blackrock
BlackRock eyes BUIDL token as collateral in crypto derivatives market: report
BlackRock is trying to have its digital money-market token, BUIDL, used as collateral in cryptocurrency derivatives trades.
People familiar with the discussions say the company is ‘in talks’ with major crypto exchanges like Binance, OKX, and Deribit about the possibility, according to Bloomberg.
BUIDL is a token designed for qualified institutional investors, with a minimum investment of $5 million. It is a digital representation of BlackRock’s USD Institutional Digital Liquidity Fund, a money-market fund that invests in U.S. Treasury bills, cash, and other secure instruments.
BUIDL differs from traditional stablecoins like Tether’s USDT (USDT) because it pays interest to holders, which could be attractive to derivatives traders.
Is BlackRock trying to dominate stablecoins and derivatives markets?
Crypto derivatives are financial contracts that derive their value from crypto price movements. Traders use these contracts to speculate on the price of assets like Bitcoin (BTC) without actually buying them. To participate, traders often need to put down collateral, which can be in the form of stablecoins. Tether’s USDT, for example, is commonly used in this role because it maintains a stable value of $1, making it reliable for securing trades.
However, BUIDL’s entry into this space could challenge USDT’s dominance. BlackRock is hoping that more platforms will accept BUIDL as collateral, which could significantly expand its market reach, per Bloomberg.
Prime brokers FalconX and Hidden Road already allow their clients to use BUIDL as collateral, and custodian Komainu recently joined that list. These early adopters include hedge funds and other institutional investors.
Crypto derivatives trading accounted for over 70% of all crypto trading volume in September, with $3 trillion worth of contracts traded that month alone, according to research firm CCData.
That makes derivatives a huge part of the crypto ecosystem, and having BUIDL accepted on major exchanges like Binance and Deribit could position BlackRock as a major player in this market.
Source link
I’ll admit – just a few years ago, I’d be shocked to hear myself say that the CEO of BlackRock is making good points about Bitcoin.
As head of the world’s largest asset manager, I assumed Larry Fink would be Bitcoin’s biggest critic. But compared to dismissive remarks on Bitcoin from other Wall Street leaders like Jamie Dimon, Fink’s perspective is a refreshing change.
If you think otherwise, yesterday’s earnings call proves it.
There, Fink declared, “I’m not sure if either president would make a difference” on Bitcoin’s growth,” adding “I don’t believe [Bitcoin’s rise] is a function of regulation.”
He went on to compare Bitcoin’s growth to much larger markets like mortgages, noting liquidity and transparency drives adoption more than rules.
Here's full Larry Fink quote on bitcoin/digital assets from the Q3 earnings call, he says bitcoin asset class in itself, they talking with institutions worldwide about allocation, dig assets remind him of the early days of the mortgage market (now $11T) and POTUS won't make dif pic.twitter.com/McvpW7cCnB
— Eric Balchunas (@EricBalchunas) October 14, 2024
It’s wild that the CEO of an $11 trillion company is not just embracing Bitcoin, but that he gets that Bitcoin thrives because it is an apolitical, decentralized, global money.
Regulation aside, Bitcoin marches on indifferently. Fink seems to grasp what many Bitcoiners don’t – that political winds don’t sway Bitcoin’s course long-term. Neither Donald Trump or Kamala Harris can stop Bitcoin from setting new all-time highs.
Bitcoin thrives on its own technical merits, not regulatory benevolence.
This independence was always its promise. Now, the world’s financial giants aren’t fighting it, but joining in. Bullish.
Source link
In BlackRock’s third-quarter earnings call with analysts on Friday, CEO Larry Fink mentioned that Bitcoin (BTC) could be as big as the $50 trillion housing market. This forecast from the executive of the world’s largest asset manager is likely to have an impact on Bitcoin price.
Let’s explore how much BTC’s price could be worth if its market cap hits $50 trillion.
Bitcoin Price If BTC Hits $50 Trillion According to BlackRock CEO
Although Larry Fink did not mention that Bitcoin will be as big as the Housing Market, he implied it using the mortgage market as an analogy. Fink said that the mortgage market also started slow when BlackRock ventured into it. However, as the asset manager built better infrastructure, data, and analytics, the stalling market exploded. To end this, Fink added that digital assets like Bitcoin are also stalling in a similar fashion and could explode.
BTC’s current market cap is $1.3 trillion, and if it hits the same size as the US housing market, which is worth $50 trillion, Bitcoin’s price could explode.
A simple calculation shows that $50 trillion is 38.46 times more than the current market cap of Bitcoin. If such a valuation were to come true, the current BTC price of $65,000 needs to inflate to $2.5 million.
If the BlackRock CEO’s analogy comes to pass and BTC market cap explodes to $50 trillion then Bitcoin price would be worth $2.5 million.
Expert Analysts Forecast BTC Price Crash
Experts are suggesting that Bitcoin price is set to correct after a massive run up to $67,200 in the past week. This outlook is similar to CoinGape’s Monday article that showcased how Open Interest (OI) ceiling could trigger a correction for Bitcoin.
Popular analyst CredibleCrypto posted to his X that the last three local tops for Bitcoin displayed similar signs. At or around a potential top spot volume starts to decline while perpetual volume rises. This signal indicates that the spot holders are booking profits while futures volume is on an uptrend. This shows that futures traders are bullish, which can be seen in an increased OI and spike in perpetual volume.
In CredibleCrypto’s words, ”spot [investors are] selling off at these highs into supply while perps keep trying to long with extremely high OI buildup”
CredibleCrypto also added, ”I was very vocally bearish at both of those local tops because of the data that I shared below, and we are seeing the same data present itself once more.”
Regardless, the long-term Bitcoin price prediction hints at a bullish outlook with BTC potentially reaching the six-digit territory.
Frequently Asked Questions (FAQs)
Larry Fink predicted that Bitcoin’s market cap could potentially hit $50 trillion, comparable to the US housing market.What did BlackRock CEO Larry Fink predict about Bitcoin’s market cap? A: Larry Fink predicted that Bitcoin’s market cap could potentially hit $50 trillion, comparable to the US housing market.
According to calculations, if Bitcoin’s market cap reaches $50 trillion, its price could increase to approximately $2.5 million.
Yes, some experts, including CredibleCrypto, predict a short-term price correction for Bitcoin due to declining volume and rising open interest.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source link
In the latest development, the Ethena community introduced a new proposal that seeks to use Ethereum’s Layer-1 competitor Solana as a reserve asset for its synthetic dollar USDe. This development has sent the Ethena (ENA) price soaring by another 17% today to $0.39 thereby taking its market cap above $1.06 billion.
Ethena to Use Solana As A Backing Asset for USDe
Earlier today, the Ethena community introduced a new proposal for backing its synthetic dollar USDe. Interestingly, this Solana-backing mechanism proposal from Ethena is similar to the hedging mechanism employed by Ethena for BTC and ETH perpetual futures.
In addition to SOL, the proposal suggests adding Binance Liquid Staked SOL (BNSOL) and Bybit Liquid Staked SOL (bbSOL) as eligible backing assets for USDe. Thus, this expansion seeks to diversify the asset pool supporting the synthetic dollar, thereby enhancing its ability and utility in decentralized finance (DeFi).
In August this year, Ethena launched its USDe stablecoin on the Solana blockchain using Layerzero’s OFT standard. The official announcement from the Ethena Foundation reads:
“The proposed allocation would be scaled into slowly in consultation with the Risk Committee considering SOL perpetual futures shorter history of trading, less liquidity, and less historical funding rate data”.
The inclusion of Solana-backing can boost the Ethena Finance protocol revenue through SOL funding rates while unlocking $2-3 billion in additional open interest. This will allow Ethena to scale USDe beyond its current supply of $2.5 billion and thus cater to the market demand.
Etherna’s USDe Synthetic Dollar has gained huge traction in a very short period by gaining a $2.5 billion market cap and seeks direct competition with Tether. The USDe is also the first scalable, censorship-resistant, and stable crypto-native solution where it ensures peg stability using delta hedging derivatives positions.
Also, Ethena’s recent launch of the UStb stablecoin in partnership with BlockRock and Securitize strengthens its market presence, positioning USDe as a strong contender in the stablecoin space.
ENA Price Jumps 17%
ENA, the native cryptocurrency of Ethena saw a strong surge this past week moving closer to $0.40. As of press time, the ENA price is up 17% to $0.3869 with its market cap once again crossing over $1 billion amid strong bullish action. On the weekly chart, the ENA price is up by 28%.
The technical chart parttern shows that the recent breakout could lead to immediate ENA price targets of $0.5080 and $0.69. If it successfully breaches these levels, it could attain it all-time high of $1.5.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source link
It Takes a Fake Token to Catch a Volume Faker
BlackRock eyes BUIDL token as collateral in crypto derivatives market: report
BTC Holds $68K, Altcoins Gain In Sync, SAND Up 12%
Analyst Points To Key Bitcoin Metric Indicating A Strong Uptrend—$90K in Sight?
Is Trump Just Using Crypto Voters? Harris isn’t Innocent Too
Lawyer Calls Out Mistakes In Brad Garlinghouse & Chris Larsen’s Deal
El Salvador Survey Shows Bitcoin’s Lindy Effect in Action
JPMorgan Chase, Bank of America, Wells Fargo and Citi Lose $6,900,000,000 From Sour Loans As Analyst Warns Notorious Debt Bubble Is Popping
US jails man for 5 years over $20m crypto fraud
Shiba Inu Price Makes End-of-Correction Pattern For 48% Rally
Can Bitcoin Now Make A New All-Time High
Bluesky Signups Surge After Elon Musk’s Twitter Says AI Can Be Trained on Tweets
SHIB proves to be a solid bet for traders, new money eye Sutoshi’s growth in 2025
Fed Governor Christopher Waller Reveals DeFi’s Role In Global Finance
Bitcoin Model T: Perfection Doesn't Need Improvement
182267361726451435
Top Crypto News Headlines of The Week
Ethereum, Solana touch key levels as Bitcoin spikes
Bitcoin Open-Source Development Takes The Stage In Nashville
Why Did Trump Change His Mind on Bitcoin?
Bitcoin 20% Surge In 3 Weeks Teases Record-Breaking Potential
New U.S. president must bring clarity to crypto regulation, analyst says
Ethereum Crash A Buying Opportunity? This Whale Thinks So
Will XRP Price Defend $0.5 Support If SEC Decides to Appeal?
Shiba Inu Price Slips 4% as 3500% Burn Rate Surge Fails to Halt Correction
‘Hamster Kombat’ Airdrop Delayed as Pre-Market Trading for Telegram Game Expands
Citigroup Executive Steps Down To Explore Crypto
Mostbet Güvenilir Mi – Casino Bonus 2024
Bitcoin flashes indicator that often precedes higher prices: CryptoQuant
Crypto Market Movers: 5 Altcoins Making Waves This Bull Run
1 month ago182267361726451435
24/7 Cryptocurrency News2 months agoTop Crypto News Headlines of The Week
Bitcoin3 months agoEthereum, Solana touch key levels as Bitcoin spikes
Opinion3 months agoBitcoin Open-Source Development Takes The Stage In Nashville
Donald Trump3 months agoWhy Did Trump Change His Mind on Bitcoin?
Bitcoin3 months agoBitcoin 20% Surge In 3 Weeks Teases Record-Breaking Potential
News2 months agoNew U.S. president must bring clarity to crypto regulation, analyst says
Altcoins3 months agoEthereum Crash A Buying Opportunity? This Whale Thinks So
✓ Share: