On Thursday, Commerzbank announced that it had teamed up with Crypto Finance, a subsidiary of Deutsche Börse, to offer secure trading and custody of crypto assets to its corporate clients.  

Matt Hougan, the Chief Investment Officer at Bitwise Investments, has published a memo in which he discusses the recent market performance and challenges of Ethereum.    

The Bank of Canada has paused its efforts to introduce a digital version of the Canadian dollar. After years of research, the central bank has decided to step back from the idea, focusing instead on broader developments in payment systems both within Canada and globally.

At the TOKEN2049 conference in Singapore, Emmett Hollyer, General Manager of Solana Mobile, introduced the company’s upcoming Web3 crypto phone, Seeker, set to launch next year. 

Top stories in the Crypto Roundup today:

• Commerzbank Partners with Crypto Finance to Offer Crypto Trading to Corporate Clients
• Bitwise CIO: Ethereum Faces Challenges but Remains a Dominant Force
• Canada’s Central Bank Shelves CBDC Plans, Shifts Focus to Payment Trends
• Solana Mobile Introduces Its Second Web3-Focused Crypto Phone

Commerzbank Partners with Crypto Finance to Offer Crypto Trading to Corporate Clients

On Thursday, Commerzbank announced that it had teamed up with Crypto Finance, a subsidiary of Deutsche Börse, to offer secure trading and custody of crypto assets to its corporate clients. 

This move comes shortly after Crypto Finance reached a similar agreement with Zürcher Kantonalbank in Switzerland. The service will initially focus on Bitcoin and Ether, allowing selected Commerzbank clients based in Germany to access these digital assets through a regulated and trusted partnership.

In this collaboration, Commerzbank, which is one of Germany’s largest banks in terms of branches, will handle the custody of digital assets. Meanwhile, Crypto Finance will provide trading services, ensuring the process is both smooth and secure. 

Crypto Finance, which has been active in the institutional crypto space since 2017, has strengthened its presence in Germany by acquiring several regulatory approvals from BaFin, Germany’s financial watchdog. This allows the company to offer fully compliant crypto services in the country, building on its foundation of secure and regulated services in Switzerland.

Gernot Kleckner, who leads capital markets for corporate clients at Commerzbank, expressed enthusiasm about the new service, emphasizing the high level of security in both trading and custody that the partnership delivers. In November 2023, Commerzbank became the first German universal bank to obtain a crypto custody license under §1 Abs. 1a Satz 1 Nr. 6 of the German Banking Act (KWG), allowing it to offer a wide range of services related to digital assets.

Bitwise CIO: Ethereum Faces Challenges but Remains a Dominant Force

Matt Hougan, the Chief Investment Officer at Bitwise Investments, has published a memo in which he discusses the recent market performance and challenges of Ethereum. He noted that Ethereum has become less popular, with its price compared to Bitcoin hitting a three-year low. While Bitcoin has risen by 38% this year, Ethereum has remained flat, and its competitor, Solana, has gained 31%.

Hougan attributed Ethereum’s struggles to multiple factors, including regulatory risks, especially with the upcoming U.S. elections. Hougan said the U.S. SEC has scrutinized Ethereum more than Bitcoin, potentially viewing staked ETH as a security. Additionally, rising competition from faster and cheaper blockchains, particularly Solana, is putting pressure on Ethereum. Hougan mentioned that these newer blockchains are gaining favor among certain crypto enthusiasts.

He also pointed out that Ethereum’s decision to move much of its transaction volume to Layer 2 networks, like Arbitrum and Optimism, has led to a drop in revenue for Ethereum’s core network. Furthermore, spot Ethereum ETFs have not performed as well as spot Bitcoin ETFs, with $2.7 billion in outflows from Grayscale’s Ethereum Trust.

Despite these challenges, Hougan emphasized Ethereum’s dominance in key areas like stablecoins, decentralized finance (DeFi), and high-profile projects. He pointed out that over half of all stablecoins and more than 60% of DeFi assets are based on Ethereum and that major firms, such as BlackRock, have chosen Ethereum for large projects.

Hougan likened Ethereum to Microsoft, arguing that while newer technologies may grab attention, Ethereum’s large user base, developer community, and regulatory infrastructure make it a long-term leader. He concluded by stating that Ethereum’s current issues are not existential and that the market might reevaluate its value as the U.S. elections bring potential regulatory clarity.

Canada’s Central Bank Shelves CBDC Plans, Shifts Focus to Payment Trends

The Bank of Canada has paused its efforts to introduce a digital version of the Canadian dollar. After years of research, the central bank has decided to step back from the idea, focusing instead on broader developments in payment systems both within Canada and globally.

The bank began exploring the concept of a digital currency in 2017 in response to the rapid rise of digital payments and the decreasing use of cash. Public consultations were held in 2022 to assess interest, and in 2024, the central bank released a discussion paper outlining reasons why a digital currency might be necessary to maintain monetary control and stability in a world increasingly driven by technology.

Despite the groundwork, the Bank of Canada has shifted its priorities. The central bank explained that it had conducted extensive research into the potential impacts of a digital currency on the economy and financial systems. The study also examined the technological requirements for creating a secure and accessible digital form of public money. However, rather than moving forward with a digital Canadian dollar at this time, the bank’s focus will shift toward preparing for ongoing changes in the global and domestic payments landscape.

While many nations are exploring central bank digital currencies (CBDCs), only a few, including the Bahamas, Jamaica, and Nigeria, have fully launched their own. 

Karl Schamotta, Chief Market Strategist at Corpay, commented that while cryptocurrencies have prompted a wave of financial innovation, there is little immediate need for a digital Loonie. Schamotta suggested that the central bank is likely prioritizing the proven security and reliability of the existing monetary system for the time being.

Solana Mobile Introduces Its Second Web3-Focused Crypto Phone

At the TOKEN2049 conference in Singapore, Emmett Hollyer, General Manager of Solana Mobile, introduced the company’s upcoming Web3 crypto phone, Seeker, set to launch next year. Seeker is Solana’s second blockchain-integrated phone, following the success of the Saga model. Hollyer highlighted Seeker's improved hardware, including a better battery, enhanced camera, and lighter design, along with key crypto-specific upgrades.

Seeker will come with a built-in crypto wallet and a secure Seed Vault for key storage, making crypto transactions and interactions with decentralized apps (dApps) more seamless. The Seed Vault will ensure user keys are stored separately from the phone’s other apps and the Android OS for added security.

Hollyer says that Seeker has generated strong interest, with pre-sales surpassing 100,000 units by early 2024. This demand has allowed Solana to secure improved supply chain deals for the new phone.

A major upgrade in Seeker is the updated Solana Dapp Store, which enhances app discoverability and makes it easier for users to engage with crypto applications. Hollyer noted that "tons of teams" are now developing apps specifically for Seeker, significantly expanding the Solana ecosystem.

Seeker will also track token rewards earned through various dApps more effectively, allowing users to monitor their earnings with ease. Additionally, Seeker’s access to "digital exhaust" (data from sensors, GPS, etc.) opens up new possibilities for decentralized physical infrastructure networks (DePIN), like Helium. This data can contribute to improving network mapping and tracking.

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