It was a whirlwind week in the world of cryptocurrency, with Ripple making significant waves and stablecoins experiencing a surge in growth. As the new Trump Administration set forth a pro-crypto agenda, the industry was abuzz with developments paving the way for expansion in the upcoming cycle.
Ripple took center stage, with Ondo Finance announcing plans to offer tokenized treasuries on Ripple’s XRP Ledger. This move was a significant step forward for the San Francisco-based company, which also revealed that XRP Ledger would be introducing clawback features to enhance liquidity for Ripple’s dollar-pegged stablecoin RLUSD.
CEO Brad Garlinghouse was vocal in his efforts to push for XRP’s inclusion in any national crypto reserve, sparking debate among Bitcoin enthusiasts who argue that the reserve should be exclusively bitcoin-based. Omkar Godbole provided insightful coverage of these developments, along with a series of detailed market analyses in his Daybook daily update.
In the realm of protocols, Cardano implemented a hard fork known as “Plomin,” which facilitated decentralized governance. Avalanche celebrated a 75% reduction in transaction costs for users following its December upgrade, marking a significant achievement for the project. Movement Labs also made strides by unveiling a developer mainnet ahead of the highly anticipated L1 launch scheduled for February.
Stablecoins emerged as the most traded form of cryptocurrency, surpassing a $200 million market cap. Tether, the issuer of the leading stablecoin USDT, announced a substantial profit of $13 billion for 2024, setting the stage for further investments. Howard Lutnick, the nominee for Commerce Secretary in the administration, defended Cantor Fitzgerald’s custodial relationship with Tether during a Senate hearing.
MicroStrategy, known for pioneering the concept of corporate bitcoin treasuries, continued to bolster its holdings and outlined plans for additional capital raising initiatives. Bitwise secured SEC approval for a combined bitcoin-ether ETF and filed an application for a dogecoin ETF, showcasing their commitment to expanding investment opportunities. Grayscale introduced a new closed-end fund trust offering exposure to dogecoin, underscoring the memecoin’s evolution from a novelty in 2013 to a global financial inclusion tool.
On the regulatory front, Solana’s memecoin platform Pump.fun faced a class-action lawsuit alleging securities violations, while French authorities expanded a money laundering and tax probe against Binance. Robinhood CEO Vlad Tenev echoed BlackRock’s Larry Fink in advocating for tokenized equity, signaling a growing trend in the industry. Jesse Hamilton shed light on the continued success of Fairshake, an industry SuperPAC dedicated to regulatory matters.
In a surprising turn of events, the parents of FTX founder Sam Bankman-Fried explored the possibility of seeking a presidential pardon for their son, drawing inspiration from former President Trump’s pardon of Silk Road founder Ross Ulbricht. However, as Shaurya Malwa pointed out, the circumstances surrounding these cases are vastly different, and Joseph Bankman and Barbara Fried may face significant obstacles in their pursuit.
As the diverse landscape of cryptocurrency continues to evolve, CoinDesk readers can expect more exciting updates and developments in the coming weeks. So, as they say, stay tuned for the latest in this ever-changing industry.
