Spiko brings attention to the roughly $25 trillion in European bank deposits that currently sit idle, missing out on potential yields and capital efficiency. Unlike in Europe, U.S. businesses commonly earn interest on their cash without sacrificing liquidity. Growing demand for better cash optimization is now pushing European firms to diversify deposits, according to the AMF-regulated fintech firm.

Spiko aims to bridge this cash yield gap between Europe and the U.S. by offering businesses daily interest without lock-ups through what it refers to as Europe’s premier tokenized money market funds. “In Europe, there’s a common misconception that your money won’t earn interest unless you lock it away or assume risk,” Spiko co-founder Paul-Adrien Hyppolite explained. “But as long as central bank rates are above zero, sitting on idle cash implies that European businesses are missing out on returns that U.S. counterparts routinely receive. With Spiko, we’re revolutionizing the system by making it simple for anyone to put their cash to work.”

Spiko was established by Hyppolite and Antoine Michon, both ex-French Treasury and government officials with experience at Palantir. The fintech startup, which began operations a year ago, claims to have processed over $900 million of working capital from more than 1,000 businesses. It has ambitious plans to increase distribution through strategic partnerships with companies like Memo Bank and Fygr, and aims to manage $1 billion in assets by 2025.

Spiko intends to use the newly acquired capital to boost growth in Europe through investment in sales, marketing, product development, and partnership acquisitions, while also preparing for potential U.S. expansion.

Spiko operates by utilizing blockchains, including Ethereum, Arbitrum, and Polygon, to tokenize money market funds and make them more accessible to smaller businesses often overlooked by traditional banks. Acting as a transfer agent on a blockchain ledger, Spiko eliminates legacy custodians and intermediaries, reducing costs and enabling 24/7 cash-equivalent transfers worldwide.

Its funds invest in highly liquid, low-risk assets, such as Eurozone and U.S. Treasury bills, backed by sovereign guarantees and linked to central bank rates. Spiko’s architecture also supports stablecoin transfers as an alternative to wire payments, allowing customers to move funds seamlessly between digital currencies and fiat.

Disclaimer: The Block is an independent news outlet that provides crypto news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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On June 30, Robinhood’s CEO Vlad Tenev, at an extravagant promotional event in Cannes, introduced the company’s tokenized stocks product. This included presenting EU customers with more than 200 U.S. public equities and interests in private firms such as OpenAI and SpaceX as tokens on Arbitrum. Alongside this, Robinhood launched a range of other crypto products like perpetual trading, staking, and its own Ethereum Layer 2 network.

Tenev described the OpenAI and SpaceX tokens as a “seed for something much bigger”, with the goal to bring more private companies into the tokenization movement. However, OpenAI rejected the action, stating it did not approve any token representing its stock. OpenAI, directed by Sam Altman, advised investors to examine official filings before purchasing these instruments.

Private equity tokenization often lacks essential rights like company consent and right of first refusal, as Robinhood observed. Despite the existing private market liquidity for firms like OpenAI and SpaceX, Bernstein analysts note a high demand for tokenizing less liquid private assets.

“We believe Robinhood garnered sufficient attention and marketing for the concept of tokenization, which was the primary purpose behind the product launch,” said Chhugani. “It will continue to refine the product as it strives to construct a marketplace for listed and unlisted equities – globally and in the U.S. when the regulatory framework is prepared.”

Robinhood is now among companies such as Bybit, Kraken, and Gate in offering tokenized shares to non-U.S. investors.

The analysts believe that supportive signals from SEC and regulatory clarity on equity tokenization will expand access for investors. They predict a more relaxed regulatory approach for private companies to bring liquidity to their equity through blockchain-based tokens. As the GENIUS Act related to stablecoins progresses, focus will shift to the CLARITY Act, which defines token securities vs. token commodities and lets platforms like Robinhood and Coinbase to trade both under CFTC and SEC supervision.

These developments suggest that equity tokenization is set to progress, irrespective of the current market structure and regulations.

Robinhood earlier this year made a case to the SEC that tokenizing real-world assets can enhance settlement, transparency, and cost-effectiveness. Robinhood called for clear, unified rules that treat tokenized and traditional assets equally. It also recommended that broker-dealers should be permitted to custody both, acknowledging tokens as “allowable assets”.

Gautam Chhugani, analyst at Bernstein, retains long positions in various cryptocurrencies. Certain affiliates of Bernstein act as market makers or liquidity providers in the equity securities of Robinhood and Coinbase.

Disclaimer: This article provides information for informational purposes only. It does not constitute legal, tax, investment, financial, or other advice.

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With its ability to process hundreds of thousands of transactions, Timeboost has particularly found favour in high-frequency DeFi trading, accounting for 20-30% of daily DEX volume on Arbitrum. Traditionally, Arbitrum chains process transactions on a First-Come, First-Served (FCFS) basis. However, this has proven to have limitations, especially as MEV hunters frequently overwhelm the network with transactions to ensure their inclusion, leading to network congestion and inefficiencies.

To address this issue, Offchain Labs launched Timeboost, a system that allows MEV hunters to bid for transaction priority. Timeboost alters the FCFS principle by implementing a sealed-bid, second-price auction to govern its “express lane”. This not only enables chain owners to capture MEV revenue and mitigate network spam but also ensures faster block times while shielding users from front-running and sandwich attacks.

While Timeboost helps to control spam and congestion, it also serves to generate value for the Arbitrum ecosystem. Nevertheless, there are concerns about possible centralization risks, as the monetization of sequencer revenue may discourage the decentralization of the sequencer.

As an Ethereum Layer-2 scaling solution, Arbitrum generates income through several mechanisms, Timeboost being one of them. It imposes Layer 1 transaction fees on users to cover the cost of relaying transaction data to the Ethereum mainnet for security and finality. Additionally, there are Layer 2 fees that cover the operational costs of running the Arbitrum network, which includes computation and storage on the Layer 2 chain. All surplus L1 fees and L2 fees, after covering Ethereum costs, are directed to the Arbitrum DAO treasury. Presently, the Arbitrum DAO treasury possesses approximately 3.5 billion ARB tokens, valued at approximately $1.3 billion.

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The newly launched layer-2 network will support the issuance of over 200 US stock and exchange-traded fund (ETF) tokens. This development aims to provide European investors with access to US assets. Robinhood made this announcement on Monday.

The brokerage firm’s stock tokens will be commission-free and will be accessible for trading round the clock, five days a week. Furthermore, Robinhood announced the initiation of perpetual futures in the EU, offering eligible traders the opportunity to access derivatives with up to three times leverage. These trades will be processed via Bitstamp, the cryptocurrency exchange recently bought by Robinhood for $200 million.

Other exchanges, such as Gemini, have previously extended tokenized shares to European investors. However, Robinhood continues to intensify its crypto push. Recently, it unveiled micro futures contracts for Bitcoin (BTC), XRP (XRP), and Solana (SOL), thus facilitating traders to access derivatives markets with significantly reduced capital requirements.

In addition to these developments, Robinhood has acquired Canadian crypto operator WonderFi for $179 million and is actively advocating for rational tokenization legislation in the United States. It has proposed a national framework for RWAs to the Securities and Exchange Commission, including plans to launch the Real World Asset Exchange, a platform designed for offchain trading with onchain settlement.

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The crypto market in 2024 is buzzing with potential, and these altcoins are at the forefront. Each one offers unique features and promising growth opportunities. Here’s a look at the top 10 must-have altcoins for 2024, poised to make significant impacts in the crypto space.

Solana (SOL)

Solana is making waves with innovations like Solang for smart contract development, driving its value higher. To maintain momentum, Solana needs to continue attracting cutting-edge projects and users, navigating market volatility and competition.

Aptos (APT)

Aptos has seen a surge in transaction volume and network activity, especially after deploying over 1,000 inscriptions. With a strong community and growing Total Value Locked (TVL), Aptos is on a bullish trend. Its price fluctuates between $7.81 and $10.47, with significant support and resistance levels.

Near Protocol (NEAR)

Near Protocol has hit a 440-day high, attracting investor interest. Its price ranges between $2.54 and $4.57, indicating a bullish trend. Continued investor engagement and project influx are crucial for maintaining this upward momentum.

Polygon (MATIC)

Polygon recently broke the $1 mark, signaling strong bullish sentiment. Its price sits between $0.97 and $1.052, with established support and resistance levels. Sustaining this growth requires continuous adoption and market activity.

Polkadot (DOT)

Polkadot’s value surged by 36% in a week, driven by ongoing development activities and partnerships. Its price ranges between $6.92 and $9.75. To overcome resistance levels, Polkadot needs innovation and increased user engagement.

Cardano (ADA)

Cardano remains active with a passionate development team. However, it faces challenges with decreased network activity. Fresh strategies are needed to keep Cardano on an upward trajectory.

Optimism (OP)

Optimism is at a critical juncture with an upcoming significant token release. Market trends suggest a potential price dip post-release, highlighting the need for strategic navigation.

Render (RNDR)

Render experienced a 1,100% growth in 2023, reaching new yearly highs. Despite bullish momentum, it faces resistance around the $5.5 mark, potentially leading to a price correction.

Arbitrum (ARB)

Arbitrum hit a milestone with over 1 million liquidity provider positions on Uniswap v3, sparking a 16% price surge. Its expanding influence attracts more liquidity providers, boosting its market presence.

Sui (SUI)

Sui is gaining traction in the DeFi sector with increased TVL and new integrations like Solend. These developments aim to attract a wider audience and strengthen Sui’s market position.

Conclusion

The “Santa Claus Rally” has boosted altcoin values, with diverse cryptos like Solana, Aptos, Near Protocol, Polygon, and Polkadot leading the charge. Each offers unique growth potential and community support, reflecting the dynamic and evolving crypto market. Keep an eye on these altcoins for promising developments in 2024.

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Comparative Growth Across Networks
While Ethereum and Solana have also seen impressive gains in NFT sales, Arbitrum’s remarkable growth rate underscores the dynamic nature of the NFT ecosystem. Ethereum’s NFT sales grew by 126%, involving over 9,359 buyers, whereas Solana experienced a 276% surge, drawing in 20,591 buyers. These figures highlight the vibrant activity and investor enthusiasm across different blockchains, with Arbitrum emerging as a standout for its rapid ascent in the NFT domain.

The Impact of Counterfeit Sales
The issue of counterfeit NFT sales presents challenges across all platforms, with Ethereum and Solana experiencing fluctuations in counterfeit transaction volumes. Despite these concerns, the overall growth in genuine NFT sales points to a healthy and robust market. Arbitrum’s performance, in particular, illustrates the network’s resilience and appeal among NFT enthusiasts, promising a future where innovation and authenticity drive market expansion.

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The Concept of ApeChain ApeChain aims to leverage the scalability and efficiency of Arbitrum’s technology to create a blockchain platform with enhanced capabilities. This initiative is expected to open new possibilities for decentralized applications (dApps) and smart contract development, offering a robust and scalable solution for developers and users.

Potential Impact on the Blockchain Ecosystem The proposal of ApeChain by these prominent blockchain organizations could have a substantial impact on the blockchain ecosystem. It highlights the importance of collaboration and innovation in advancing blockchain technology and its applications.

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The Jimbos Protocol, a decentralized finance (DeFi) platform built on the Arbitrum network, has fallen prey to a security exploit. The platform has reportedly lost an estimated $7.3 million as a result of the incident. This unfortunate event occurred on May 28, 2023, and has led to a loss of approximately 4000 ETH, which equates to the aforementioned sum. This information comes courtesy of a report by PeckShield, a blockchain security and data analytics company.

An investigation into the breach reveals that the hacker took advantage of a lack of slippage control in the protocol’s primary contract. This loophole allowed the perpetrator to execute a flash loan, manipulate the value of the platform’s native token, and subsequently pilfer the treasury funds. Post-incident, the value of the native JIMBO token has plummeted by 40%.

The Flash Loan Vulnerability

Flash loans have emerged as a common means for hackers to exploit DeFi platforms. In these scenarios, traders borrow unsecured funds from lenders without needing to provide any collateral. The catch is that the transaction is considered complete only when the borrower repays the lender. If a borrower defaults, the transaction gets canceled and the funds are returned to the lender. This system, while seemingly secure, has proven to be a lucrative loophole for savvy hackers.

Jimbos Protocol’s Road to Recovery

In the wake of this incident, the Jimbos Protocol is exploring the best course of action for recovery. They have engaged with security researchers who previously assisted Euler Finance in recovering $200 million post their exploit. The team has also stated their intention to contact law enforcement if the stolen funds are not returned by the perpetrator.

The DeFi Security Challenge

This incident serves as a stark reminder of the persistent security issues plaguing the DeFi ecosystem. Despite concerted efforts to bolster security, the sector continues to grapple with unauthorized access and security vulnerabilities. Earlier victims of similar exploits include the 0VIX protocol and the privacy-focused protocol Tornado Cash, each suffering considerable losses due to flash loan attacks.

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Are you ready to get your hands on some free ARB tokens? The Arbitrum Airdrop is here, and it’s raining ARB tokens! If you haven’t heard of Arbitrum yet, it’s a layer-2 solution that allows for faster and cheaper transactions on the Ethereum blockchain. And now, they’re giving away free ARB tokens to users who participate in the airdrop. So, get ready to claim your share of the ARB tokens!

It’s Raining ARB Tokens: Get Ready to Claim Your Share!

To claim your free ARB tokens, you’ll need to follow a few simple steps. First, you’ll need to have an Ethereum wallet that supports ERC-20 tokens. If you don’t have one already, you can create one for free on sites like MyEtherWallet or MetaMask. Once you have your wallet set up, you’ll need to visit the Arbitrum Airdrop page and connect your wallet.

After connecting your wallet, you’ll need to complete a few tasks to earn your ARB tokens. These tasks might include following Arbitrum on social media, joining their Telegram group, or referring friends to the airdrop. The more tasks you complete, the more ARB tokens you’ll earn. So, get ready to roll up your sleeves and start earning some free tokens!

Join the Arbitrum Airdrop Party: Don’t Miss Out on Free ARB!

The Arbitrum Airdrop is a great opportunity to get your hands on some free ARB tokens. Not only will you be able to earn tokens by completing simple tasks, but you’ll also have the chance to learn more about Arbitrum and their layer-2 solution. And who knows, you might even become a fan of their technology and start using it for your own transactions!

So, don’t miss out on this opportunity to claim your share of the ARB tokens. Head over to the Arbitrum Airdrop page, and start completing tasks to earn your free tokens. Remember, the more tasks you complete, the more tokens you’ll earn. Let’s join the Arbitrum Airdrop party and get ready to claim our share of the ARB tokens!

With the Arbitrum Airdrop, getting your hands on some free ARB tokens has never been easier. By completing a few simple tasks, you’ll be able to earn tokens and learn more about the exciting world of layer-2 solutions. So, don’t miss out on this opportunity to claim your share of the ARB tokens. Head over to the Arbitrum Airdrop page, and let the fun begin!

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