The attempted recovery by the market following last week’s dramatic collapse has been rather uneven and choppy, even the planned upgrades to the Ethereum network have failed to act as a catalyst for the next move. As pointed out last week, it is Golden Week holiday in China and trading volumes are likely to be impacted as a result. Looking at the DeFi market, the amount of BTC locked continues to decline (90-day low), while all the same, ETH locked in DeFi is close to a 90-day high and not far from an all-time high. Maker dominance is just over 50%, and 1.41% of total ETH supply is locked in MakerDAO smart contracts.
The rating agency Morningstar Credit Ratings, whose parent company Morningstar Inc made its name rating mutual funds from the likes of Prudential, Morgan Stanley and TDAmeritrade, is on the verge of rating a number of investment opportunities similar to bitcoin but backed by real-world assets. According to press reports, Morningstar is working on two efforts designed to change the way debt securities are rated on a blockchain. The first will put Morningstar’s system for rating bonds directly on the Ethereum blockchain and eventually on other blockchains, through a technology called an oracle.
While Ethereum has been the preferred choice for financial institutions to experiment with blockchain technology, it is worth remembering that in early September, a multi-billion-dollar asset management company Franklin Templeton Investments filed a preliminary prospectus with the US Securities and Exchange Commission (SEC) for a money market fund whose shares would be recorded on the Stellar Network. The plan requires the SEC’s approval. The fund would not invest in any cryptocurrencies or crypto projects. Rather, “the ownership of the Fund’s shares may be maintained and recorded solely on the Stellar network”, the prospectus says.
However, such experiments are not limited to financial sector alone and IKEA Iceland announced that it has used Ethereum technology to settle an invoice with a local retailer, accepting payment in blockchainified digital cash. Supply chain payments firm Tradeshift facilitated the transfer using an Ethereum-based version of the Icelandic króna, created by ConsenSys-backed startup Monerium.
Finally, the much-anticipated messaging service Telegram will launch its Telegram Open Network (TON) in late October. In an Oct. 2 message in the official TON Board on Telegram, the firm states that original investors were informed that the blockchain network would launch later this month. Investors are provided with TON key generation software and will be required to provide Telegram with a public key to receive their Gram (GRM) tokens — the platform’s native token — by Oct. 16th. It is worth noting that the network will purportedly be compatible with the Ethereum network, allowing users to port their Ethereum smart contracts over to TON.
Thank you for reading,
The BeQuant’s Analytics team