Kraken Stands by USDT: No Delisting, Increased Focus on Crypto Custody
Crypto News- Custody of digital assets has seen a surge in popularity, especially since the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States.
New Entrants: Taurus and Fireblocks
Among the latest entrants aiming to secure assets for institutional investors are Taurus and Fireblocks. Taurus has announced the opening of an office in Canada to meet the growing demand for custody and tokenization services. Meanwhile, Fireblocks is waiting for regulatory approval from the New York Department of Financial Services to operate as a limited-purpose trust company.
Ripple predicts that the institutional crypto custody market could reach nearly $10 trillion by 2030.
Coinbase’s New Appointment
In other news, Coinbase has appointed Kendrick Meek to its digital asset regulatory council. Meek, who previously served as a representative for Florida’s 17th congressional district, joins Coinbase as part of the exchange’s efforts to modernize the regulatory framework for digital assets in the United States.
Kraken’s Stance on USDT Delisting
This week’s Crypto Biz also discusses Kraken’s denial of plans to delist stablecoins in Europe, the departure of Grayscale’s CEO, Prometheum’s new Ether custody service that treats ETH as a security, and more.
Kraken has stated that it has “no plans” to delist USDT in Europe at this time. Despite reports suggesting otherwise, Kraken’s global head of asset growth and management, Mark Greenberg, clarified that the exchange will continue to list USDT and adhere to all legal requirements. He emphasized that Kraken is committed to offering all relevant stablecoins to its European customers while complying with the Markets in Crypto-Assets Regulation framework.
Prometheum’s Ether Custody Service
Prometheum has launched a new Ether custody service that categorizes ETH as a security. This service was initially rolled out to select companies and is expected to fully launch in June. Prometheum garnered attention last June when its co-founder and co-CEO, Aaron Kaplan, testified before a U.S. House committee in support of regulating crypto under existing securities laws. The decision to treat Ether as a security has sparked criticism within the crypto community.
Grayscale CEO Steps Down
Grayscale CEO Michael Sonnenshein has stepped down from his position. Barry Silbert, the founder and CEO of Digital Currency Group, announced that Sonnenshein will be replaced by former Goldman Sachs executive Peter Mintzberg on August 15. Until then, Edward McGee, Grayscale’s chief financial officer, will serve as the interim principal executive officer. Sonnenshein, who served as CEO for a decade, was instrumental in introducing crypto funds to institutional investors and sponsoring a spot Bitcoin ETF.
Binance.US Wins Florida License Appeal
In a significant legal development, Binance.US has won its appeal to reinstate its money services license in Florida. The Florida First District Court of Appeal ruled that the state’s Office of Financial Regulation lacked sufficient grounds for the emergency suspension order. The suspension, initially issued after Binance CEO Changpeng Zhao admitted to violating U.S. Anti-Money Laundering laws, threatened substantial financial losses and tax liabilities for over 170,000 state account holders by forcing them to liquidate their digital assets amid market fluctuations.
FAQ for Crypto Biz: Digital Asset Custody, Kraken, Coinbase, and More
Why is digital asset custody becoming more popular?
Digital asset custody is gaining popularity due to the increasing adoption of cryptocurrencies and the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. These developments have heightened the need for secure storage solutions for institutional investors.
What recent moves have Taurus and Fireblocks made in the digital asset custody space?
Taurus has announced the opening of an office in Canada to meet the growing demand for custody and tokenization services. Fireblocks, on the other hand, is awaiting regulatory approval from the New York Department of Financial Services to operate as a limited-purpose trust company.
What does Ripple predict about the future of institutional crypto custody?
Ripple forecasts that the institutional crypto custody market could reach nearly $10 trillion by 2030, highlighting the significant growth potential in this sector.
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