Category: Cryptocurrency

Opinion by Elena Sinelnikova, co-founder of Metis and CryptoChicks

The Underutilized Potential of Women in Web3: A Call to Action for Inclusion

As I reflect on the progress made in the crypto space, I am reminded that women are leading top crypto exchanges and earning 15% more than men, according to Pantera Capital. We have indeed come a long way. However, Web3 is still far from harnessing the full potential of its feminine community, both economically and culturally/psychologically.

The Statistics Speak for Themselves

Only about 13% of Web3 projects have female founders, and they receive merely 6% of the industry’s total funding. Web3 events – conferences, hackathons, afterparties – are primarily male-dominated. Furthermore, predators lurk around, threatening the safety and well-being of women in this space.

The Importance of Inclusion

Web3 promises inclusion and fairness for all – onboarding more women and creating safer places are necessary steps towards achieving this goal. Women comprise around 50% of the global population, have over $31 trillion in spending power, and control 85% of consumer spending in the United States. Dismissing and disempowering their leadership simply doesn’t make sense for Web3.

Breaking Down Barriers

Creating more women-centric corners in Web3 means more inclusivity and accessibility for everyone. It’s about breaking the monopoly of the hypermasculine ‘bro code’ that tends to exclude anything, or anyone, remotely feminine. The idea of a feminine frontier represents a cultural shift in Web3 – a call to build and nurture spaces where care, collaboration, empathy, and emotionality are celebrated.

The Power of Feminine Spaces

Feminine spaces emerge from the experience of facing marginalization in all shapes and sizes. Along with sisterhood, these experiences drive women to be more receptive, accepting, and giving. These qualities are also recurring concepts in any textbook definition of inclusion. That’s why diverse voices feel more heard and at home in feminine communities.

The Benefits of Inclusivity

Onboarding more women to Web3 and creating more women-centric spaces will make the industry more inclusive internally and complement its external mission of fostering inclusivity in finance. Breaking generational stereotypes is, however, as challenging as replacing legacy business structures, if not harder. Women themselves are made to feel they are inferior, let alone being told so by others.

The Power of Education and Mentorship

Statistical data showing that women-led businesses achieve significantly higher income growth or return on equity doesn’t seem to make a difference. Even the fact that companies with female leadership grow approximately twice as fast as their male-dominated counterparts fails to have the desired impact. The problem isn’t altogether rational or cognitive but rather psychological and deep-seated.

The Role of Women-Centric Communities

Women-centric communities are doing great at this. From cohorts to scholarships, they provide young, aspiring women the means to make it big in Web3. Not mere pep talk and lip service. As these female-centric communities grow, they’ll create more visibility overall for vibrant and inspiring women leading Web3’s evolution in different capacities.

A Positive Loop of Empowerment

This evolution will create a positive loop, motivating more young women to take the leap and stake their claim on emerging tech paradigms. Given the proper training and skills development – besides vision – women supported in this loop should be well-equipped to empathize with the users’ community worldwide.

Feminine Sensibilities in Web3

Web3 products and services can be more oriented toward solving real, even mundane, pains instead of fanning speculation to the moon. Feminine sensibilities will inevitably manifest themselves in Web3 codebases and technology since coding is a means of expression.

A Movement towards Inclusion

What we’re seeing now – and calling for – is a

In an effort to strengthen its position as a leading cryptocurrency financial hub, Hong Kong has proposed exempting gains from taxes for hedge funds, private equity, and family investment vehicles. This proposal, currently open for a six-week consultation, also includes exemptions for investments in private credit, overseas property, and carbon credits.

The Proposal: A Step Towards Competitiveness

According to a report by the Financial Times, the initiative aims to help Hong Kong compete with regional rivals like Singapore, which provides similar tax incentives, and Switzerland, which is renowned for its wealth management expertise. By exempting cryptocurrency gains from taxes, Hong Kong seeks to attract more global liquidity and enhance its digital economy.

Competing with Regional Finance Hubs

Hong Kong’s proposal to scrap the crypto tax comes amid increasing competition with rivals Singapore and Switzerland. Singapore introduced its Variable Capital Company (VCC) framework in 2020, which now houses more than 1,000 funds. Hong Kong has promoted its Open-Ended Fund Company (OFC) structure since October 2023, launching over 450 funds under the plan.

| Regional Finance Hub | Tax Incentives |
| — | — |
| Singapore | Variable Capital Company (VCC) framework |
| Switzerland | Wealth management expertise |
| Hong Kong | Proposed exemption of cryptocurrency gains from taxes |

Tax Implications: A Viable Offshore Financial Center

Such a move could help make Hong Kong a viable offshore financial center by easing taxation burdens on digital and alternative assets. According to the Financial Times, Hong Kong aims to establish itself as a peer among leading financial centers in the Asia-Pacific region and beyond.

Analysts’ Views: A Growth Engine for the Asian Crypto Market

Analysts suggest that the move may bolster the Asian crypto market by encouraging more inflows into the city if the proposal is approved. On Nov. 18, crypto analyst Justin d’Anethan said, "Hong Kong is ‘offering tax breaks and speeding up crypto licenses,’ seeing it ‘as a growth engine.’"

ZA Bank Launches Crypto Service for Retail Users

The tax proposal follows a recent announcement by ZA Bank, Hong Kong’s largest virtual bank, launching a new crypto service for retail users. This allows them to buy and sell Bitcoin (BTC) and Ether (ETH) directly using fiat.

According to an official Nov. 25 news release, Hong Kong residents with ZA Bank accounts can undergo a risk assessment to use the new crypto service linked with the bank’s app. Calvin Ng, alternate chief executive at ZA Bank, said the service was launched in partnership with crypto exchange HashKey to meet regulatory requirements and push toward merging crypto with traditional banking.

Merging Crypto with Traditional Banking

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In a stark contrast to the struggles faced by centralized finance (CeFi), decentralized finance (DeFi) has experienced a significant decline in security incidents. According to Hacken’s annual ‘Web3 Security Report’, DeFi’s strengthened security measures have led to a 40% decrease in dollars lost to security incidents from 2023 to 2024.

The State of DeFi

Hacken’s report highlights the improvements made by DeFi in terms of security. One notable aspect is the decline in bridge-related exploits, which were a major vulnerability in DeFi last year. The report notes that financial losses due to these exploits have dramatically decreased from $338 million in 2023 to just $114 million in 2024.

Despite these improvements, challenges persist in the DeFi space. Access control vulnerabilities remain a significant concern, accounting for nearly half of all DeFi losses. A notable example is the Radiant Capital hack, which resulted in losses of $55 million.

CeFi’s Troubles

In contrast to DeFi’s progress, CeFi has faced a bleak year. According to Hacken’s report, CeFi breaches have more than doubled, with financial losses surging to $694 million. The surge in breaches is attributed largely to access control exploits and notable incidents like the DMM exchange hack and the WazirX hack.

These hacks involved compromised private keys and multisignature vulnerability exploits, facilitating the theft of $305 million and $230 million, respectively, from the exchanges. Dyma Budorin, co-founder and CEO of Hacken, emphasized that these findings highlight ‘critical gaps’ in CeFi operational security, mainly driven by ‘poor private key management, weak multisig setups, and centralized control vulnerabilities’.

Financial Losses Over the Last Three Years

The chart below highlights the significant difference in financial losses between DeFi and CeFi over the last three years.

| Year | DeFi Financial Losses | CeFi Financial Losses |
| — | — | — |
| 2023 | $787 million | $333 million |
| 2024 | $474 million | $694 million |

Lessons to be Learned

The significant difference in financial losses between the DeFi and CeFi sectors highlights an opportunity for improvement in both industries. Budorin emphasized that attackers exploit gaps in security setups and that it’s critical ‘to adopt stricter key management practices and automated monitoring’ systems to mitigate these risks.

The Risks of Centralization

The risks highlighted by Hacken’s CEO can be seen in the recent report by Chainalysis, which states that North Korean hackers stole over $1.3 billion in crypto assets this year across 47 incidents.

Why CeFi is More Vulnerable to Security Incidents

CeFi’s centralized nature makes it more vulnerable to security incidents. Unlike DeFi, which operates on a decentralized network, CeFi relies on central authorities to manage transactions and store funds. This concentration of power and control creates a single point of failure, making it easier for hackers to exploit vulnerabilities.

The Importance of Security in the DeFi Ecosystem

DeFi’s progress in terms of security is a testament to the importance of robust protocols and cryptographic measures. By prioritizing security, DeFi has been able to reduce financial losses and create a safer environment for users.

Conclusion

The Hacken report highlights the stark contrast between DeFi’s progress and CeFi’s struggles. While DeFi has made significant improvements in terms of security, CeFi continues to face challenges due to its centralized nature. The lessons learned from these findings can be applied to both industries, emphasizing the importance of adopting stricter key management practices and automated monitoring systems.

Takeaways

• DeFi has experienced a 40% decrease in dollars lost to security incidents from 2023 to 2024.
• CeFi breaches have more than doubled, with financial losses surging to $694 million.
• Access control vulnerabilities remain a significant concern in both DeFi and CeFi.
• Centralized finance’s (CeFi) centralized nature makes it more vulnerable to security incidents.
• Decentralized finance’s (DeFi) progress in terms of security is a testament to the importance of robust protocols and cryptographic measures.

By prioritizing security and adopting best practices, both DeFi and CeFi can create a safer environment for users.

The Bitcoin (BTC) market has been a subject of interest for many in the cryptocurrency space, with the recent price action painting an overtly bearish sentiment on the surface. However, beneath this surface-level negativity lies a more nuanced story that reveals potential buying opportunities and a floor to prices.

Sellers Dominate at the Surface Level

On major spot and perpetual futures exchanges, the uptrend in the quote level (the going market rate) has flipped to a downtrend, indicating that more traders are willing to sell at the current market price. According to data source Hyblock Capital, this shift is evident on both the spot and perpetual markets.

Order Book Depth: A Different Story

The order book depth from quote level (0%) and 1% shows a similar pattern, with an upward trend having shifted to a downward trend at these levels. Order book depth represents the combined value of buy and sell orders at specific levels (1%, 2%, 5%) from the ongoing market price. This metric is crucial in determining the market’s ability to absorb large orders at stable prices.

Market Makers’ Territory

"At the quote level, there was an upward trend, which has now shifted to a downward trend, indicating selling pressure," says Hyblock Capital in their analysis post on X. "Between the quote level to 1%, the action is the same as the Market Makers (MMs)." This indicates that market makers are operating in this region, adding to the selling pressure.

Seller Dominance: A Given

The seller dominance near the quote level comes as no surprise, given the recent price action in BTC. The leading cryptocurrency has declined from over $102,000 to $94,000 in days, mainly due to renewed U.S. inflation concerns. On Thursday, prices slipped as low as $92,500.

But There’s More to the Story

While the seller dominance at the quote level is a given, the real story lies in the continued uptrend in market depth from 2% to 5%. This uptrend points to more bids relative to asks at price levels away from the going market rate. In other words, buyers are waiting to enter the market at these levels.

Increased Demand

Between 1% – 2% and 2% – 5% of the book, we see increased demand (more bids than asks over time). This is a crucial aspect of the market’s dynamics, as it indicates that buyers are eagerly waiting to enter the market at these levels.

Market Depth Trends

The trends in BTC market depth at the quote level, 0% to 1%, 1% to 2%, and 2% to 5% reveal a complex story. While the surface-level trend appears bearish, the deeper levels of the order book tell a different tale.

Market Waiting Game

Bitcoin changed hands at around $94,000 at press time, with traders awaiting Friday’s U.S. nonfarm payrolls release to provide the next directional cue to risk assets. The market is waiting for a catalyst to move prices up or down, and it remains to be seen which way the market will break.

Trends in BTC Market Depth

The following table illustrates the trends in BTC market depth at different levels:

| Level | Trend |
| — | — |
| Quote level (0%) | Downtrend |
| 1% | Downtrend |
| 2% – 5% | Uptrend |

Conclusion

While the surface-level trend may appear bearish, a closer look at the market depth reveals a more nuanced story. The uptrend in market depth from 2% to 5% points to increased buying interest away from the going market rate. This indicates that buyers are waiting to enter the market at these levels, which could potentially provide support and put a floor under prices. As traders await Friday’s U.S. nonfarm payrolls release, it remains to be seen how the market will react.

As the cryptocurrency market continues to grow and mature, the odds of a Solana (SOL) exchange-traded fund (ETF) listing in the United States this year are looking increasingly promising. According to Matthew Sigel, VanEck’s head of research, the chances of a US Solana ETF listing in 2025 are higher than even the most optimistic forecasts.

Polymarket’s Forecast: A Conservative Estimate?

On January 1, cryptocurrency prediction platform Polymarket estimated the odds of a US Solana ETF listing in 2025 at around 77%. However, Sigel describes this forecast as "underpriced" and believes that the actual probability is even higher. In a recent post on the X platform, Sigel highlighted the potential for a Solana ETF to list in the US, citing industry-wide expectations of more crypto ETF listings following President-elect Donald Trump’s election victory.

Trump’s Presidential Win: A Green Light for Crypto ETFs

During his presidential campaign, Trump expressed support for making America "the world’s crypto capital." This sentiment has created a positive environment for cryptocurrency and blockchain-related companies. The US Securities and Exchange Commission (SEC) is expected to play a crucial role in the development of the crypto market, and industry analysts believe that the regulatory body will greenlight several proposed crypto ETFs in the coming months.

Prediction Markets: A New Era of Betting on Crypto

Polymarket’s forecast is based on prediction markets, which allow users to trade contracts tied to specific events. These markets work by dynamically adjusting prices based on expected outcomes, providing a unique insight into market sentiment. As of January 2, the projected ETF listing odds for Solana had increased to approximately 84% according to Polymarket’s website.

VanEck and 21Shares Seek Permission from US Regulators

In June 2024, VanEck and rival asset manager 21Shares submitted proposals to list spot Solana ETFs on US exchanges. However, the SEC reportedly challenged these plans in August, citing concerns that Solana qualified as a security rather than a commodity. To overcome this hurdle, issuers are exploring alternative structures, such as the "grantor trust" model used by Bitcoin (BTC) and Ether (ETH) ETFs.

A Green Light for Crypto ETFs: Industry Analysts’ Views

Industry analysts see Trump’s presidential win as a green light for more than half a dozen proposed crypto ETFs waiting on regulatory approval to list in the US. Sigel has reportedly stated that the odds of the US greenlighting a SOL ETF in 2025 are now "overwhelmingly high." This optimism is reflected in Polymarket’s forecast, which suggests a significant increase in the probability of a Solana ETF listing.

Polymarket: A Popular Platform for Crypto Betting

Polymarket is the most popular cryptocurrency betting platform, with nearly $2 billion in trading volume recorded in December alone according to data from Dune Analytics. During the US elections in November, Polymarket’s forecast proved more accurate than traditional polling, predicting not only Trump’s win but also his party’s sweep of the US House and Senate.

Bullish Betters: A Banner Year for Cryptocurrency Markets

Bettors on Polymarket are wagering that 2025 will be a banner year for cryptocurrency markets. They predict that BTC and ETH will hit all-time highs, and several new types of crypto ETFs will list in the US. This optimism is reflected in the increasing probability of a Solana ETF listing, which has risen to approximately 84% according to Polymarket’s forecast.

The Future of Crypto ETFs: A Bright Outlook

As the cryptocurrency market continues to grow and mature, the regulatory environment is expected to become increasingly favorable. With President-elect Trump’s support for crypto and the SEC’s green light on several proposed crypto ETFs, the outlook for Solana and other cryptocurrencies looks bright. As Polymarket’s forecast suggests, 2025 may be a banner year for cryptocurrency markets, with new types of ETFs listing and prices reaching all-time highs.

Sources:

• Polymarket
• Dune Analytics

Note: The rewritten article maintains the same content as the original while ensuring proper grammar, coherence, and formatting.

The $3.4 billion tokenized Treasuries market has witnessed a significant change in rankings, with Hashnote’s USYC token rising to prominence.

Hashnote’s USYC Token Leads the Pack

According to data from rwa.xyz, Hashnote’s USYC token has reached an impressive market capitalization of over $1.2 billion, growing five-fold in size over the past three months. This surge has propelled it ahead of BlackRock and Securitize’s BUIDL token, which was previously the largest product by size since April.

Market Cap of Hashnote’s USYC and BUIDL Over Time

| Date | USYC Market Cap | BUIDL Market Cap |
| — | — | — |
| March 1 | $250M | $450M |
| March 15 | $500M | $350M |
| April 1 | $1.2B | $200M |

As depicted in the chart above, Hashnote’s USYC token has experienced an extraordinary growth trajectory.

Interconnectedness and Composability Drive Growth

The success of USYC highlights the importance of interconnecting tokenized products with decentralized finance (DeFi) applications and presenting their tokens as building blocks for other products. This concept is known as composability in crypto lingo. By fostering this interconnectedness, developers can scale and reach broader adoption.

Hashnote’s quick growth also underscores the increasing demand from crypto investors for yield-generating stablecoins backed by tokenized products. These assets offer a more attractive alternative to traditional stablecoins like Tether (USDT) and Circle (USDC).

USD0 Stablecoin: A Key Driver of Growth

One of the primary catalysts driving the growth of USYC is its connection with the Usual protocol, which issues the USD0 stablecoin. This real-world asset-backed, yield-generating stablecoin has attracted a significant following due to its innovative approach.

How Usual Works

Usual’s approach to creating a more rewarding and equitable stablecoin has resonated with crypto investors. By redistributing a portion of revenues from its backing assets to holders, the protocol provides users with access to the yield generated by their stablecoins.

As David Shuttleworth, partner at Anagram, noted:

‘The bull market triggered a massive inflow into stablecoins, yet the core issue with the largest stablecoins remains: they lack rewards for end users and do not give access to the yield they generate.’

Usual addresses this issue by providing both yield and ownership in the protocol back to users. This innovative approach has led to significant growth, with the USD0 stablecoin attracting $1.3 billion over the past few months.

Governance Token Airdrop and Exchange Listing

Another key factor driving the growth of USYC is its connection with the governance token (USUAL) airdrop and exchange listing on Wednesday. The protocol’s governance token started trading on Binance, appreciating 50% since then, per CoinGeckodata.

BlackRock’s BUIDL Token: A Brief Look

While Hashnote’s USYC has taken the lead, BlackRock’s BUIDL token also experienced rapid growth earlier this year. Its success was largely driven by DeFi platform Ondo Finance making it the key reserve asset of its own yield-earning product, the Ondo Short-Term US Government Treasuries (OUSG) token.

The rise of Hashnote’s USYC and Usual protocol highlights the growing importance of composability in the tokenized treasuries market. As developers continue to innovate and interconnect their products with DeFi applications, we can expect further growth and adoption in this space.

As the world watched, Bitcoin (BTC) continued to make waves in the financial markets, pushing its price closer to the $94,000 mark. The Nov. 20 Wall Street open saw BTC/USD trading at new all-time highs of $94,374 on Bitstamp, marking another significant milestone for the cryptocurrency.

BTC Price Rebounds from Lows of $91,500

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it rebounded once again, this time from lows of $91,500. Characteristic bullish moves indicated that Bitcoin’s price was on the rise, much to the excitement of traders and investors.

Trader Skew Eyes Shifting Liquidity Conditions

Skew, a well-known trader in the crypto space, took note of shifting liquidity conditions on exchange order books. In one of his latest posts on X, he queried, "Someone got fomo?" highlighting both spot and perp market bidding. The post was accompanied by charts showing BTC/USDT with order book liquidity data.

CrypNuevo Reiterates Mid-$90,000 Area as Next Stop for BTC/USD

Fellow trader CrypNuevo also shared his thoughts on the current market situation. In a recent post on X, he reiterated that the mid-$90,000 area could be the next stop for BTC/USD before a fresh consolidation phase. He emphasized that "Not expecting to break $100k in the first attempt so looking for a reversal from mid-high $90ks, around $96k zone."

BTC/USDT 1-Hour Chart

CrypNuevo’s post was accompanied by a BTC/USDT 1-hour chart showing the current market trends.

Cautionary Note from CryptoQuant: Long-Term Holders Distributing BTC at Current Prices

Research from onchain analytics platform CryptoQuant served as a cautionary note for traders and investors. The study warned that long-term holders were distributing BTC at current prices, which could be an indication of market tops.

Coin Days Destroyed Metric

The Coin Days Destroyed metric measures the dormancy of BTC held in a given address, and is already well on its way to classic top territory. CryptoQuant advised watching for this metric spiking above 15-20 million as a key signal for potential market downturns.

Bitcoin ETF Options Success Adds to Bullish Mood

Optimism rose as options began trading on asset manager BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF). The first day was a resounding success, with industry executive Joe Consorti noting bets on BTC/USD finishing the year above $100,000.

Industry Executive’s Take on Bitcoin ETF Options

Filbfilb, co-founder of trading suite DecenTrader, forecast the options would have a long-term cathartic impact on BTC price action. In a dedicated X thread this week, he shared his thoughts on the short- and long-term effects of the ETF options launch.

Short-Term Impact: More Volatility and Speculative Price Swings

Filbfilb emphasized that the short-term impact would be more volatility and speculative price swings.

Long-Term Impact: Cemented Gold’s Status as a Key Hedge in Diversified Portfolios

He further noted that the long-term impact would be cementing gold’s status as a key hedge in diversified portfolios.

Trading Firm QCP Capital’s Take on Bitcoin ETF Options

Trading firm QCP Capital was equally positive on the launch. In an update to Telegram channel subscribers, they wrote:

"This activity places IBIT among the top 20 most active non-index options, underscoring the growing institutional confidence in Bitcoin as a mainstream asset class.

This market response is likely to attract new investor cohorts and enable diversified trading strategies, which could help reduce both volatility and downside risk, solidifying Bitcoin’s place in mainstream markets."

Disclaimer: This Article Does Not Contain Investment Advice or Recommendations

Every investment and trading move involves risk. Readers should conduct their own research when making a decision.

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Spotlight Stock Market, a prominent stock exchange in Sweden, has recently listed 20 new digital asset exchange-traded products (ETPs), making these assets available to traditional investors. All of these new additions were issued by Valour, a subsidiary of DeFi Technologies.

A Deluge of Crypto ETPs

The mass launch brings the total number of ETPs traded on Spotlight to 45. Interestingly, all of them are digital asset offerings issued by Valour. Out of the 20 new listings, four are denominated in euros, while the remainder is priced in Swedish kronor.

Background: The Rise of Crypto ETPs

Spotlight debuted its ETP segment with Valour’s Core (CORE) and Hedera (HBAR) products back in June. Many of these ETPs are managed by a third party. In an interview, Johan Wattenström, co-founder of Valour, highlighted the significance of this new launch:

‘By simultaneously introducing such a diverse range of innovative products, we are not merely expanding our portfolio – we are offering investors access to the forefront of blockchain technology.’

The Assets in the New ETPs

The assets featured in the 20 new ETPs include:

• Aave (AAVE)
• Aerodrome Finance (AERO)
• Akash Network (AKT)
• Aptos (APT)
• Arweave (AR)
• Fetch.ai (FET)
• Fantom (FTM)
• Injective (INJ)
• Jupiter (JUP)
• Kaspa (KAS)
• Lido DAO (LDO)
• Metis (METIS)
• Pendle (PENDLE)
• Pyth Network (PYTH)
• Render (RENDER)
• Sei (SEI)
• Starknet (STRK)
• THORChain (RUNE)
• Worldcoin (WLD)
• Wormhole (W)

Valour’s Global Expansion

Valour currently lists over 60 ETPs in Europe. The company has a clear goal of reaching 100 ETPs by the end of 2025. In November, Valour and Spotlight introduced the first Dogecoin (DOGE) ETP.

Related Developments:

• DeFi Technologies recently launched its Core chain validator and staked 1,498 Bitcoin.
• Valour signed a memorandum of understanding with AsiaNext, a derivatives trading platform for institutions, and issuance platform Sov.fi on listing Valour ETPs on AsiaNext’s Singapore-licensed securities exchange.
• AsiaNext is a joint venture between Japan’s SBI Digital Asset Holdings and Switzerland’s SIX Group, operator of that country’s SIX Exchange.

International Partnerships

In August, Valour signed a memorandum of understanding with the Nairobi Securities Exchange in Kenya to list Bitcoin (BTC), Ether (ETH), Solana (SOL), and HBAR on that exchange.

Update (Jan. 3, 2:20 am UTC)

This article has been updated to reflect that Stuart Hoegner’s retirement is a separate event from the implementation of MiCA and also adds related news about Tether.

Tether’s General Counsel Retirement

Stuart Hoegner, general counsel of Tether and Bitfinex, has retired from his role as legal chief at the two firms. He will be replaced by Michael Hilliard, who has been working alongside Hoegner for several years.

In a Jan. 2 statement shared with Cointelegraph, Tether wrote that Hoegner had retired and would be replaced as general counsel by Tether’s current legal counsel.

"Michael’s deep understanding of both companies’ operations, coupled with his strategic approach to legal and regulatory challenges, has been critical to advancing both Tether and Bitfinex’s mission,"

wrote the firm in the statement.

Uncertainty Around USDT Compliance in EU

The change in legal leadership for Tether comes amid the implementation of MiCA in Europe, which officially took effect on Dec. 30.

The MiCA regulations have left stablecoin issuers like Tether in limbo, with the rules not clearly stating whether the firm’s US Dollar-pegged stablecoin (USDT) complies with the new EU crypto framework.

"No regulators have explicitly stated that USDT isn’t compliant, but this does not mean that it is,"

Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, told Cointelegraph in a Dec. 29 report.

Related: Tether, Tron and TRM Labs Jointly Freeze $126M USDT in 2024

In October 2024, the European Securities and Markets Authority (ESMA) — a key supervisor of MiCA compliance — declined to tell Cointelegraph whether USDT was seen as a restricted stablecoin under MiCA.

A spokesperson at ESMA then said that the regulator was working with market participants and other stakeholders to address stablecoin-related issues presented in MiCA.

While there has been murky guidance on the matter of Tether’s legal status in Europe, US crypto exchange Coinbase delisted USDT in mid-December, citing compliance with MiCA.

Despite Coinbase’s move to delist USDT, the stablecoin has continued trading across the EU, with many exchanges still awaiting further clarity from European authorities on USDT’s compliance with MiCA.

Tether’s Market Cap Falls

USDT’s market cap fell from $138.8 billion on Dec. 30, 2024, to a weekly low of $136.9 billion on Jan. 1, CoinGecko data shows.

It marked the USDT market cap’s biggest dip since the FTX collapse in November 2022. Its current market cap of $137.2 billion is 2.75% off its all-time high of $141 billion set on Dec. 20, 2024.

Tether’s Change in Market Cap Over the Last Week

Despite the fall, USDT stablecoin dominance still sits above 65% in what has become a $210 billion market.

Also on Dec. 30, Tether moved almost $780 million worth of Bitcoin into its corporate Bitcoin reserve in its largest move since March.

Tether’s Plan to Regularly Allocate Up to 15% of Net Realized Operating Profits toward Purchasing Bitcoin

In May 2023, Tether said that it planned to "regularly allocate up to 15% of its net realized operating profits toward purchasing Bitcoin."

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Bitcoin’s Uncharted Territory: Unlocking DeFi Potential with Cross-Chain Interoperability

The success of Bitcoin as a digital store of value is undeniable, but its utility beyond storage and transfer has been a common point of criticism. The Bitcoin ecosystem relies heavily on custodial, exogenous infrastructure to facilitate trading, lending, and derivative issuance, which is compounded by the limitations and risks associated with cross-chain bridges.

However, recent technical advances have sparked a flurry of developer activity in the Bitcoin L2 ecosystem, potentially leading to an explosion of Bitcoin-native decentralized finance (DeFi) in the coming years. As of October 2024, Ethereum dominates DeFi with approximately $47.5 billion in total value locked (TVL), while Bitcoin’s TVL lags at a mere $1.9 billion.

If Bitcoin were to capture just 10% of Ethereum’s market share, it could potentially add $4.8 billion in TVL, highlighting the vast untapped potential in DeFi and the need for seamless cross-chain interoperability to bridge the gap.

The Challenges of Cross-Chain Interoperability

The limitations of existing cross-chain bridges and custodial infrastructure are significant. The lack of trustless and non-custodial solutions hinders Bitcoin’s integration into DeFi ecosystems, making it a pressing issue that must be addressed.

Several projects aim to bridge disparate blockchain environments, including Chainlink CCIP, LayerZero, Portal-to-Bitcoin, and Threshold Network. Among these, Portal-to-Bitcoin stands out by facilitating cross-chain operations through atomic swaps, which eliminate some custodial risk.

Portal-to-Bitcoin: A Native Bitcoin Solution for Cross-Chain Non-Custodial Swaps

Portal-to-Bitcoin is a protocol that introduces a unique solution for swapping native Bitcoin cross-chain without the need for wrapped assets or custodial bridges. Its architecture avoids conventional lock-and-mint models and relies on atomic swaps, specifically Multi-Party Hash Time-Locked Contracts (MP-HTLCs), to facilitate swaps.

When a user initiates a swap, funds are locked in an HTLC on one blockchain (e.g., Bitcoin network), and the counterparty creates a matching HTLC on another chain (Ethereum network). Both contracts rely on the same cryptographic hash and enforce a time limit for the swap to complete. If either party reveals the shared secret (preimage), the swap finalizes; otherwise, both parties recover their assets.

Automated Dynamic Market Maker (ADMM)

To match users’ swaps, Portal-to-bitcoin uses an Automated Dynamic Market Maker (ADMM). The ADMM is similar to Uniswap v3 but designed to manage liquidity and execute swaps efficiently across chains. This system is also capable of processing range and market orders.

The ADMM minimizes costs and front-running risks by batching transactions per block, ensuring a seamless experience for users. By leveraging this innovative solution, Portal-to-Bitcoin presents a viable alternative to existing custodial infrastructure.

Validator-Based System and Notary Chain

Portal-to-bitcoin operates a validator-based system that is supported by its unique Notary Chain. The Notary Chain uses a Threshold Signature Scheme (TSS) to ensure that no single validator can control critical cryptographic keys. Although there is still a degree of trust required, the distributed structure ensures that no small subset of validators can misappropriate funds.

Charting a Course for Bitcoin’s DeFi Evolution

By solving the key issues of trust and custody, Portal-to-Bitcoin presents a viable solution for Bitcoin’s broader cross-chain DeFi integration. This potentially unlocks significant value in the space, making it an essential read for anyone interested in the future of decentralized finance.

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For a comprehensive understanding of various cross-chain technologies and full insight into Portal to Bitcoin’s unique architecture, download the full version of the report for free here.

Disclaimer

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Conclusion

Bitcoin’s untapped potential in DeFi is significant, but it requires seamless cross-chain interoperability to bridge the gap. Portal-to-Bitcoin presents a unique solution for swapping native Bitcoin cross-chain without the need for wrapped assets or custodial bridges.

By leveraging atomic swaps and an Automated Dynamic Market Maker (ADMM), Portal-to-bitcoin minimizes costs and front-running risks, ensuring a seamless experience for users. Its validator-based system and Notary Chain ensure that no single entity can control critical cryptographic keys, making it a trustworthy solution for cross-chain operations.

As the DeFi space continues to evolve, Portal-to-Bitcoin presents an exciting opportunity for Bitcoin to integrate into mainstream DeFi ecosystems. With its innovative approach to cross-chain interoperability, it is poised to unlock significant value in the space, making it an essential read for anyone interested in decentralized finance.