• BSP approves pilot for PHPC, a Peso-backed stablecoin, in collaboration with Coins.ph.
• Sandbox testing to evaluate PHPC’s real-world performance and impact on local fiat ecosystem.
• Transition to real-world usage subject to final evaluations and approvals by central bank.

The digital currencies landscape in the Philippines is set for a major shift after the country’s central bank, Bangko Sentral ng Pilipinas (BSP), granted approval for the commencement of a pilot program for a Philippine Peso-backed stablecoin (PHPC).

BHP’s move signals a progressive step towards exploring the potential of blockchain technology and stablecoins in the nation’s financial ecosystem.

Sandbox testing to evaluate PHPC’s viability

The pilot program, conducted within the framework of BSP’s Regulatory Sandbox, will see the collaboration between the central bank and crypto wallet provider Coins.ph.

#ICYMI: #CoinsPH has been granted @bangkosentral (BSP) approval to pilot PHPC, a Philippine Peso stablecoin

Learn more about this milestone and the pilot here: https://t.co/zpQQvr7Pv9 pic.twitter.com/a2jWB8mSeJ

— Coins.ph (@coinsph) May 9, 2024

The primary objective of the pilot program is to assess the real-world performance of the PHPC and its potential impact on the local fiat ecosystem.

Under the terms of the pilot, Coins.ph will maintain cash reserves in pesos equivalent to the circulating supply of PHPC within the sandbox environment, ensuring a stable 1:1 pegging of the digital currency to the Philippine peso.

BSP’s choice Coins.ph is strategic. Being a licensed crypto service provider in the Philippines, Coins.ph dominates Philippines crypto space, especially after its partnership with Circle in 2023 for USDC remittances in the Philippines. It was the first to add BRC-20-support in the Philippines.

The sandbox testing phase is designed to explore various use cases for PHPC, including domestic and cross-border payments, trading with other virtual assets, hedging against market volatility, and providing collateral and liquidity in decentralized finance (DeFi) applications.

These trials will provide valuable insights into PHPC’s practicality and effectiveness in facilitating financial transactions and promoting financial inclusion in the Philippines.

Transitioning from sandbox to real-world usage

While the pilot program marks an important milestone in the development of PHPC, its transition from a sandbox environment to real-world usage is contingent upon the results of the testing phase and final evaluations by the central bank.

According to local regulations, the duration of the testing period can range from three to 12 months, depending on the complexity of the project. However, no official deadline has been disclosed for the conclusion of the stablecoin experiment.

The current initiative to launch a Peso-backed stablecoin builds upon previous efforts to introduce stablecoins pegged to the Philippine peso, such as the PHX launched by UnionBank in 2019. UnionBank’s PHX, aimed at driving greater financial inclusion, is also redeemable for pesos and implemented on the bank’s i2i platform.

The emergence of PHPC and other stablecoin projects reflects the growing recognition of digital currencies as viable tools for enhancing financial services and expanding access to digital payments in the Philippines.

• Tim Draper’s VC firm Draper Associates led the $3.5 million seed round for Zest Protocol.
• Binance Labs, Trust Machines and Bitcoin Frontier Fund among key participants.

Billionaire Tim Draper has led a $3.5 million seed round investment in the on-chain Bitcoin lending platform Zest Protocol.

Other than the billionaire’s venture capital firm Draper Associates, the round also attracted the participation of Binance Labs, Trust Machines and Flow Traders.

Bitcoin Frontier Fund, Gravity Fund, Primal Capital, Hyperithm, Miton Crypto, Tykhe Block Ventures, Elixir Capital also participated.

Per details published in a blog post on Monday, Zest will use the funds to expand its decentralised, peer-to-peer lending business.

On the platform, users can lend their Bitcoin (BTC) or borrow against it. With this, users have an opportunity to generate yield or passive income without having to sell their Bitcoin.

Growing the Bitcoin DeFi ecosystem

To bring the product to the community, Zest Protocol has tapped into Bitcoin layer 2 network Stacks. The project leverages Stacks’ Nakamoto upgrade to allow for asset bridging asset, unlocking access to DeFi on Bitcoin.

Tycho Onnasch, founder of Zest Protocol, commented:

“Unlike on Ethereum, the creation of basic DeFi primitives such as liquidity pools isn’t possible on Bitcoin L1. The Stacks sBTC upgrade is set to be a watershed moment for Bitcoin DeFi, which is what it was designed for from the beginning.”

Users with sBTC can fund their Zest Protocol balances with sBTC to gain access to lending or other yield-generating features.

• Digital assets investment products saw $130 million in inflows, the first after four weeks of outflows.
• Bitcoin remains above $62k and saw inflows of $144 million this past week.

As Bitcoin shows fresh resilience above $62,000, latest market data reveals that digital asset investment products recorded inflows for the first time in over a month last week.

On Monday, digital assets manager CoinShares published its weekly report on crypto investment products.

The details showed the industry saw $130 million in inflows for the week ending May 10. It’s the first time the metric reads positive since the first week of April – a run of four weeks of outflows.

Notably, Bitcoin saw inflows of $144 million, while short-Bitcoin ETPs recorded outflows of $5.1 million.

The majority of the inflows were seen in the US, with $135 million. Hong Kong saw $19 million in inflows. Elsewhere, Canada and Germany recorded outflows of $20 million and $15 million respectively.

ETP volumes remain low

While the week saw inflows overall, CoinShares’s head of research James Butterfill wrote in the company blog that ETP volumes have continued to decline.

For instance, the market saw ETP volumes of $8 billion last week, while it averaged $17 billion in April.

“These volumes highlight ETP investors are participating less in the crypto ecosystem at present, representing 22% of total volumes on global trusted exchanges relative to 31% last month,” Butterfill noted.

• Juliano steps down as dYdX CEO, Crnkovic-Rubsamen takes over.
• The transition marks Juliano’s move to Chairman and President roles.
• dYdX experiences surge in activity amid market rebound.

In a significant leadership transition within the crypto space, Antonio Juliano, the founder and long-time CEO of dYdX, has announced his decision to step down from his role.

After seven years of steering the decentralized exchange, Juliano is pivoting to the position of Chairman & President, handing over the reins to Ivo Crnkovic-Rubsamen, the former chief strategy officer of the exchange.

Julioano’s stepping down as dYdX CEO

Juliano’s departure from the CEO position was revealed through a post on May 13, where he shared his intentions to shift his focus towards broader strategic initiatives within the company.

In his statement on X, Juliano expressed confidence in Crnkovic-Rubsamen’s capabilities, emphasizing his preparedness to lead dYdX into its next phase of growth.

Crnkovic-Rubsamen, a seasoned trader with a background in finance, has been an integral part of dYdX since 2022, bringing a wealth of experience to his new role.

Reflecting on his decision, Juliano highlighted his belief in nurturing leadership within the organization, stating, “As I realized I did not need to be CEO, I worked to shepherd other leaders at the company on their own leadership journeys, until one of them was ready to run the company himself.” This move underscores Juliano’s commitment to fostering talent within dYdX and ensuring a smooth transition of leadership.

Despite stepping down as CEO, Juliano’s future plans remain uncertain. He hinted at exploring new opportunities but admitted to having no concrete plans for his next career move.

Before founding dYdX, Juliano held positions as a software engineer at notable tech companies such as Coinbase, Uber, and MongoDB, indicating a diverse background that could lead him in various directions.

dYdX witnesses a surge in activity

The leadership transition comes at a pivotal moment for dYdX, as the decentralized exchange experiences a surge in activity amid a broader rebound in the crypto markets.

Data from DefiLlama reveals impressive metrics for dYdX, with a market capitalization exceeding $1.1 billion and over $465 million in total value locked. Furthermore, the exchange’s annualized revenue stands at $35.4 million, underscoring its financial viability and market relevance.

Recent developments within the dYdX ecosystem, including the launch of its layer-1 blockchain in October 2023 and the v4 upgrade in January, have fueled heightened trading activity. These advancements, coupled with the innovative use of the DYDX token for network transactions, have positioned dYdX as a leading player in the decentralized finance (DeFi) space.

As Ivo Crnkovic-Rubsamen assumes the role of CEO, he inherits a thriving platform poised for further expansion and innovation.

With Juliano’s continued involvement as Chairman & President, dYdX remains well-positioned to navigate the evolving landscape of decentralized finance and capitalize on emerging opportunities in the crypto space.

• Alexey Pertsev, Tornado Cash developer, found guilty of laundering $1.2B in the Netherlands.
• Despite Tornado Cash being non-custodial, Pertsev sentenced to over 5 years in prison.
• Verdict sparks debate on accountability of open-source developers in crypto space.

Alexey Pertsev, the founder of the cryptocurrency mixing protocol Tornado Cash, has been convicted of money laundering by Dutch judges at ‘s-Hertogenbosch court on May 14.

The ruling comes after Pertsev’s arrest in the Netherlands in August 2022. It marks a pivotal moment in the intersection of cryptocurrency technology and legal accountability.

Five years and four months in prison

Despite Tornado Cash being a non-custodial crypto mixing protocol, wherein funds passing through the platform are not held or controlled by it, Pertsev has been sentenced to five years and four months in prison for allegedly laundering a staggering $1.2 billion worth of illicit assets.

Tornado Cash gained notoriety for its ability to enhance privacy and fungibility in cryptocurrency transactions by obfuscating the origin of funds. However, its association with illicit activities led to its blacklisting by the United States government, precipitating Pertsev’s legal woes.

Despite the defence’s argument that Pertsev cannot be held accountable for the actions of Tornado Cash users due to the protocol’s decentralized nature, the court’s decision underscores the increasing scrutiny faced by developers in the crypto space.

The Tornado cash developer has a 14-days appeal window

Pertsev’s legal representatives now have 14 days to appeal the court ruling, as stakeholders across the cryptocurrency ecosystem closely monitor the outcome of this landmark case.

The verdict not only has immediate ramifications for Pertsev, but also serves as a cautionary tale for developers navigating the complex legal landscape of decentralized technologies. It raises pertinent questions about the responsibility and liability of open-source code developers in the realm of decentralized finance.

While developers typically have no direct control over the use of their code, this verdict sets a precedent that could have far-reaching implications for the broader developer community.

• Christopher Giancarlo, former CFTC chief has joined Paxos board.
• Giancarlo’s advocacy for blockchain innovation aligns with Paxos’ mission for regulated solutions.
• Paxos aims to drive financial sector innovation with Giancarlo’s guidance on board.

J. Christopher Giancarlo, former chairman of the U.S. Commodity Futures Trading Commission (CFTC), has been appointed to the board of directors for Paxos, the firm that issues PayPal’s (PYUSD) stablecoin.

Giancarlo’s extensive experience in regulatory matters and advocacy for blockchain technology is expected to significantly contribute to Paxos’ strategic initiatives and further strengthen its position in the rapidly evolving digital asset market.

CryptoDad to help advance Paxos crypto advocacy and regulation

The appointment of J. Christopher Giancarlo, widely known as “CryptoDad,” to the Paxos board underscores the growing convergence between traditional finance and the burgeoning cryptocurrency sector.

With a distinguished career in regulatory oversight, including his tenure as chairman of the CFTC, Giancarlo brings a wealth of expertise to Paxos. His advocacy for blockchain technology and commitment to fostering innovation in the financial sector align well with Paxos’ mission.

Giancarlo’s involvement in the regulatory landscape has been instrumental in shaping the dialogue surrounding cryptocurrencies and blockchain technology. As the author of “CryptoDad: The Fight for the Future of Money,” he has been a vocal proponent of embracing digital innovation while ensuring appropriate regulatory safeguards are in place.

Giancarlo’s contributions to the Digital Dollar Project further demonstrate his dedication to exploring the potential of central bank digital currencies (CBDCs) and their implications for the future of finance.

Charles Cascarilla, the CEO and co-founder of Paxos, expressed enthusiasm about CryptoDad’s appointment, highlighting the alignment of their vision for advancing regulated digital asset innovation. Giancarlo himself remarked on Paxos’ leadership in regulated solutions and emphasized his honour in joining the board.

Paxos’ expansion

Paxos, renowned for its regulated stablecoins and infrastructure solutions, stands at the forefront of bridging traditional financial markets with the emerging digital asset ecosystem.

The addition of Giancarlo to Paxos’ board signals a strategic move to leverage his insights and network within the regulatory landscape.

With Paxos’ recent expansion to integrate the Solana blockchain and its ongoing efforts to enhance market infrastructure, Giancarlo’s expertise will be invaluable in navigating regulatory complexities and driving sustainable growth.

• State of Wisconsin Investment Board (SWIB) has disclosed it bought almost $100 million of BlackRock’s Bitcoin ETF $IBIT.
• The state pension disclosed the holdings in a 13F on Tuesday.
• Senior ETF analyst Eric Balchunas says these filings suggest more firms are set to buy spot Bitcoin ETFs.

A state pension has acquired a position in the spot Bitcoin ETF space, marking what a leading ETF expert says could be the beginning of a massive adoption curve.

State of Wisconsin Investment Board buys $IBIT

On Tuesday, the State of Wisconsin Investment Board disclosed it holds nearly $100 million in BlackRock’s iShares Bitcoin Trust ($IBIT). Particularly, the state’s filing showed it bought 2.4 million shares of $IBIT worth $99 million in the first quarter.

The details were part of the investment board’s 13F filing, which is a quarterly report that investment managers file with the US Securities and Exchange Commission (SEC).

13Fs disclose an investment asset manager’s US equity holdings where the assets in question are $100 million or more.

JUST IN: State of Wisconsin Investment Board discloses it holds almost $100 million of BlackRock’s spot #Bitcoin ETF. pic.twitter.com/Jdv4uKSi9J

— Bitcoin Magazine (@BitcoinMagazine) May 14, 2024

The Wisconsin Investment Board, which manages a retirement system and state investment fund among other smaller funds, also disclosed holdings in Grayscale’s Bitcoin Trust ($GBTC) ETF.

The spot Bitcoin ETF market continues to see massive institutional adoption as the sector resumes inflows after a slight lull in recent weeks. $IBIT has led with staggering numbers since its debut.

Eric Balchunas, a senior ETF analyst at Bloomberg, noted that the Wisconsin state pension manager’s move is a big one. Notably, big firms usually do not file their 13Fs so early after an ETF’s launch.

Commenting on today’s news, the ETF analyst noted:

“Normally you don’t get these big fish institutions in the 13Fs for a year or so (when the ETF gets more liquidity) but as we’ve seen these are no ordinary launches. Good sign, expect more, as institutions tend to move in herds.”

On Monday, hedge fund Bracebridge Capital filed with the SEC to reveal it holds $262 million of Ark Invest’s spot Bitcoin ETF ARKB,  and $81 million of BlackRock’s $IBIT.

Wolverine Asset Management disclosed it holds Fidelity’s $FBTC, revealing an impressive 874,000 shares.

Other recent big fish disclosures of spot Bitcoin ETF holdings include BNY Mellon, BNP Paribas and Switzerland’s largest bank UBS Group AG.

• Peter Thiel’s venture capital firm Founders Fund co-led a $45 million Series B raise for Polymarket.
• Ethereum co-founder Vitalik Buterin also backed the Series B round.
• The predictions marketplace also announced it raised $25 million in a Series A round, led by General Catalyst and Polychain.

The latest cryptocurrency news related to venture capital funding is from predictions marketplace Polymarket. 

In an announcement on Tuesday, Polymarket revealed it had raised $45 million in its series B round and $25 million in a Series A round.

The total raise of $70 million had the backing of some of the leading venture capital firms in the market. This comes as data showed crypto VC funding crossed $1 billion in April, the second-straight month the space reached the landmark figure. 

Founders Fund and Vitalik Buterin invest in Poymarket

Founder Shayne Coplan said in a post on X that Peter Thiel’s venture capital firm Founders Fund, Dragonfly and Ethereum co-founder Vitalik Buterin led the Series B round.

Meanwhile, General Catalyst, Polychain and Airbnb co-founder Joe Gebbia led the $25 million Series A funding round.

Polymarket’s successful fundraising across the two rounds comes as the predictions platform attracts more users amid the increased betting on the upcoming US presidential elections. Polymarket is also a hot marketplace for topics such as crypto, sports and current events.

Trump is pulling ahead pic.twitter.com/bXcqtWE6cE

— Polymarket (@Polymarket) May 13, 2024

Other than the US presidential election, other top trends this week include bets on spot Ethereum ETFs, the GameStop (GME) stock and Bitcoin price.

• BNB struggles below $600, facing bearish pressure and uncertainties amid the Alex Protocol Bridge incident.
• Bitbot (BITBOT) emerges as an alternative, offering institutional-grade trading on Telegram.
• Bitbot (BITBOT) token is currently in its presale stage and it is priced at $0.018 per token.

BNB price is struggling to regain momentum amidst uncertainties and the recent Alex Protocol Bridge suspicious withdrawals that rocked the BNB Smart Chain network.

Meanwhile, Bitbot emerges as a potential alternative, promising innovative features and a new token.

BNB price recovery in limbo amid Alex Protocol Bridge incident

BNB’s journey towards recovery faces hurdles as it contends with bearish signals below the $600 mark. Despite attempts to breach resistance levels at $575 and $585, the token finds itself in a precarious position.

The failure to clear the $600 resistance zone triggered a fresh decline, exacerbating concerns among investors.

Compounding the challenges is the recent incident involving the Alex protocol bridge on the BNB Smart Chain. The protocol suffered a staggering $4.3 million in suspicious withdrawals immediately after its contract underwent a sudden upgrade. CertiK, a blockchain security platform, labeled the event as a possible private key compromise, highlighting the vulnerability of decentralized networks to malicious activities.

Bitbot (BITBOT) token offers an alternative opportunity

Amidst the uncertainties surrounding BNB, Bitbot (BITBOT) emerges as a potential alternative, offering innovative solutions in the crypto trading landscape.

Bitbot is an AI Telegram trading bot designed to empower users with institutional-grade tools, enabling seamless trading experiences directly from Telegram while maintaining full control of assets. The platform’s unique features include leveraging custom RPC nodes and institutional infrastructure to outpace the competition, handling sudden influxes of traffic during popular project launches, and ensuring assets are accessible only with user permission.

Currently conducting its presale, Bitbot has raised approximately $3,408,687 out of its $3,546,000 target. With each BITBOT token priced at $0.018 during the presale stage, Bitbot presents itself as a compelling option for traders seeking a reliable and secure trading platform.

Conclusion

In the midst of bearish pressures and uncertainties surrounding BNB, Bitbot stands out as a promising contender in the crypto trading sphere. With its innovative approach and focus on providing users with robust trading tools, Bitbot offers an alternative avenue for traders to navigate the volatile market landscape.

As investors weigh their options amidst ongoing market challenges, Bitbot’s presale success and unique features position it as a potential game-changer in the crypto trading ecosystem. The platform’s commitment to security, reliability, and user empowerment sets a new standard for trading platforms, providing traders with confidence and peace of mind in their investment endeavours.