Crypto Scoop: Ethereum Celebrates Its 8th Birthday

Amid celebrations of Ethereum’s birthday, we see remarkable milestones within the crypto space. In this edition of the crypto scoop, we review the following:

• Ethereum’s 8th birthday
• Tether’s outstanding Q2 performance
• Crypto-friendly banks increase

Ethereum Celebrates Its 8th Birthday

On July 30, 2023, the crypto community gathered to celebrate the 8th birthday of the Ethereum network. In 2015, the vision of a censorship-proof 'world computer' became a reality, as former Ethereum Foundation CCO Stephan Tual officially declared the network's launch. Over the past eight years, Ethereum has achieved remarkable success, with its native currency Ether becoming the second-largest crypto asset worldwide, boasting a market capitalisation of $225 billion and an active developer community of more than 1,900 members.

Meanwhile, Coinbase, one of the crypto exchanges in a lawsuit with the SEC, is gearing up for a legal battle.  On their second-quarter earnings call on August 3, 2023, Coinbase's Chief Legal Officer, Paul Grewal, expressed the exchange's confidence in winning the case brought against them by the regulator. Grewal was adamant that they had a strong case and would be filing a motion seeking dismissal of the lawsuit on August 4.

Amidst all this, an exciting mention caught the attention of the crypto community. The famous Barbie film star, Margot Robbie, gave a nod to Bitcoin during a recent interview. Her comments, where she referred to Bitcoin as having "Big Ken Energy," sparked excitement among influencers in the crypto sphere.

Tether Records Remarkable Q2 2023 Performance: Excess Reserves Reach $3.3 Billion

In a show of financial strength, Tether, the world's largest stablecoin issuer, has reported impressive profits for yet another quarter, leading to a significant increase in its excess reserves.

The assurance report released on Monday, covering Tether's financials as of June 30, reveals that the issuer now holds a substantial sum of over $3.3 billion in excess reserves to back its USDT tokens fully.

The surplus reserves result from the profits earned from Tether's existing reserves. Instead of distributing these profits to shareholders, the company uses them exclusively as insurance to bolster the backing of its tokens. Tether achieved an impressive $1.5 billion in net profit in Q1, followed by a staggering additional $1 billion between April and June. Out of its Q2 profit, $115 million was allocated to share buybacks, with the rest being channelled into the company's excess reserves.

This surplus reflects Tether's commitment to providing increased stability and security for its stablecoin, reaffirming its position as a leading player in the crypto industry.

Crypto-Friendly Banks on the Rise As Palau's Ripple-Powered Stablecoin Pilot Takes Off

Recent research has shed light on the growing acceptance of cryptocurrencies among global banks. CoinGecko's study revealed that approximately two-thirds of the world's 30 largest banks, ranked by assets under management (AUM), now support crypto trading through regulated exchanges. Taking it a step further, nearly 74% of the top 50 banks worldwide also engage in crypto trading by connecting to regulated exchanges. However, none of these banks currently facilitate retail crypto trading or on-ramping from native platforms.

In a significant development, Palau, a nation of more than 300 islands in the Philippines Sea, has joined forces with Ripple. The partnership involves a limited pilot of Palau's own U.S. dollar-pegged stablecoin, which utilises Ripple's XRP technology. The pilot began about three weeks ago, primarily validating the stablecoin system's design.

Named the Palau Stablecoin (PSC), the pilot aims to introduce a digital representation of the U.S. dollar, potentially revolutionising how goods and services are paid for within Palau. As the project progresses, it has the potential to open up new possibilities for Palau's financial landscape.