Swiss stock exchange SIX is exploring the launch of a new crypto trading platform in Europe, aiming to challenge dominant players like Binance, Financial Times reported on Sept. 18.

Bjørn Sibbern, SIX Group’s global head of exchanges, stated that the firm was assessing a platform to support spot crypto trading and derivatives activities because the emerging industry is increasingly recognized as a legitimate asset class.

Institutional focus

According to Sibbern, the proposed platform would serve only institutional investors like asset managers.

SIX plans to leverage its strong reputation and Switzerland’s favorable crypto regulations to attract institutional investors to achieve this.

This move would benefit from Switzerland’s clear crypto regulations and offer a secure asset trading and custody environment. Its target of large-scale investors would also add to the region’s competitive advantage in the crypto space.

Notably, this comes as more traditional financial institutions like Standard Chartered and Singapore-based DBS have expanded their services to include crypto-focused trading activities.

Market observers have linked this development to the approval of spot crypto exchange-traded fund (ETF) products linked to Bitcoin and Ethereum trading in the United States.

Enhanced competition

So, if SIX proceeds with its planned exchange launch, it could significantly challenge major crypto-focused trading platforms like Coinbase and Binance, which currently dominate the market.

Data from the blockchain analytics platform CCData shows that trading volume on centralized exchanges has been on an uptrend for the last two months. According to the firm, spot and derivatives activity increased 5.38% in August, reaching $5.22 trillion.

CCData stated that top-tier exchanges like Binance, Coinbase, and ByBit account for around 70% of this spot volume.

So, the entrance of traditional institutions like SIX could pose new competitive conditions that could impact the dominance of these platforms in the market.

The Stand With Crypto Alliance, a Coinbase-backed non-profit organization, is leading efforts to establish the Creator Defense Fund initiative that has raised $6 million from venture capital firm Andreessen Horowitz (a16z) and NFT marketplace OpenSea.

According to a Sept. 13 press release, a16z contributed $1 million to the fund, while OpenSea pledged the remaining $5 million.

The alliance said that legal pressures — like the SEC’s recent Wells Notice to OpenSea — signal that blockchain-based creators will continue to face significant regulatory threats, and the fund aims to help those who need it.

Creator Defense Fund

The fund aims to offer legal support to artists and creators who are facing government actions or navigating regulatory uncertainty, particularly within the crypto space.

Miles Jennings, general counsel at a16z, emphasized that the fund is designed to assist creators who use blockchain to connect with fans, monetize their work, and foster creativity. He explained that the initiative includes partnerships with leading law firms to provide legal consultations for creators.

According to Jennings, NFTs are innovative blockchain-based tools that enable digital property rights over various digital and physical assets. The assets are proof of ownership of anything, including digital art or concert tickets.

He added:

“Blockchain technology will bring artists and fans closer together while also helping artists better monetize their work, ultimately bringing more creativity into the world. The fear of potential legal repercussions should not hold back well-meaning artists from experimenting with new technologies that may better serve their fans and families.”

OpenSea CEO Devin Finzer announced the release of a free open-edition NFT titled “Rising Tides Lift All Boats” on Base to commemorate the fund’s launch and symbolize the industry’s resilience.

Notably, crypto community members have welcomed the move, with Bradley Freeman of Stack saying:

“Creators are the lifeblood of NFTs and the rarest resource in a world of infra and dev tools. If you’re a creator at the bleeding edge of technology, you are extremely valuable and you will be rewarded over the coming years and decades for being early.”

Mentioned in this article

Coinbase’s newly launched wrapped Bitcoin product, cbBTC, has seen rapid adoption within its first 24 hours, with a market capitalization nearing $100 million.

Data from Dune Analytics shows the circulating supply of cbBTC has reached 1,720 tokens, valued at $99.8 million. Of this, 43% is on Base, while 57% resides on Ethereum.

Base’s DeFi growth

Industry analysts have noted that Coinbase’s cbBTC growth could significantly boost DeFi activities on the exchange’s layer-2 network, Base.

Luke Youngblood, a contributor to Moonwell DeFi, highlighted the product’s impact. He pointed out that cbBTC’s fungibility with Bitcoin on Coinbase would enable retail BTC holdings exceeding $20 billion and institutional holdings over $200 billion to seamlessly integrate with Base’s on-chain ecosystem.

Nansen CEO Alex Alealso praised the token’s rapid adoption and predicted that it would substantially increase total assets on the Base network.

Further, He shared that Coinbase currently holds about 36% of the supply, while market maker Wintermute ranks among the top holders. Svanevik remarked:

“[It appears] Wintermute is the #1 market maker. [It will] be a solid business for them.”

Sun FUDs cbBTC

Despite cbBTC’s early success, not everyone is optimistic.

TRON founder Justin Sun voiced skepticism, dubbing cbBTC “central bank BTC” due to its lack of Proof of Reserve audits and potential government intervention.

He stated:

“cbbtc lacks Proof of Reserve, no audits, and can freeze anyone’s balance anytime. Essentially, it’s just ‘trust me.’ Any US government subpoena could seize all your BTC. There’s no better representation of central bank Bitcoin than this. It’s a dark day for BTC.”

Sun further claimed that integrating cbBTC into DeFi could introduce security risks, as government subpoenas could instantly freeze on-chain Bitcoin, undermining decentralization. He said:

“I’m friends with many DeFi protocol founders, but integrating cbbtc will pose major security risks to decentralized finance. A single government subpoena could freeze on-chain Bitcoin instantly, making decentralization a joke.”

Some have suggested Sun’s criticisms may stem from concerns that Coinbase’s cbBTC could encroach on the market share of BitGo’s WBTC—a project with which Sun has ties. Notably, his involvement with WBTC has sparked debate within the crypto community, as some now seek alternatives.

Mentioned in this article

Coinbase has officially launched its wrapped Bitcoin token, cbBTC, on its layer-2 network, Base, and Ethereum mainnet, according to a Sept. 12 statement.

The new product comes around a month after Coinbase teased it on the social media platform X.

cbBTC

According to Coinbase, cbBTC is an ERC-20 token fully backed by Bitcoin and custodied on the platform. When users send BTC from Coinbase to Base or Ethereum, it automatically converts to cbBTC and vice versa.

Wrapped Bitcoin tokens allow users to leverage their BTC on other networks. So, the exchange noted that cbBTC aims to drive innovative financial applications and boost Bitcoin adoption in DeFi.

Already, several major DeFi protocols, including Aave, Morpho, Sky, Compound, Aerodrome, Curve, Veda, Mellow, and the real-world asset platform Maple, have already integrated cbBTC for their users.

Moreover, cbBTC is available via the Coinbase application in Singapore, the UK, the European Economic Area, Australia, Brazil, and the US (excluding New York State). The asset will also be accessible globally on Base and Ethereum.

Data from blockchain analytics firm Arkham Intelligence shows that Coinbase holds over 984,000 BTC, valued at approximately $57 billion. Meanwhile, most of this is held for exchange-traded fund issuers like BlackRock, who custody their ETF assets with the Brian Armstrong-led exchange.

WBTC troubles

Coinbase’s launch of cbBTC comes at an interesting time as the dominant Wrapped Bitcoin token issued by BitGo WBTC faces challenges.

Over the past month, crypto users have sought alternatives to WBTC due to BitGo’s new partnership with TRON founder Justin Sun. While the firm has tried to allay these worries, critics have pointed out that Sun’s involvement poses a threat to the token due to his track record.

Due to this, several projects have been seeking to take advantage of the fallout to push a Bitcoin wrapper product.

Earlier this month, 21.co, the parent company of 21Shares, introduced its Wrapped Bitcoin product (21BTC) on the Ethereum blockchain. Prior to that, DeFi protocol Threshold has proposed merging its BTC “wrapper” token, tBTC, with WBTC in an effort to save the more popular BTC product.

Mentioned in this article

Coinbase has seen a sharp decline in market share as smaller exchanges gained ground recent months, according to a Sept. 9 report by research firm Kaiko.

Coinbase dominated more than half of the US crypto market share earlier this year, peaking at almost 55% in March. However, its market share has since fallen to 41% in early September, down from 53% in June.

The biggest beneficiary of this shift has been Bullish, whose market share nearly doubled from 17% to 33% over the same period. Unlike Coinbase, which mainly serves retail investors, Bullish primarily targets institutional clients and trading.

Founded in 2021 as a subsidiary of blockchain firm Block.one, Bullish is backed by PayPal co-founder Peter Thiel. The firm recently made headlines for its purchase of crypto-focused media outlet Coindesk.

Top 3 exchanges dominate

Meanwhile, top US exchanges have significantly expanded their market share since 2021. According to Kaiko, the three largest exchanges by volume now control nearly 90% of the market, up from 66% in April 2021.

In contrast, smaller exchanges have seen their share shrink from 34% to 11%.

Kaiko explained that this was due to several factors, including stricter regulations, reduced trading activity during the 2022-2023 bear market, and the dominance of major players like Coinbase and Kraken in institutional crypto trading.

In addition, their dominance can also be attributed to the sudden collapse of FTX in 2022 and the regulatory action against Binance.US, which all but led to the firm’s market share collapse.

Shares performance

Coinbase’s declining market share comes as British bank Barclays upgraded its stock COIN from underweight to equal weight.

The financial giant analyst Benjamin Budish noted that Coinbase has matured through product expansion and improved economic prospects.

Budish also pointed out that Coinbase will benefit from a more favorable regulatory environment. With market observers expecting the two US presidential candidates to show increased support for the crypto industry, the Brian Armstrong-led exchange could emerge as a winner in this regulatory shift.

However, the analyst cautioned that uncertainty remains, particularly around the broader economic environment and ongoing regulatory challenges. Notably, the exchange’s unresolved Securities and Exchange Commission (SEC) lawsuit casts a shadow over its operations.

Despite these challenges, Coinbase’s stock has risen by about 5% in early trading today, according to TradingView data. Yet, the company’s year-to-date performance has fallen, with its stock down 10%.

Mentioned in this article

Ripple co-founder Chris Larsen joined 87 other corporate leaders in endorsing Vice President Kamala Harris for the White House, as reported by CNBC on Sept. 6.

The letter included several other high-profile signatories, including Aaron Levie (Box CEO), Jeremy Stoppelman (Yelp CEO), philanthropist Lynn Forester de Rothschild, private equity billionaire José Feliciano, Twilio co-founder Jeff Lawson, DC sports magnate Ted Leonsis, Snap chairman Michael Lynton, and former 21st Century Fox CEO James Murdoch.

Letter Overview

According to CNBC, the letter emphasized that electing Harris as president is the best way to support democracy and the economy’s strength, security, and stability.

The signatories believe Harris would implement fair policies that uphold the rule of law and foster a stable business environment.

The letter was not aimed at swaying the public but rather positioned as a political statement to boost Harris’s profile, especially with the first presidential debate just days away.

Harris and crypto

Larsen’s backing for Harris is notable due to Ripple’s consistent advocacy for blockchain innovation and drive to ensure that pro-crypto candidates are elected. Due to this, the firm has contributed millions to Fairshake, a federal super PAC supporting pro-crypto and pro-innovation candidates.

However, Larsen’s endorsement of Harris may seem unexpected since she has not publicly shared her position on the crypto sector.

Nevertheless, Larsen’s endorsement also signals Harris’s growing support within the crypto industry.

Although much of the sector favors former President Donald Trump for his pro-crypto policies, there is increasing interest in Harris. Recently, crypto executives and advocates reportedly discussed raising $100,000 for Harris’s campaign, hoping to influence her stance on crypto regulation if she wins.

J.P. Theriot, co-founder of Uphold, also voiced his support for Harris on X (formerly Twitter). Additionally, Harris’s campaign has begun accepting crypto donations via Coinbase.

Despite this support, Harris currently trails Trump in the decentralized prediction market Polymarket.

Mentioned in this article

Ethereum’s layer-1 network has witnessed a drastic decline in revenue, plummeting by 99% since March 2024.

Data from Token Terminal reveals that network revenue peaked at over $35 million on March 5. However, by Sept. 2, daily revenue had plunged to a yearly low of around $200,000.

Market observers attribute this decline to the growth of layer-2 (L2) networks and the March Dencun upgrade, which reduced fees for L2 transactions and reshaped Ethereum’s revenue structure. Token Terminal stated:

“Key metrics that show how lower transaction fees on L2s have increased usage, but also driven down the revenue on the L1.”

Post-upgrade transaction activity has shifted from Ethereum’s mainnet to L2 networks, leading to increased daily transactions and active users on these platforms.

However, this migration has significantly impacted Ethereum’s fee revenue. For instance, Coinbase’s L2 network, Base, generated $2.5 million in revenue in August but paid only $11,000 to settle on the mainnet, underlining the shift in value from Ethereum’s base layer.

Crypto analyst Kun warned that if this trend continues, L2 networks could dominate and potentially abandon Ethereum’s mainnet, especially for consumer applications. He emphasized the need for Ethereum to develop valuable use cases on its mainnet or risk a severe valuation issue.

He added:

“ETH L1 needs valuable use cases on mainnet that cannot be sieged or you have to hope that L2 usage is so big that basically you need 100000 times the usage on L2 to get the same value you did on mainnet with a tiny fraction which then creates a valley of valuation issues.”

‘Death spiral’

Bitcoin investor Fred Krueger has echoed these concerns, suggesting that Ethereum could face a “death spiral” if its low revenue situation persists.

He pointed out that Ethereum’s current fee revenue of $200,000 per day equates to $73 million annually, far from sufficient to sustain its market cap of $300 billion.

Krueger argues that a more realistic valuation might be closer to $3 billion, underscoring the disconnect between Ethereum’s fee income model and its market valuation. He said:

“[Ethereum is] not equivalent to a company making $73 million a year in profit, or even a company making $73 million a year in revenue. That $73 million is not even sufficient to buy back all the inflation that naturally comes to ETH validators.”

Mentioned in this article

Coinbase’s layer-2 network Base has recently achieved a key milestone, hitting over 1 million daily active addresses.

According to data from blockchain analytics platform GrowThePie, the Ethereum layer-2 network surpassed the 1 million mark for the first time on Aug. 24 when its active addresses reached 1.05 million.

Blockchain analytics platform Token Terminal corroborated this and compared Base’s growth to other layer-2 networks, concluding that Coinbase’s solution has outperformed its competitors.

Record-high transactions

Unsurprisingly, this milestone has translated into a record-high number of transactions on the network.

GrowThePie’s data shows that Base processed more than 4 million transactions during the last 24 hours, while Arbitrum—the largest Ethereum layer-2 network by total value locked—facilitated only 1.97 million transactions in the same period.

Further, the decentralized exchange’s total trading activity across Base has soared recently. Per DeFillama’s data, the network now accounts for around 10% of the sector’s volume, behind Binance Smart Chain (BSC) but ahead of major layer-1 blockchain networks like Avalanche and Tron.

Notably, Token Terminal stated that the Base network accounts for 84% of the daily active addresses on Uniswap, the largest decentralized exchange in the industry.

Market analysts highlighted the significance of these numbers, noting the strong adoption of Base despite its lack of a native token, unlike other layer-2 networks. Instead, Base has been able to attract increasing users to its platform via its seamless interoperability features and introduction of several innovations.

This has propelled it to become the second-largest Ethereum layer-2 network within a year of its launch. L2Beats data shows that its market share stands at around 17%, with the total value of assets locked on it at $6.3 billion.

Basenames launch

Meanwhile, these important milestones coincide with the network’s recent launch of Basenames.

On Aug. 21, Base introduced Basenames, allowing users to purchase a name linked to their Base wallet addresses. This service, built on the Ethereum Name Service platform, aims to enhance communication between users on Base.

By Aug. 26, Base’s lead developer Jesse Pollak announced that Basenames had attracted 200,000 users in its first week. Pollak also revealed that the network is exploring using multi-address domains with Basenames, allowing users to link multiple addresses to a single name.

Mentioned in this article

Crypto exchange Coinbase said it would support the Ethereum layer-2 network Polygon planned token upgrade from MATIC tokens to the new Polygon Ecosystem Token (POL).

On Aug. 21, the exchange announced that it would begin migrating the Polygon ticker from MATIC to POL starting Aug. 26. It stated:

“In the coming months, Coinbase plans to complete the migration from MATIC to POL on behalf of users. We will provide details regarding the migration of Coinbase balances including the timeline for conversion once available.”

During the migration, sending and receiving MATIC on the Polygon network will be disabled between Aug. 26 and Sept. 10. This measure aims to ensure a smooth transition from MATIC to POL.

The exchange also revealed plans to add support for POL on the Ethereum network by Sept. 4. The firm will also support trading for both MATIC and POL on Ethereum until further notice.

Meanwhile, customers staking MATIC on Coinbase will continue to earn rewards.

According to CryptoSlate’s data, Polygon’s POL and MATIC tokens surged over 10% following the news.

POL migration

Coinbase’s announcement reflects the positive sentiments surrounding Polygon’s upcoming POL migration, scheduled for Sept. 4.

Polygon describes POL as a hyperproductive token designed to offer valuable services across all chains within the Polygon network, including AggLayer. The token will serve as the primary currency for gas fees and staking within the Proof-of-Stake (PoS) network which is fundamental to Polygon network security.

It added:

“POL will support broader roles in the Polygon staking hub (to be released in 2025), including block generation, zero-knowledge proof generation, and participation in Data Availability Committees (DACs).”

Meanwhile, the transition from MATIC to POL will occur in phases, mirroring Polygon’s broader goals to boost network efficiency.

Mentioned in this article

Editor Editor

Liam ‘Akiba’ Wright

Senior Editor at CryptoSlate

Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

Crypto exchange Coinbase has rejected claims that it breached campaign finance laws.

Alleged violations

On July 30, crypto researcher Molly White alleged that the crypto trading platform’s $25 million donation to Fairshake, a crypto Super Political Action Committee (PAC), might have violated campaign finance rules.

According to the researcher, the donation occurred around a period when the exchange was in active negotiations for a federal government contract with the US Marshals Service (USMS). The contract, assigned to Coinbase in July, required a platform to provide custody and trading services for the digital assets seized during law enforcement investigations.

White pointed out that federal laws prohibit political contributions from entities involved in federal contracts to prevent influence over the contract awarding process.

So, White stated:

“If the contribution is indeed a violation of campaign finance law, it would be the largest such violation by a huge margin — with past violations maxing out with contributions of around $1 million.”

Coinbase response

Coinbase’s Chief Legal Officer, Paul Grewal, has labeled White’s report as misinformation.

Grewal clarified that Coinbase was not a federal contractor under 11 CFR 115.1 and that USMS wasn’t paying the firm with appropriated funds. He wrote:

“Whether intentional or not, this is misinformation. Coinbase is not a federal contractor under the plain language of 11 CFR 115.1. USMS isn’t paying us with appropriated funds—something it made clear in the public RFP.”

Grewal further shared images that showed that the cited regulations defined a government contractor as an entity paid with Congress-appropriated funds. Coinbase’s payment, he explained, comes from the proceeds of forfeited assets, not USMS funds.

Another image from Grewal added:

“All funds related to this RFP will be drawn from the Assets Forfeiture Fund, which collects proceeds from the sale of forfeited property under the Department of Justice Asset Forfeiture Program.”

Mentioned in this article

Two crypto companies, Coinbase and Revolut, suffered contrasting fortunes in the hands of the UK authorities during the past week.

Coinbase fined

The UK’s Financial Conduct Authority (FCA) fined CB Payments Limited (CBPL), a subsidiary of Coinbase Group, £3.5 million ($4.5 million) for breaches related to Anti-Money Laundering.

In a July 23 notice, the FCA explained that the fine resulted from CBPL’s repeated violations of its guidelines. Initially, the fine was £5 million, but due to a settlement discount, it was reduced by 30% to £3.5 million.

In October 2020, the CBPL agreed to strengthen its financial crime control policies following a regulatory visit. This agreement included a commitment to not accept new high-risk customers without adhering to FCA guidance.

However, the FCA found that CBPL continued to onboard and serve 13,416 high-risk customers. Approximately 31% of these customers deposited nearly $24.9 million on the platform, which was then used on other Coinbase platforms for crypto transactions totaling $226 million.

Consequently, the FCA determined that CBPL failed to comply with the recommended controls. The regulator stated:

“The failings significantly increased the risk that financial crime might be facilitated by the Firm at a time when the Authority had informed CBPL that its systems and controls were not fully effective and required remediation.”

Revolut licensed

On July 25, Revolut announced it received a restricted banking license from the UK’s Prudential Regulation Authority (PRA), which oversees the banking sector.

The license comes more than three years after Revolut first applied in 2021 and initially places the firm in the mobilization stage. Francesca Carlesi, UK CEO of Revolut, said:

“It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut.”

Revolut is a challenger bank that has made significant strides in the crypto industry. In May, the firm launched Revolut X, a standalone crypto exchange designed for retail customers.

Notably, the company recently published its financial accounts for last year, showing that its revenues surpassed $2 billion and recorded profits before tax of $545 million.

Mentioned in this article