Crypto startups experienced a mixed quarter in Q2 2024, as venture capital (VC) investment in the sector reached $2.7 billion, a 2.5% increase from the first quarter. However, the number of deals closed declined by 12.5%, signaling a more selective investment approach in the digital-asset world.

Ripple Labs has announced the start of beta testing for its new stablecoin, Ripple USD (RLUSD), on both the XRP Ledger (XRPL) and the Ethereum mainnet.

On August 9, Thailand's Securities and Exchange Commission (SEC) officially launched the Digital Asset Regulatory Sandbox, a new initiative to test and develop cryptocurrency services within a controlled environment.

Top stories in the Crypto Roundup today:

• Crypto Startups See Increased Funding Despite Fewer Deals in Q2 2024
• Ripple Starts Beta Testing of Its New Stablecoin on XRP Ledger and Ethereum
• Thailand Unveils Regulatory Sandbox to Foster Development of Digital Asset Services
• CME Monthly Options Volume Claims New All-time High in July

Crypto Startups See Increased Funding Despite Fewer Deals in Q2 2024

Crypto startups experienced a mixed quarter in Q2 2024, as venture capital (VC) investment in the sector reached $2.7 billion, a 2.5% increase from the first quarter. However, the number of deals closed declined by 12.5%, signaling a more selective investment approach in the digital-asset world.

This trend is in line with the broader slowdown observed in the crypto market, despite the initial enthusiasm from the launch of US-based spot Bitcoin exchange-traded funds (ETFs) in January.

The crypto market's initial exuberance in the first quarter of 2024, driven by spot ETF approvals, waned significantly in the second quarter. Investor inflows into these ETFs plummeted to $2.8 billion, an 80% drop from the $13.7 billion recorded in the previous quarter, according to Bloomberg estimates.

Despite this, the total value of VC investments in crypto saw its third consecutive quarterly increase, highlighting a cautious yet ongoing interest in the sector.

In Q2, investments primarily targeted infrastructure projects like new blockchains, with consumer-focused applications receiving less attention. For instance, MegaETH, a blockchain startup, secured $20 million in seed funding in June.

Despite fewer deals, exit activities increased, with 26 exits recorded in Q2, the highest since early 2022. PitchBook anticipates further consolidation among crypto exchanges, custodians, and infrastructure providers as the market matures.

Ripple Starts Beta Testing of Its New Stablecoin on XRP Ledger and Ethereum

Ripple Labs has announced the start of beta testing for its new stablecoin, Ripple USD (RLUSD), on both the XRP Ledger (XRPL) and the Ethereum mainnet. This development marks a significant step in Ripple’s efforts to introduce more high-quality assets to the XRPL, aiming to enhance opportunities, liquidity, and institutional use cases for various users, developers, and applications.

Additionally, Ripple USD is now available on the Ethereum mainnet, with future plans to expand its presence across other blockchains and decentralized finance (DeFi) protocols.

Currently, Ripple USD is in its beta phase and is undergoing thorough testing by the company’s enterprise partners. Ripple emphasized the importance of this stage to ensure that the stablecoin meets the highest standards of security, efficiency, and reliability before its full launch, which is contingent upon obtaining regulatory approval. As such, Ripple USD is not yet available for purchase or trading.

Ripple also issued a warning to the public to be wary of potential crypto scams that might falsely claim to offer early access to Ripple USD. The company reiterated that the stablecoin is not available for trading or purchase at this time.

Ripple USD is designed to be a stablecoin pegged 1:1 to the US dollar. The stablecoin is fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents, providing a high level of trust and stability. These reserve assets will be audited by an independent third-party accounting firm, with Ripple committed to publishing monthly attestations to maintain transparency.

Ripple also mentioned in its blog post that it plans to integrate Ripple USD alongside XRP into its cross-border payments solution once the stablecoin becomes widely available.

Thailand Unveils Regulatory Sandbox to Foster Development of Digital Asset Services

On August 9, Thailand's Securities and Exchange Commission (SEC) officially launched the Digital Asset Regulatory Sandbox, a new initiative to test and develop cryptocurrency services within a controlled environment.

This sandbox provides a platform for companies to experiment with innovative digital asset solutions under a flexible regulatory framework, encouraging advancements in Thailand’s capital market.

The introduction of the sandbox follows the SEC's decision in March to establish such a framework. The initiative sets clear guidelines for eligible participants, including digital asset exchanges, brokers, dealers, fund managers, advisers, and custodial wallet providers.

These participants must integrate their innovations into Thailand's capital market or participate in the sandbox program of another regulatory body. To qualify, companies must demonstrate capital adequacy, robust management structures, and secure work systems, ensuring they are well-prepared to operate within the sandbox.

Participants are required to outline the scope of their services to minimize risks during the testing period, which is limited to one year, with the option to request an extension. This cautious approach reflects Thailand's broader regulatory stance, which, while supportive of cryptocurrency transactions, emphasizes investor protection and financial stability.

CME Monthly Options Volume Claims New All-time High in July

Last month, the total derivatives trading volume on the Chicago Mercantile Exchange (CME) rose 23.7% to $130 billion, its highest level since March. Bitcoin futures led the charge, climbing 24% to $101 billion, while Ethereum futures rose a more modest 15% to $20.7 billion.

The exchange also experienced significant growth in options trading as its options volume rose 93.6% to $3.69 billion, a new all-time high. Bitcoin options contributed significantly to this surge, increasing 89.8% to $2.72 billion, the highest monthly volume since March, while Ethereum options rose 122% to $897 billion, reflecting heightened institutional interest in the cryptocurrency ahead of the launch of spot Ethereum ETFs in July.

Dig deeper via CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

Build your project with CCDATA

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.