Mastercard opens network to USDC, OKX leaves Canada, Bitcoin climbs

by · March 28, 2023

Banking turmoil and regulatory breaches happening around the world have not slowed down the ongoing mix of traditional and decentralized finance (DeFi). The ramps connecting the two sides seem even stronger despite the wild winds of change.

Take, for example, the recent problems that Circle-issued USD Coin (USDC) faced when it was delinked from the US dollar following the collapse of Silicon Valley Bank. Two weeks later, Mastercard boldly integrated the stablecoin into its infrastructure in the Asia-Pacific region, allowing users to use USDC through its network. It’s happening, folks!

And let’s not forget Bitcoin (BTC) – that digital gold is still on the rise and decoupled from Wall Street, which again proves the value proposition and triggers calls for a hedge against equity markets in the long run.

This week’s Crypto Biz documents the latest developments in worldwide crypto adoption, and how banking system fears are affecting the crypto space.

Mastercard to settle stablecoin wallet transactions in APAC

Global payments provider Mastercard has made another move into the crypto space to allow retail customers in the Asia-Pacific region to use stablecoins anywhere Mastercard is accepted. This move was made possible by a partnership with Stables, an Australian stablecoin platform. Users can spend and save USDC by converting it to fiat and settling on the Mastercard network. The wallet will accept deposits in several stablecoins, including Tether (USDT) and Binance USD (BUSD), with all deposits automatically converted to USDC.

MetaMask enables direct crypto purchases in Nigeria

On-ramps for digital assets are also increasing in Nigeria, as crypto wallet MetaMask expanded direct transactions with local banks. MetaMask’s parent company ConsenSys has partnered with crypto fintech MoonPay, which enables users in the country to buy crypto via instant bank transfers without requiring a credit or debit card. The integration is estimated to reduce the decline of direct crypto purchases in Nigeria from 90% to 30%. Nigeria is a major market for MetaMask, ranking third in active monthly mobile users. Chainalysis ranks Nigeria as one of the top 20 countries in cryptocurrency adoption.

OKX will cease operations in Canada by June 22, 2023

In a “temporary” farewell, crypto exchange OKX emailed Canadian users that the firm “will no longer offer services or allow users to open new accounts in Canada as of March 24, 2023.” OKX cited “new regulations” behind the move, saying it’s only temporary while it works with regulators. By 22 June, OKX’s customers in the country must close open options, margins, perpetuals and futures positions. Fiat or tokens must also be withdrawn by that date. In February, The Canadian Securities Administrators published a notice requiring crypto exchanges to sign new, legally binding commitments pending registration with regulators.

Off-boarding notice sent to Canadian OKX users on March 20, 2023. Source: OKX

Bitcoin’s banking crisis wave will ‘attract more institutions’: ARK’s Cathie Wood

With fears of a global banking crisis rising, Bitcoin’s value proposition is on full display as its price continues to rise following the collapses of Silvergate, Silicon Valley Bank and Signature Bank. ARK Invest CEO Cathie Wood believes that the current disconnection of BTC’s price from the stock markets could attract more institutional investors to Bitcoin over time. As for the impact on Bitcoin’s price from institutional interests, Wood expects most firms to allocate between 2.5% to 6.5% of their investment portfolios to BTC by 2030, taking the leading cryptocurrency’s price to 1-1.5 million dollars.

The impact of the Credit Suisse banking crisis on the crypto market

How to analyze banks and avoid inaccurate market value indicators – for example, the $15.8 billion value of Silicon Valley Bank? Cryptoanalyst Marcel Pechman delves into enterprise value and how it provides a better picture of a bank’s balance sheet condition by subtracting net debt from market value. Of course, Pechman first explains the relationship between bank valuation and cryptocurrencies, specifically Bitcoin’s ethos.

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