USDFinancial Giants Ramp Up Crypto Products as Market Matures: Weekly Roundup
Wall Street Banks Embrace Crypto as Trump’s Pro-Crypto Policies Ignite IPO Opportunities
According to a Bloomberg report, Wall Street banks are increasingly embracing the crypto sector, driven by President Donald Trump’s pro-crypto policies. Major financial institutions such as Morgan Stanley, Bank of America, and RBC are reassessing their positions, anticipating a wave of initial public offerings (IPOs) and capital market activities. Trump’s administration has created a more supportive regulatory environment, evidenced by the establishment of a U.S. Securities and Exchange Commission crypto task force led by Hester Peirce.
Companies like Gemini and Kraken are preparing for IPOs, with banks eager to facilitate these deals. Notably, under Trump, the regulatory hurdles that previously stifled crypto IPOs have diminished. Bank of America’s CEO highlighted that traditional banks will actively enter the sector with clearer regulations. Furthermore, Trump signed an executive order aimed at creating a U.S. sovereign wealth fund, a move viewed favorably for the crypto industry.
B3 Stock Exchange to Launch Ether and Solana Futures, Expanding Crypto Investment Options
The B3 Stock Exchange, Brazil's largest, is set to expand its cryptocurrency offerings by launching futures contracts for ether and solana, responding to increasing demand for diverse investment options. CFO Andre Milanez announced plans for these derivatives by year-end, indicating a growing market interest alongside existing bitcoin futures, which have seen approximately $860 million traded monthly. The exchange's commitment to enhancing crypto trading was evident last year, driven by the surge in bitcoin prices surpassing $100,000, which led to record trading volumes for crypto-based exchange-traded funds (ETFs) in Brazil.
B3 President Gilson Finkelsztain also suggested the potential rollout of bitcoin options this year, further broadening investment opportunities. The introduction of futures for solana and ether aims to attract institutional investors by providing exposure to these prominent cryptocurrencies without necessitating direct ownership or complex custody arrangements. Overall, B3 is positioning itself as a pivotal player in the expanding crypto market.
Sol Strategies Expands SOL Holdings to 214K, Tapped for 3iQ's Solana Staking ETF
As of February 10, 2025, Sol Strategies Inc., a Canadian investment firm, acquired an additional 24,374 SOL for CAD $7.3 million, bringing its total holdings to 214,342 SOL, worth approximately USD $41.2 million. The firm, formerly Cypherpunk Holdings, focuses on Solana’s blockchain, leveraging its infrastructure for DeFi, validator operations, and liquidity. Despite a recent 9.9% stock drop, its shares surged over 3000% in six months, outpacing Solana’s 50% gain.
Meanwhile, on February 11, 2025, Sol Strategies was selected as the staking provider for 3iQ’s proposed Solana Staking ETF in Canada. 3iQ, managing $1 billion in assets, seeks approval from the Ontario Securities Commission to list Solana and XRP ETFs. Sol Strategies held 189,968 SOL as of January 31, 2025, acquired at an average of $179 per SOL.
Klarna CEO Embraces Crypto, Plans Integration Ahead of US IPO
Klarna, the Swedish fintech giant, is planning to "embrace crypto," as announced by CEO Sebastian Siemiatkowski, who is seeking ideas for integrating digital assets ahead of a potential US initial public offering this year. Klarna, which has 85 million users and processes around $100 billion in annual trading volume, faces competition from established players like PayPal and Revolut, who already provide extensive cryptocurrency services. PayPal has launched its stablecoin, PayPal USD, which has a market cap of $583 million since August 2023, while Revolut offers trading for 175 crypto tokens.
Siemiatkowski's shift towards crypto is notable given his previous criticisms of it, describing Bitcoin as a “decentralized Ponzi scheme” in late 2022. On February 10, 2025, he even shared an AI-generated song about crypto, further indicating his newfound enthusiasm for the sector. Klarna was founded in 2005 and aims to innovate in the growing digital asset space.
Galoy Launches Lana: Bitcoin-Backed Loan Software Targeting Community Banks
Galoy, founded in September 2019 by Nicolas Burtey, has launched Lana, a software enabling banks to accept bitcoin as collateral for loans. Targeting community and challenger banks, Lana aims to reduce current high interest rates (12-15%) on bitcoin-backed loans by increasing competition in the market. The software allows banks to customize loan terms, including interest rates and collateral management, without Galoy handling custody, which remains the bank’s responsibility.
Currently employing 11 people and based in the U.S., Galoy plans to introduce open-source banking solutions, with Lana operating under a fair-source license that may transition to open-source in two years. Burtey envisions disrupting the core ledger market monopolized by a few large companies by offering open-source core banking software, ultimately making it easier to establish Bitcoin banks and transforming the traditional banking landscape.
Avalon Labs Considers Launch of Bitcoin-Backed Public Debt Fund Under SEC Regulation
Avalon Labs is considering the launch of a pioneering bitcoin-backed public debt fund, adhering to the SEC's Regulation A, which facilitates capital raising from accredited and retail investors without extensive registration processes. This initiative aims to integrate bitcoin into traditional finance while ensuring regulatory compliance, potentially offering retail investors secure access to bitcoin-backed financial products, similar to structures seen in real estate investment trusts (REITs).
Avalon Labs views bitcoin as a transformative financial instrument that can unlock decentralized finance (DeFi) yielding opportunities for a wider audience. By connecting bitcoin lending with regulated investment frameworks, the company hopes to reduce barriers for traditional investors and promote the adoption of bitcoin-based products. If successful, this fund could set a significant precedent for the cryptocurrency sector and pave the way for mainstream investment opportunities in bitcoin, enhancing its role in the financial landscape.
Taurus Launches Solana-Based Custody and Tokenization Platform for Banks
Taurus, a digital asset infrastructure firm backed by Deutsche Bank, has launched Taurus-Capital, a custody and tokenization platform on the Solana blockchain, aimed at serving global financial institutions. This initiative addresses the rising institutional demand for real-world asset (RWA) tokenization, allowing banks to manage and stake Solana-native tokenized assets while issuing programmable digital assets. Taurus highlights Solana’s high throughput and low latency as key benefits for enhancing efficiency in financial workflows. The platform enables the tokenization of various assets, including equity and stablecoins, while minimizing costs and operational complexities.
Taurus raised $65 million in a Series B round in February 2023, emphasizing a projected $10 trillion market potential for digitized private assets. The Swiss DLT Act of 2021 has facilitated regulated tokenization services for banks, making the integration of traditional finance and digital assets a realistic development, especially for institutions in the Middle East expanding their digital capabilities.
This article has been refined and enhanced by ChatGPT.
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