art.” Millsaps further added that they would oppose Hermès’ motion this week. 

Related: Intellectual property has an awkward fit in Web3 decentralization — Lawyers

As previously reported by Cointelegraph on Feb 8,a jury trial in the Southern District of New York issued a verdict in the lawsuit between Hermès and MetaBirkins. The court found that artist Mason Rothschild had infringed on the trademark protections of the Hermès brand. The 100 NFTs of “Metabirkins” created by Rothschild were deemed to not constitute artistic commentary, and therefore did not receive protection under the First Amendment of the United States Constitution.

Soulbound tokens power new identity solution on Celo blockchain

Masa Finance announced its deployment on the Celo blockchain with its new “Prosperity Passport” identity solution for users.

A central focus for many in the Web3 community has been improving identity solutions available to consumers. Last year, the emergence of soulbound tokens (SBT) introduced a new way for users to define themselves. 

Although the SBT hype quieted over the last months, they have not disappeared off the scene. On March 1, the SBT protocol Masa Finance announced that it will deploy on the carbon-negative Celo blockchain to create a new identity solution. 

More than 10 million wallets active in the Celo ecosystem will be able to generate a Masa “prosperity passport.” This new Web3 identity solution allows users to mint a variety of SBTs related to their digital life, such as an authenticated user verification SBT, a credit score SBT, a community reputation SBT and a “.celo” domain name SBT.

Calanthia Mei, co-founder of Masa Finance, said nonfungible tokens (NFTs) were the first pioneers for Web3 user customization, and SBTs are the next breakthrough technology.

“Web3 has a trust issue, and SBTs represent a composable and scalable way to build a trust layer between projects and users, and users amongst each other.”

The prosperity passport solution also gives access to other utilities from Celo projects, which have integrated the technology, such as micro-loans and universal basic income.

Mei believes that the identity solutions provided by SBTs will help onboard the next 1 billion authentic users into Web3:

“We see SBTs as a way to build bridges for global economies, industries and users to merge with Web3 and truly usher in the new economy.”

According to the announcement, the protocol already has 250,000 Masa Soulbound Identities minted, along with nearly 300,000 Masa .Soul Names minted.

Related: What is decentralized identity in blockchain?

At the end of 2022, MetaMask Institutional, Cobo and Gnosis DAO all teamed up to create an SBT project to bring exclusivity and identity verification to its users. Back in December, the Japanese financial firm Sumitomo Mitsui also revealed it is looking into SBTs for social reasons.

These new digital assets are thought to be a possible solution to future digital identity in the metaverse, along with digital citizenship.

While not directly mentioning digital assets, on Feb. 9, the European Union mentioned using zero-knowledge proofs for future digital IDs.

FSB, IMF and BIS papers to set global crypto framework, says G20

A series of recommendations and papers setting standards for a global crypto regulatory framework will be released by the institutions in July and September.

The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will deliver papers and recommendations establishing standards for a global crypto regulatory framework, the group of the 20 biggest economies of the world — collectively known as G20 — announced on Feb. 25.

According to a document summarizing the outcomes of the meeting with finance ministers and central bank governors, the FSB will release by July recommendations on the regulation, supervision and oversight of global stablecoins, crypto assets activities and markets.

India’s finance minister, Nirmala Sitharaman, during FMCBG meeting in Bengaluru. Source: Ministry of Finance

The next guidance is expected for September, when the FSB and the IMF jointly should submit “a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets.” In the same month, the IMF will also report on the “potential macro-financial implications of the widespread adoption” of central bank digital currencies (CBDCs). According to the G20 statement:

“We look forward to the IMF-FSB Synthesis Paper which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets.”

The BIS will also submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets. This report’s deadline is not mentioned in the document. A G20 financial task force will also look at the use of crypto assets to fund terrorist activities.

The announcement came after two days of official meetings in Bengaluru, India. In the first financial meeting under India’s presidency, the group addressed key financial stability and regulatory priorities for digital assets, Cointelegraph reported.

During the event, United States Treasury Secretary Janet Yellen said it was “critical to put in place a strong regulatory framework” for crypto-related activities. She also noted that the country is not suggesting an “outright banning of crypto activities.“ Speaking to reporters on the sidelines of the event, IMF managing director Kristalina Georgieva stated that banning crypto should be an option for G20 countries.

Web3 Domain Alliance expands with 51 new members

The Alliance said it aims to focus on consumer protection, preventing naming collisions, fair and open use of intellectual property in the industry, and interoperability of blockchain naming systems, among other topics.

The Web3 Domain Alliance, a member-led coalition that aims to provide a standardized framework for Web3 naming services, has announced 51 new members, including Blockchain.com, Rarible, Wyre, Bitdegree, WazirX, and Klever. These firms will help promote the development of the Web3 naming industry and the functioning of Web3 domain registries, according to the company

The Alliance is a member-led coalition focused on improving the technological and public policy environments for users of Web3 naming services. With the addition of new members, the Alliance said that it will focus on consumer protection, preventing naming collisions, fair and open use of intellectual property in the industry, and interoperability of blockchain naming systems, among other topics. The collective goal of the alliance is to champion standards in the Web3 domain industry, thereby, promoting innovation and creating a secure environment.

In response to the growing interest in the Web3 domain industry, evidenced by the reported creation of more than 3.4 million domains in 2022, the Web3 Domain Alliance was established in November 2022 to set standards for the blockchain naming sector. The group plans to engage in discussions with the Internet Corporation for Assigned Names and Numbers (ICANN) to enhance their knowledge and recognition of Web3 Top Level Domains (W3TLDs).

Sandy Carter, SVP and Channel Chief of Unstoppable Domains shared: “As a founding member of the Web3 Domain Alliance, we’re honored to work alongside our new co-members to unlock potential in the Web3 domain space.” “Together, we’ll build a Web3 domain space where new ideas and innovation can flourish and where more people can own their digital identity,” she added. 

Related: 1inch wallet users get domain names with Unstoppable Domains partnership

In November 2022, Cointelegraph reported that Unstoppable Domains launched the Web3 alliance which sought to create self-regulating boards. Initial participants of the alliance included Bonfida, Tezos Domains, Polkadot Name System, Hedera, Syscoin, and Klaytn Name Service. 

In 2022, Unstoppable Domains raised $65 million in a Series A funding round, boosting its valuation to $1 billion, following the NFT boom and the popularity of digital identity profiles. 

Siemens issues €60M digital bond on a public blockchain

Siemens shared that the process of issuing digital bonds is much faster and more efficient than traditional bond-issuing methods.

German engineering and technology giant Siemens has become one of the first companies in Germany to issue a digital bond on a public blockchain, worth €60 million, with a maturity of one year, in accordance with Germany’s Electronic Securities Act.

According to the announcement, the bond was sold directly to investors such as DekaBank, DZ Bank, and Union Investment, without the need for central clearing and paper-based global certificates. Siemens noted that the process enabled transactions to be executed much faster and more efficiently than traditional bond-issuing methods. 

Siemens emphasized the benefits of using digital bonds over traditional bond-issuing methods in its announcement. According to the company, “Issuing the bond on a blockchain offers a number of benefits compared to previous processes. For instance, it makes paper-based global certificates and central clearing unnecessary. What’s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.”

Although the transaction was completed using classic payment methods because the digital euro was not yet available at the time of the transaction, it was still completed in just two days. Siemens aspires to position itself as a pioneer in the ongoing development of digital solutions for the capital and securities markets. 

Peter Rathgeb, Corporate Treasurer at Siemens AG, shared:

“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany.” 

Related: Israel kicks off live tests for its tokenized digital bonds

Over the past few years, Siemens has been experimenting with blockchain technology. In October 2020, Cointelegraph reported that a blockchain-based energy trading platform, Pebbles, backed by German tech giant Siemens held a virtual demo of its blockchain-based marketplace platform for optimized electricity trading. 

Additionally, in July 2019, Siemens Considered Using Blockchain Tech for a Carsharing program through Siemens Mobility — one of Siemens’ subsidiaries.

Siemens issues $64M digital bond on a public blockchain

Siemens shared that the process of issuing digital bonds is much faster and more efficient than traditional bond-issuing methods.

German engineering and technology giant Siemens has become one of the first companies in Germany to issue a digital bond on a public blockchain. It’s worth 60 million euros ($64 million) and has a maturity of one year, in accordance with Germany’s Electronic Securities Act.

According to the Feb. 14 announcement, the bond was sold directly to investors such as DekaBank, DZ Bank, and Union Investment, without the need for central clearing and paper-based global certificates. Siemens noted that the process enabled transactions to be executed much faster and more efficiently than traditional bond-issuing methods. 

Siemens emphasized the benefits of using digital bonds over traditional bond-issuing methods in the announcement. According to the company, “issuing the bond on a blockchain offers a number of benefits compared to previous processes. For instance, it makes paper-based global certificates and central clearing unnecessary. What’s more, the bond can be sold directly to investors without needing a bank to function as an intermediary.”

Although the transaction was completed using classic payment methods because the digital euro was not yet available at the time of the transaction, it was still completed in just two days. Siemens aspires to position itself as a pioneer in the ongoing development of digital solutions for the capital and securities markets. 

Siemens AG corporate treasurer Peter Rathgeb sa:

“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. Thanks to our successful cooperation with our project partners, we have reached an important milestone in the development of digital securities in Germany.” 

Related: Israel kicks off live tests for its tokenized digital bonds

Over the past few years, Siemens has been experimenting with blockchain technology. In October 2020, Cointelegraph reported that Pebbles, a blockchain-based energy trading platform backed by Siemens, held a virtual demo of its marketplace for optimized electricity trading. 

Additionally, in July 2019, Siemens considered using blockchain technology for a carsharing program through Siemens Mobility, one of its subsidiaries.

Bakkt sunsets its consumer-facing crypto app to focus on B2B solutions

The Bakkt app, which brought together crypto tokens, loyalty points and gift cards, is expected to cease operations on March 16.

Digital asset platform Bakkt has announced its plans to shift its focus to B2B technology solutions. The company said it will soon be sunsetting its consumer-facing app, which was designed to give users the ability to utilize their digital assets in different ways. The app, launched in March 2021, offered a user-friendly experience that brought together various digital assets, including cryptocurrencies, loyalty points and gift cards.

Despite the discontinuation of its consumer-facing app, current Bakkt App users will still have access to their crypto and cash holdings through a new web-based platform, available on all devices. According to Bakkt, users can still check their crypto balances and obtain transaction reports for tax purposes. The app is expected to cease operations on March 16. 

Bakkt president and CEO Gavin Michael emphasized the company’s commitment to providing the best solutions to their partners and clients, saying, “The discontinuation of the app ensures we are supporting the relationship our partners and clients have with their customers.” He added that the company is focusing its investment on its core solutions that have product-market fit and are positioned for rapid scaling.

Bakkt aims to continue providing businesses with crypto and loyalty experiences for its customers through SaaS and API solutions on a secure and compliant platform.

Related: The history and evolution of the fintech industry

In November, Cointelegraph reported that Bakkt had agreed to acquire Apex Crypto for a price of $200 million. Apex Crypto is a turnkey platform for integrated crypto trading, serving over 5 million customers through more than 30 fintech partners. The upcoming acquisition further reinforces Bakkt’s B2B2C (business-to-business-to-consumer) strategy and its goal of bringing crypto products to a broader client base.

The integration of Apex Crypto into Bakkt’s operations is expected to enhance the cryptocurrency firm’s offerings and reach a wider audience through fintech firms, trading platforms and neo-banks. This collaboration aims to drive the development and innovation of crypto products such as staking, transfers, and NFTs, ultimately leading to an increase in revenue and diversity for Bakkt as it expands its services.

Coincover secures $30M in funding to strengthen digital asset security

The funding round was led by Foundation Capital, with follow-on investment from CMT Digital.

London-based digital asset protection firm Coincover has secured $30 million in a funding round led by Foundation Capital with a follow-on investment from CMT Digital.

According to Coincover’s announcement, the funds will be used to scale its operations, drive recruitment, develop new products and form partnerships to help strengthen the security of the cryptocurrency ecosystem, thereby providing even more comprehensive protection to businesses and individuals holding digital assets.

Coincover was founded in 2018 and launched in 2019 with the aim of providing trust to the digital asset industry. The company already works with over 300 businesses, including exchanges, wallets, hedge funds, family offices, banks and a number of digital asset custodians.

Coincover intends to tackle the security concerns plaguing the digital asset industry by offering businesses a solution that guards against both cyber threats and human mistakes. Coincover aims to lay the foundation for a more mature and trustworthy sector by reducing scams and fraudulent activities. The company’s offerings also claim to not only reduce the risk of moving and storing cryptocurrency but also change the perception of digital assets and foster increased confidence in the industry.

Coincover co-founder and CEO David Janczewski shared:

“At Coincover, we’re proud to prevent users from losing access to their cryptocurrency, whether that be through a mistake or the misfortune of being targeted by malicious online hackers. […] Through this new funding, we can supercharge our service for all existing and future customers — building a better and more mature digital asset ecosystem in the process.”

Related: VC Roundup: ZK proofs, DeFi protocol and longevity DAO attract investment

Despite a prolonged bear market, Web3 projects continue to raise capital to build and innovate within the ecosystem.

On Jan. 25, Cointelegraph reported that Injective launched a $150 million ecosystem fund to boost decentralized finance and Cosmos adoption. The ecosystem group was backed by a large consortium of venture capital and Web3 firms, including Pantera Capital, Kraken Ventures, Jump Crypto, KuCoin Ventures, Delphi Labs, IDG Capital, Gate Labs and Flow Traders. According to Injective, the consortium is the largest assembled within the broader Cosmos ecosystem.