<h2>Synthetic Stablecoin Leader Expands Scope</h2><a href="https://coin360.com/coin/ethena-ena">Ethena</a>, the protocol behind the $6 billion&nbsp;<a href="https://coin360.com/coin/ethena-usde-usde">USDe</a> stablecoin, has announced ambitious plans to redefine financial services by evolving into a neobank. Launched in early 2024, Ethena has rapidly gained prominence, capturing 85% of on-chain USD asset growth in its debut year, excluding&nbsp;<a href="https://coin360.com/coin/tether-usdt">USDT</a> and&nbsp;<a href="https://coin360.com/coin/usd-coin-usdc">USDC</a>. With an annualized run-rate exceeding $1.2 billion, it is the second-fastest crypto startup to achieve $100 million in revenue, trailing only&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a>-based Pump.fun.The protocol's latest move focuses on expanding its product suite to bridge traditional finance and blockchain technology. Ethena’s founder, known simply as “G,” outlined the roadmap in a&nbsp;<a href="https://mirror.xyz/0x29a99F7Fe080F72223dAd48D5E1E86670a984326/zM601bYC8Tqhh2Yg5JbWdbwUVFSDBV_aV7ipxHoOFvM">blog post</a>, revealing plans to launch a dollar savings product and a Telegram-integrated payment solution in 2025. These offerings aim to leverage Ethena's existing infrastructure while introducing fintech tools to a broader audience. Ethena also recently debuted USDtb, a fiat-backed stablecoin linked to U.S. Treasurys through BlackRock’s BUIDL fund, diversifying its product portfolio.At the core of Ethena’s expansion is iUSDe, a new institutional-grade token designed to bring crypto-native returns into the realm of regulated finance. This token replicates the rewards structure of sUSDe but includes a programmable “wrapper” to comply with traditional financial oversight. Financial institutions can gain exposure to iUSDe through special-purpose vehicles (SPVs) managed by regulated investment firms, bypassing the need to interact directly with crypto infrastructure. According to G, the product offers a compelling value proposition: superior risk-adjusted yields stemming from crypto arbitrage strategies.Ethena’s synthetic dollar, USDe, maintains its peg to the U.S. dollar through a carry trade that arbitrages&nbsp;<a href="https://coin360.com/coin/ethereum-eth">ETH</a>&nbsp;<a href="https://coin360.com/glossary/futures-contracts">futures</a> and spot prices, capitalizing on market convergence trends. This mechanism has made USDe a preferred collateral asset across 60% of centralized exchanges, driving its integration into offerings from algorithmic stablecoin issuers like&nbsp;<a href="https://coin360.com/coin/frax-share-fxs">Frax</a> and Sky. Ethena’s approach has positioned it as a significant player in both&nbsp;<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a> and CeFi, capturing 7% of open futures interest in crypto markets.The push into regulated markets signals a new phase for Ethena. By pricing iUSDe as a spread to risk-free U.S. Treasury yields, G believes it will attract asset managers, ETFs, and private credit funds. Ethena’s model not only taps into the unique negative correlation between crypto-native rates and traditional finance but also scales to meet the demands of larger capital markets.Beyond institutional products, Ethena is doubling down on payments innovation. Its Telegram app, built on the&nbsp;<a href="https://coin360.com/coin/toncoin-ton">TON</a> blockchain, will feature direct mobile tap payments, integrating seamlessly with Apple Pay for Telegram’s billion-strong user base. This effort targets&nbsp;<a href="https://coin360.com/coin/tether-usdt">Tether</a>’s dominance as a payment tool by making USDe a viable alternative for transactions.Further developments include the launch of Ethereal, a bespoke appchain for crypto spot and perpetuals trading, and Derive, a protocol offering on-chain options and structured products. Ethena also plans to expand USDtb integrations across centralized exchanges, incentivizing platforms to adopt the asset through shared economics.Reflecting on the protocol’s journey, G described 2024 as a foundational year that set the stage for unprecedented disruption in 2025. Ethena’s ambitions, which aim to challenge traditional financial systems, underscore its mission to scale blockchain technology into mainstream financial markets. With a clear regulatory path and innovative products in its arsenal, the protocol appears poised to reshape how money moves across the internet.This article has been refined and enhanced by ChatGPT.

Humanoid robot flips iUSDe token near pastel network nodes

Humanoid robot flips iUSDe token near pastel network nodes_11zon.webp

Ethena Aims for 'Neobank' Status with Telegram Payments and iUSDe Token Launch

<h2>FOIA Documents Shed Light on Regulatory Concerns</h2>The Federal Deposit Insurance Corporation (FDIC) appears to have discouraged member banks from leveraging public blockchain networks like&nbsp;<a href="https://coin360.com/coin/ethereum-eth">Ethereum</a>, according to unredacted documents obtained by&nbsp;<a href="https://coin360.com/review/coinbase">Coinbase</a>. These revelations, released Friday, provide a rare glimpse into the federal agency's behind-the-scenes scrutiny of cryptocurrency-related banking services. The documents, secured through the Freedom of Information Act (FOIA), include 23 heavily redacted letters initially obtained last month and&nbsp;<a href="https://www.fdic.gov/foia/history-associates-inc-v-fdic-fdics-redacted-pause-letters-january-3-2025">two additional letters</a> unveiled in near-full detail following a court order.One of the most revealing letters, dated March 2022, highlights a case where the FDIC took issue with a New York-based bank's plans to launch a “Bank Digital Deposit” program on a public blockchain. Although the specific blockchain remains undisclosed, the regulator's concerns centered on the use of decentralized, permissionless networks like Ethereum and&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a>.&nbsp;Unlike private blockchain systems used for central bank digital currencies, public blockchains are transparent and immune to third-party intervention. This level of openness, it seems, conflicts with the FDIC’s preference for controlled, permissioned systems. The letter further required the bank to undergo a detailed review process before moving forward with its blockchain-based services.Additional correspondence unveiled on Friday exposes a broader regulatory pushback against banks engaging in cryptocurrency-related activities. The FDIC directed member banks to halt initiatives involving&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a> transactions and suspend all crypto asset-related activities. These instructions align with earlier disclosures suggesting a coordinated effort by federal agencies to limit banking services supporting the crypto sector.&nbsp;Coinbase Chief Legal Officer Paul Grewal pointed to the documents as evidence of what he described as “Operation Chokepoint 2.0,” an alleged Biden administration effort to stifle the crypto industry through banking regulations.<figure class="image"><img alt="tweet_1875226182662418471_20250104_201953_via_10015_io.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1875226182662418471_20250104_201953_via_10015_io_b12d8a6699.png"></figure>“This shows a coordinated effort to stop a wide variety of crypto activity,” Grewal&nbsp;<a href="https://x.com/iampaulgrewal/status/1875226182662418471">stated</a> on X, formerly Twitter, referencing the released letters. His remarks draw parallels to a similar strategy under the Obama administration, which targeted industries like firearms and payday lending. The FDIC’s actions, as revealed in these documents, underscore the ongoing tension between regulators and the crypto industry, raising questions about the future of blockchain innovation in the U.S. banking system.This article has been refined and enhanced by ChatGPT.

Robot balancing on blockchain cubes in a futuristic pastel landscape_11zon.webp

FDIC Pushes Back on Banks Using Public Blockchains

<h2>Ambitious Funding Plan Targets Record Bitcoin Accumulation</h2>MicroStrategy, the largest corporate holder of&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a>, unveiled plans to raise $2 billion through a&nbsp;<a href="https://coin360.com/glossary/understanding-crypto-perpetual-futures">perpetual</a> preferred stock offering to bolster its aggressive Bitcoin acquisition strategy. This move underscores the company’s commitment to its ambitious&nbsp;<a href="https://www.microstrategy.com/press/microstrategy-to-target-a-capital-raise-of-up-to-2-billion-of-preferred-stock_01-03-2025">“21/21” plan</a>, which aims to secure $42 billion in funding over three years through a mix of equity and fixed-income securities. The latest offering, detailed in a January 3 statement, is separate from this overarching strategy and designed to further strengthen the firm’s balance sheet.MicroStrategy’s Bitcoin-focused strategy has been a defining characteristic of the company’s approach under Executive Chairman Michael Saylor. Over the past year, the firm purchased 257,250 Bitcoin—its largest acquisition year to date—bringing its total holdings to 446,400&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">BTC</a>, valued at $43.9 billion according to Bitcoin Treasuries. With an average acquisition cost of $62,500 per Bitcoin, MicroStrategy has achieved a 57.2% gain on its investment amid Bitcoin’s 121% annual price surge.<div class="raw-html-embed"><blockquote class="twitter-tweet">Analysis on <a href="https://twitter.com/search?q=%24MSTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$MSTR</a> Preferred Stock Target Raise *MicroStrategy to Target a Capital Raise of Up to $2 Billion of Preferred Stock* link: <a href="https://t.co/cSLDnRw1Xp">https://t.co/cSLDnRw1Xp</a> (Very long post, trigger warning) First, what is a preferred stock? If you want a good primer, here's a <a href="https://twitter.com/PrestonPysh?ref_src=twsrc%5Etfw">@PrestonPysh</a>… <a href="https://t.co/ggmVDko4kd">pic.twitter.com/ggmVDko4kd</a>— Dylan LeClair (@DylanLeClair_) <a href="https://twitter.com/DylanLeClair_/status/1875370312235356446?ref_src=twsrc%5Etfw">January 4, 2025</a></blockquote> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>Despite these gains, the stock market reaction to the proposed offering has been mixed. Shares of MicroStrategy (MSTR) dropped 0.19% following the announcement, closing at $339.6 on January 3. This marks a sharp contrast to the company’s 438% year-over-year increase in share price, which has been bolstered by Bitcoin’s rally and the firm’s inclusion in the Nasdaq 100 index in December. However, after-hours trading on Monday saw MSTR shares dip below $300, a staggering 46% decline from their November peak of $543.Critics have raised concerns about the sustainability of MicroStrategy’s funding approach, which relies heavily on increased debt and equity issuance. The Kobeissi Letter described the firm’s proposal to expand Class A common shares by 10 billion and preferred shares by one billion as a “lose-lose” scenario, potentially diluting shareholder value or limiting the company’s capacity to leverage further Bitcoin purchases.The perpetual preferred stock offering, expected to take place within the current quarter, remains subject to market conditions and the company’s discretion. Categorized as “senior” to its Class A common stock, the offering prioritizes holders in the event of bankruptcy or&nbsp;<a href="https://coin360.com/glossary/understanding-liquidation-crypto-trading-guide">liquidation</a>. MicroStrategy has outlined several potential execution methods, including converting Class A shares, paying cash dividends, or redeeming shares, leaving room for flexibility.MicroStrategy’s unrelenting focus on Bitcoin has both fueled its market gains and exposed it to significant volatility. The company’s “21/21” strategy aims to raise $21 billion each in equity and fixed-income instruments, a plan that aligns with its reputation as a Bitcoin pioneer. However, with MSTR shares losing nearly half their value since November, questions remain about the balance between bold ambitions and financial risks.This article has been refined and enhanced by ChatGPT.

Robot atop a pastel cliff, projecting Bitcoin logo

Robot atop a pastel cliff, projecting Bitcoin logo_11zon.webp

MicroStrategy Eyes $2 Billion Stock Offering to Fuel Bitcoin Stash

<h2>Developer Claims Revolutionize Blockchain Security</h2>A&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a> developer has&nbsp;<a href="https://x.com/deanmlittle/status/1875136565456109891">asserted</a> that the blockchain has achieved quantum resistance, a potential game-changer in the ongoing effort to protect digital assets against the rapidly advancing field of quantum computing. This bold claim, if substantiated, places Solana at the forefront of blockchain security, addressing concerns that quantum computers could one day undermine cryptographic protections.This feature is known as the&nbsp;Solana Winternitz Vault. This vault leverages a hash-based signature system that generates new keys for every transaction, ensuring funds remain secure against the theoretical risks posed by quantum computers. While this implementation is optional and not a network-wide upgrade, it offers an advanced layer of security for users who actively choose to store their assets in these quantum-resistant vaults.<figure class="image"><img alt="tweet_1875136565456109891_20250104_194102_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1875136565456109891_20250104_194102_via_10015_io_11zon_1ee63e144b.jpg"></figure>The quantum threat lies in the potential for advanced computers to crack cryptographic algorithms, specifically the Elliptic Curve Digital Signature Algorithm (ECDSA) used widely in blockchain technology. Public keys exposed during transactions could theoretically allow quantum machines to deduce private keys, endangering users' funds.&nbsp;To counter this, the Winternitz Vault hashes 32 private key scalars 256 times to generate a public key, storing only its hash for verification. This protocol ensures every transaction closes the current vault and opens a new one with fresh keys—much like requesting a new credit card number after every purchase, making it nearly impossible for attackers to intercept the process.Dean Little, the developer behind this project, highlighted the use of Winternitz One-Time Signatures, a cryptographic technique rooted in the work of David Chaum and Lamport, early pioneers in cryptography. “The irony is not lost on me that we are using Lamport's work to secure lamports,” Little quipped, referring to Solana’s native token.&nbsp;This innovation adds a dynamic layer to Solana’s security arsenal, even as the broader network thrives. At press time, Solana’s price had surged to $216, marking an 18% weekly increase, with an 85% likelihood of an SEC-approved ETF predicted by Polymarket.<figure class="image"><img alt="chart_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/chart_11zon_34b638a6e1.jpg"></figure>The conversation around&nbsp;<a href="https://coin360.com/learn/quantum-computing-crypto-threat">quantum resistance in blockchain</a> has gained traction in recent years, spurred by advances like Google's 2019 achievement of "quantum supremacy." Their 53-qubit computer performed computations in 200 seconds that would take classical systems 10,000 years. More recently,&nbsp;<a href="https://coin360.com/news/quantum-computing-crypto-impact">Google’s Willow chip</a> demonstrated unprecedented computational power, completing tasks in five minutes that the fastest supercomputers would require seven septillion years to replicate.Despite these advancements, experts agree that true quantum threats to blockchain security remain years or decades away. Cornell University researchers estimate that breaking a 160-bit elliptic curve cryptographic key would demand at least 1,000 qubits, far surpassing current technology. However, developers are preparing proactively. Ethereum co-founder Vitalik Buterin has emphasized quantum resistance in Ethereum's roadmap, while Ava Labs founder Emin Gün Sirer has suggested freezing Satoshi Nakamoto’s BTC holdings to mitigate future quantum risks.Solana’s achievement aligns with a broader trend in Web3: staying ahead of potential threats. Some blockchain projects, like QAN and Praxxis, have already introduced quantum-resistant features, even as mainstream adoption of quantum computing lags. Experts speculate that quantum computing power may grow at a double exponential rate, a concept known as Neven’s Law. This forecast has pushed blockchain developers to prioritize scalability, privacy, and security enhancements, ensuring their networks are prepared for a quantum-powered future.While the Winternitz Vault is not yet a universal standard on Solana, its introduction reflects the network’s forward-thinking approach to innovation. If the developer's claims hold, Solana sets a benchmark for blockchain security, highlighting the sector's proactive stance in addressing risks before they materialize. As quantum technology advances, the race to safeguard digital ecosystems continues, with Solana leading the charge.This article has been refined and enhanced by ChatGPT.

Quantum-resistant robot generates keys in digital vortex

Quantum-resistant robot generates keys in digital vortex_11zon.webp

Solana Developers Claim Achievement of Quantum Resistance

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Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | December 28, 2024 - January 3, 2025

<h2>A Rebranding Effort Marks a Fresh Chapter</h2><a href="https://coin360.com/review/binance">Binance</a> Labs, the venture capital arm that spun off from the Binance cryptocurrency exchange earlier this year, has announced&nbsp;<a href="https://twitter.com/BinanceLabs/status/1874007058011328949">plans to rebrand</a> in 2025. This strategic pivot underscores its evolving vision to distance itself from Binance while sharpening its focus on long-term, foundational investments. The rebranding reflects a deliberate move to establish an independent identity, following its transformation into a separate entity.<figure class="image"><img alt="tweet-1874007058011328949_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1874007058011328949_11zon_f73b5f0af4.jpg"></figure>Founder Changpeng Zhao (CZ), permanently barred from Binance’s leadership due to legal restrictions, will now play a pivotal role in driving investments. CZ’s active involvement signals a notable shift, as he dedicates more time to fostering connections with emerging and established blockchain projects. His return to the forefront of industry engagement marks a significant development for Binance Labs, which aims to expand its investment portfolio into secondary markets, over-the-counter (OTC) deals, and other promising opportunities.<figure class="image"><img alt="tweet_1874007074327421109_20250101_002730_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1874007074327421109_20250101_002730_via_10015_io_11zon_fe7eaaf7b1.jpg"></figure>Binance Labs has reported an eventful 2024, with 46 investments spanning multiple sectors. Among these, 14 projects emerged from initiatives like the&nbsp;<a href="https://coin360.com/coin/binance-coin-bnb">BNB</a> Chain-focused MVB program and the chain-agnostic Labs Incubation program, while 32 were direct investments. The year’s portfolio demonstrates diversity, featuring a balanced 50-50 split between infrastructure and application-oriented deals.&nbsp;The breakdown reveals notable allocations to decentralized finance (<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a>), artificial intelligence, and the&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a> ecosystem, alongside emerging fields such as decentralized science (DeSci) and the “Move” system. Major platforms like&nbsp;<a href="https://coin360.com/coin/ethereum-eth">Ethereum</a>,&nbsp;<a href="https://coin360.com/coin/solana-sol">Solana</a>, and Berachain also attracted significant attention. Notably, 20% of investments supported projects within the BNB ecosystem, reflecting Binance Labs’ continued commitment to its roots.As the industry anticipates a more favorable regulatory environment under the pro-crypto Trump administration in 2025, Binance Labs is preparing for new opportunities. The firm plans to focus on cutting-edge intersections of blockchain, AI, and biotech, aiming to drive innovations in underperforming sectors such as gaming and privacy solutions. With its expanded investment strategies and CZ’s direct involvement, Binance Labs is positioning itself as a key player in the evolving cryptocurrency landscape.This article has been refined and enhanced by ChatGPT.

A cubic humanoid robot leaps toward crypto innovation amidst blockchain swirls and merging circuits

Binance Labs to Rebrand and Implement New Investment Strategies with CZ's Involvement

A Rebranding Effort Marks a Fresh Chapter

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Ethena Aims for 'Neobank' Status with Telegram Payments and iUSDe Token Launch

FDIC Pushes Back on Banks Using Public Blockchains

MicroStrategy Eyes $2 Billion Stock Offering to Fuel Bitcoin Stash

Solana Developers Claim Achievement of Quantum Resistance

Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | December 28, 2024 - January 3, 2025