BlackRock’s Bullish Crypto Guidance, Breaking Crypto With Google’s Willow & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• Breaking Crypto: Can quantum technology break modern cryptography?

• Uranium Digital: The first institutional-grade spot trading platform for uranium.

• Cash Engine: Solana generates more fees than all other L1s combined.

What does it mean when both Goldman Sachs and BlackRock are increasingly bullish on crypto? I’ll let you connect the dots.

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

Onchain Banking

Treasury solutions and savings accounts remain some of the most profitable services for traditional banks. However, these offerings often prioritise the banks’ bottom lines over delivering real value to enterprises and individuals.

When it comes to treasury solutions, forward-thinking CFOs and treasurers are reimagining the role of treasury, transitioning it from a historical record-keeping function to a more strategic approach that oversees enterprise-wide liquidity. As a result, treasurers now demand technology platforms with predictive liquidity and cash-flow modeling capabilities that include e.g. cross-border positions and multi-currency exposure. 

Unfortunately, traditional banks often fall short, only offering standardised solutions that fail to meet specific operational needs. Also, conventional treasury solutions often lack real-time financial data, hindering timely decision-making, and fail to address growing cybersecurity concerns, leaving treasurers frustrated.

For retail customers, the shortcomings are even more pronounced. In the U.S., for example, banks have reaped massive surpluses by not passing on profits from a higher interest rates environment to savings account holders. In 2023, the four largest U.S. banks — JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup — amassed a record $253 billion in combined NII, largely by offering meagre yields to their savings account customers.

Additionally, traditional banks continue to operate with limited hours, slow and expensive services, clunky and siloed offerings, as well as outdated user experiences. Moreover, customers increasingly face the risk of being debanked, further eroding trust. Traditional financial institutions, however, have little incentive to change — they simply profit immensely from this system.

This, essentially, has paved the way for crypto-powered banking services to disrupt traditional finance. Banking on crypto rails offers a compelling alternative:

• 24/7 accessibility

• High yields on stablecoins

• Frictionless access to DeFi (e.g. lending & derivatives)

• Innovation and customisation (e.g. smart accounts)

• Instant and low-cost transactions (e.g. payments & remittances)

• And most importantly: Self-custody, eliminating the risk of being debanked

While onchain banking lacks FDIC insurance, risks could be mitigated through cyber, crime, and E&O insurance policies. Enterprises and individuals should, therefore, consider allocating portions of their treasury and savings to explore the benefits of banking on crypto rails.

The race is on to onboard the masses to onchain banking. The winners will be the platforms that build the strongest onboarding flywheel and deliver seamless, user-friendly experiences — empowering businesses and individuals to finally break free from the constraints of traditional banking.

Charts Of The Week

News Bites

Growth Story: BTC Spot ETFs have seen tremendous success this year, emerging as one of the most notable financial product launches to date. Yet, Bitwise suggests that the real growth story is only just beginning.

Breaking Cryptography: Google recently unveiled Willow, a cutting-edge quantum chip, sparking speculation about its potential to compromise blockchain security. However, according to Charles Guillemet, CTO at Ledger, we’re still a long way from quantum technology breaking modern cryptography.

Uranium Digital: Retail traders have long struggled to access uranium and nuclear energy markets. Uranium Digital is changing that with the launch of the first 24/7 institutional-grade spot trading platform for uranium — powered by Solana.

Stablecoin Payments: Stablecoin adoption is soaring. If you’re not convinced of the efficiency of stablecoin payments compared to traditional payment methods, this report might change your perspective.

Combating Counterfeits: Baxus, Bond, and Iridia have teamed up to introduce a novel authentication method that combines blockchain technology and molecular science to tackle counterfeiting in the global spirits industry.

Developer Magnet: According to Electric Capital, 7,625 developers joined the Solana community this year, establishing Solana as the leading ecosystem for new developers in 2024 — surpassing other prominent ecosystems such as Bitcoin, Ethereum, Aptos, and Sui.

History Made: On December 12th, Zeus Network validated the first Bitcoin transactions on Solana, marking a historic milestone for cross-chain interoperability.

Network Scalability: Solana core developers have approved a proposal to increase block limits — a small, yet calculated move to support the network’s long-term scalability goals.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

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Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}