On Thursday, Tether announced a net profit of $2.5 billion for Q3, contributing to a year-to-date total of $7.7 billion. This quarter’s gains stemmed largely from U.S. Treasuries and gold, with $1.3 billion in income generated from Treasury holdings and another $1.1 billion from gold, which rose approximately 15% over the period.    

Franklin Templeton has launched its tokenized money fund, the Franklin OnChain U.S. Government Money Fund (FOBXX), on Coinbase’s Base network, according to an October 31 announcement. The firm claims this makes it "the first asset manager to build a tokenized fund on Base."

On October 30, Canary Capital Group, a recently established digital asset investment firm led by former Valkyrie Funds co-founder Steven McClurg, filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), which is a critical step under the Securities Act of 1933 for companies seeking to offer securities to the public. 

Top stories in the Crypto Roundup today:

• Tether Reports $2.5B Profit for Q3 Thanks to Its Treasuries and Gold Holdings
• Franklin Templeton Becomes ‘First Asset Manager To Build a Tokenized Fund on Base’ 
• Canary Capital Takes First Step Toward US-Listed Spot Solana ETF With S-1 Filing

Tether Reports $2.5B Profit for Q3 Thanks to Its Treasuries and Gold Holdings

On Thursday, Tether announced a net profit of $2.5 billion for Q3, contributing to a year-to-date total of $7.7 billion. This quarter’s gains stemmed largely from U.S. Treasuries and gold, with $1.3 billion in income generated from Treasury holdings and another $1.1 billion from gold, which rose approximately 15% over the period.    

According to an attestation by BDO Italy, Tether reported $125.5 billion in reserves as of 30 September 2024, supporting $119.4 billion in liabilities and leaving over $6 billion in excess reserves. Treasury assets represent a substantial portion of these reserves, with $102.5 billion in direct and indirect U.S. Treasury exposure, placing Tether as the 18th largest global holder of U.S. government debt, surpassing Germany, Australia, and the UAE. 

Tether’s reserves include $5 billion in gold and $4.8 billion in Bitcoin (BTC), along with other cash and cash-equivalent assets.

Across its entire corporate structure, Tether’s consolidated assets totalled $134.4 billion, bolstered by Tether Investments’ growing role. The firm’s venture arm, which focuses on energy, mining, and AI, saw its net equity rise to $7.7 billion, up from $6.2 billion in the previous quarter. It now includes 7,100 BTC valued at nearly $500 million.

The Tether CEO says that USDT's market capitalization has surged 30% this year (or nearly by the entire market cap of Tether’s closest competitor, which is Circle's USDC). Over 330 million unique wallets have transacted in USDT to date, and the pace of new on-chain wallet creation has increased, with 35 million new addresses created quarterly.

Franklin Templeton Becomes ‘First Asset Manager To Build a Tokenized Fund on Base’

Franklin Templeton has launched its tokenized money fund, the Franklin OnChain U.S. Government Money Fund (FOBXX), on Coinbase’s Base network, according to an October 31 announcement. This marks the first tokenized fund to operate on Base, joining a lineup that includes Stellar, Polygon, and Arbitrum.

FOBXX leverages blockchain technology for key reporting, notably using public ledgers for transaction record-keeping—a rare approach among tokenized fund managers, as emphasized by Roger Bayston, Franklin Templeton’s head of digital assets. Bayston noted that FOBXX is currently the only fund of its kind able to rely on blockchain ledgers for formal record maintenance.

The launch on Base may signal regulatory approval of public ledgers for official record-keeping in the United States. Franklin Templeton reports that the fund holds around $435 million in assets, with annualized returns of about 4.7% as of October 2024, and is accessible through the Benji Investments platform.

Base, which launched in 2023, is Ethereum’s second most popular layer-2 scaling solution, with a total value locked (TVL) of approximately $8 billion, while Arbitrum leads the sector with more than $13 billion, per L2Beat.

The tokenized real-world assets (RWAs) market, covering assets from money funds to fine art, represents a $30 trillion opportunity globally, according to Polygon’s Colin Butler. With demand for tokenized Treasury bills and other liquid assets rising, FOBXX faces competition from BlackRock’s USD Institutional Digital Liquidity Fund, which manages roughly $530 million, based on RWA.xyz data.

Canary Capital Takes First Step Toward US-Listed Spot Solana ETF

On October 30, Canary Capital Group, a recently established digital asset investment firm led by former Valkyrie Funds co-founder Steven McClurg, filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), which is a critical step under the Securities Act of 1933 for companies seeking to offer securities to the public. This filing marked Canary’s first attempt at launching a spot Solana (SOL) ETF.

The Form S-1 contains comprehensive details about the company’s financials and the terms of the security offering. While this was an important milestone, the firm must also submit Form 19b-4—a filing that signals a proposed rule change to the exchange where the ETF would be listed, pushing the application into the next phase of regulatory review.

With this filing, Canary Capital positions itself alongside VanEck and 21Shares, which made similar filings on June 27 and June 28, respectively. Franklin Templeton has also reportedly considered joining the list of firms proposing a spot SOL ETF.

Solana has been discussed as the next major cryptocurrency likely to have a spot ETF greenlit by the SEC, following recent approvals for Bitcoin and Ethereum spot ETFs in January and July.

On October 8 and 15, respectively, the firm filed Form S-1 registration statements for its spot XRP ETF and spot LTC ETF. At the time of writing (5:50 a.m. UTC on November 1), $SOL is trading at around $165.76, down 5.3% in the past 24-hour period but up 58.89% year-to-date.

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