Top 3 Crypto Stories Today To Watch

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Top 3 Crypto Stories Today To Watch

It’s been an intense week worldwide and in the crypto space. The crypto world is buzzing with significant developments. JPMorgan’s launch of its Tokenized Collateral Network, a platform that allows investors to use assets as collateral in a digital form. But why is a Brazilian congress contesting for Cheng Zhao’s Binance Founder indictment? Let’s find out.

  • JPMorgan launches a tokenization platform with BlackRock among its major clients.
  • Bitmain pauses employee salaries amid financial setbacks.
  • Brazil’s Congress wants Binance’s CZ indicted.

JPMorgan Launches Tokenization Platform With Pro- Crypto BlackRock As Main Client

JP Morgan, one of the most extensive banking names globally, just launched its in-house tokenization platform, the Tokenized Collateral Network (TCN). The Tokenized Collateral Network is a tool that helps investors use assets as collateral, as seen from Bloomberg. 

Of course, Blockchain technology allows investors to transfer collateral ownership without moving assets in underlying ledgers. TCN settled its first trade for Pro-crypto asset management giant BlackRock. In this case, shares of a money market fund were converted into digital tokens. Once tokenized, these shares were transferred to Barclays Bank. 

This transfer served as collateral, or security, for an over-the-counter derivatives exchange between JPMorgan and BlackRock. In other words, the tokenized shares were used as a form of insurance in case one party failed to meet their obligations in the derivatives exchange.

Bitmain Reportedly Cease Employee Salaries and Bonuses

According to Chinese Media, Bitmain, a major bitcoin miner producer, is delaying salaries and incentives of its workers. Employees have confirmed that Bitmain’s cash flow in September wasn’t positive. As per reports, the company moved some employee salaries from September to October, depending on the situation’s improvement.

Although Odaily Planet Daily insiders reported that Bitmain paid some pending September salaries on October 8, some workers have yet to receive last month’s wages and previous year’s end bonuses.

Brazil’s Congress Recommends Crypto Exchange, Binance’s CZ Indictment

A congressional committee from Brazil has accused Zhao and three other Binance crypto exchange executives of fraudulent practices In a just released 500+ page report. Notably, The executives include Guilherme Haddad Nazar, Daniel Mangabeira, and Thiago Carvalho.

The Brazil committee has accused CZ and the remaining executives of operating without enough authorization and illicit offering of securities trading. Furthermore, the report says CZ and the executives create a “vague legal entities network.”

Although the committee suggested that the SEC (Securities and Exchange Commission) and Federal Public Ministry investigate Binance for tax evasion, alleged money laundering, and terrorism, it’s up to the regulatory bodies and police to take further action.

Conclusion

To conclude, JP Morgan’s latest move, which saw BlackRock as one of its first clients, highlights tokenization potential in simplifying and securing financial transactions. Meanwhile, Bitmain, a leading bitcoin miner producer, is reportedly facing economic challenges, delaying employee salaries and bonuses. This situation highlights the volatility and risks inherent in the crypto industry. 

Lastly, Binance’s founder, Cheng Zhao, and other executives are facing accusations of illicit practices from a Brazilian congressional committee. While these allegations are yet to result in concrete action, they remind crypto companies of the regulatory scrutiny and legal challenges they face.

Disclaimer: Cryptocurrency investments are subject to market risks and should be made with caution. This information is not financial advice.

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