Lightning Labs has unveiled a new protocol designed to widen the range of assets supported by the Lightning Network, the layer-2 scaling solution used for Bitcoin. Named Taro, the protocol is aiming to “bitcoinize the dollar” by pairing the network’s speed with Bitcoin’s security.

Popular cryptocurrency exchange Kraken is set to launch structured products focused on staking in a bid to enhance its existing offerings for institutional clients. The products combine staking and derivatives products so investors can earn yield while hedging

Nasdaq-listed business intelligence firm MicroStrategy has announced via a filing with the U.S. Securities and Exchange Commission (SEC) that its MacroStrategy subsidiary has added 4,197 BTC to its balance sheet.

Sponsored: The Invictus suite of funds offered commendable performance in a quarter marked by heightened volatility in the Bitcoin and broader cryptoasset market. All five of the Invictus funds registered positive returns for the quarter, with the vast majority outperforming their benchmarks. 

Top stories in the Crypto Roundup today:

• Lightning Labs Unveils Protocol to Bring Stablecoins to Bitcoin
• Kraken to Launch Structured Staking Products
• MicroStrategy Subsidiary Buys Additional 4,197 BTC
• Sponsored: Invictus Capital continues to deliver an uninterrupted path of growth across all its funds

Lightning Labs Unveils Protocol to Bring Stablecoins to Bitcoin

Lightning Labs has unveiled a new protocol designed to widen the range of assets supported by the Lightning Network, the layer-2 scaling solution used for Bitcoin. Named Taro, the protocol is aiming to “bitcoinize the dollar” by pairing the network’s speed with Bitcoin’s security.

The Taro protocol is set to enable the use of stablecoins and other assets on the Lightning Network and was made possible by the Taproot upgrade implemented to Bitcoin in November.

Lightning Labs has described Taro as an asset overlay network on Bitcoin. Its security is based on embedded consensus, meaning transactions on Taro include Bitcoin data that needs to be verified on the Bitcoin blockchain.

The protocol includes additional rules to govern that data as defined by it, although the Bitcoin blockchain does not care about these rules. The technical specifications for Taro were released as a Bitcoin Improvement Proposal (BIP) for Lightning Labs to get feedback from the broader developer community, and the protocol is open-source.

In tandem with the launch of the protocol, Lightning Labs said it raised $70 million in a Series B funding round led by Valor Equity Partners and in which NYDIG, Robinhood CEO Vlad Tenev, Silvergate CEO Alan Lane, and Baillie Gifford participated.

Kraken to Launch Structured Staking Products

Popular cryptocurrency exchange Kraken is set to launch structured products focused on staking in a bid to enhance its existing offerings for institutional clients. The products combine staking and derivatives products so investors can earn yield while hedging

Speaking to The Block, Tim Ogilvie, head of Staked at Kraken, said that internally the products are being referred to as cash, carry and stake, a strategy sophisticated investors are doing. The strategy sees investors stake an asset and sell a futures contract of that same asset, letting investors capture the rewards while mitigating exposure to the underlying cryptocurrency.

The strategy not only captures the staking rewards from an asset – which can range from 4-7% - but can also earn extra yield for investors shorting assets thanks to funding rates.

The structured products would be offered via Kraken to institutional clients who go through know-your-customer and anti-money laundering checks.

The exchange is also reportedly working on liquid staking offerings, where staking services free up the liquidity of tokens being staked.

MicroStrategy Subsidiary Buys Additional 4,197 BTC

Nasdaq-listed business intelligence firm MicroStrategy has announced via a filing with the U.S. Securities and Exchange Commission (SEC) that its MacroStrategy subsidiary has added 4,197 BTC to its balance sheet.

The BTC was bought at a weighted average price of $45,714 per coin. As a result, MicroStrategy and its subsidiaries now hold a total of 129,218 Bitcoin with a total aggregate purchase price of $3.97 billion. The average price paid per coin was $30,700.

The new addition comes shortly after MacroStrategy closed a $205 million BTC-collateralized loan from crypto-fiat gateway bank Silvergate. The firm pledged to use the funds to purchase more Bitcoin.

MicroStrategy has been accumulating Bitcoin since August 2020.

Invictus Capital continues to deliver an uninterrupted path of growth across all its funds

The Invictus suite of funds offered commendable performance in a quarter marked by heightened volatility in the Bitcoin and broader cryptoasset market. All five of the Invictus funds registered positive returns for the quarter, with the vast majority outperforming their benchmarks. The simple average return across our suite of funds was 10.7% for the quarter, which is equivalent to an annualized return of 50%.

• The Crypto10 Hedged (C10) fund offered the greatest returns over the quarter at 23.91%, far outstripping its benchmark of 1.66% and Bitcoin at 12.36%. 

• Crypto20, the flagship fund, had a stellar year registering a return of 334.98%, it significantly outperformed its Top 20 equally weighted benchmark, which rose 261.92%.

• The Invictus Bitcoin Alpha (IBA) fund  managed to outperform Bitcoin throughout the fourth quarter, marking a total return of 14.56%, accompanied by significantly less volatility.

• The Hyperion venture capital fund continued on its impressive run, appreciating a further 5.05% off the back of a Quantfury dividend and Syntropy revaluation. The large dividend received by Quantfury will allow for a healthy level of buy-and-burn activity on the IHF token over the coming months.

• Invictus Margin Lending (IML) Fund registered a 2.48% net return for the quarter against its 1.48% benchmark hurdle.

Invictus Capital is now on the cusp of a historic migration into a fully-regulated fund structure that will place us at the forefront of innovation within the asset management space. It should also bring our investors the peace of mind that comes with additional, 3rd-party oversight of our operations.

Disclaimer:

Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite.

Its content does not constitute financial advice. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice.

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