The Bank for International Settlements (BIS) has announced that more than 40 private-sector financial firms will join Project Agorá, a blockchain-based initiative designed to improve wholesale cross-border payments.

BlackRock’s recent white paper, “Bitcoin: A Unique Diversifier,” examines the qualities of Bitcoin that make it a unique asset for modern investment portfolios.

MicroStrategy Inc., a Nasdaq-listed software company, announced on September 20 that it had acquired 7,420 bitcoins for approximately $458.2 million, funded by the proceeds of a debt offering.

The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq's International Securities Exchange (ISE) to list and trade options on BlackRock's iShares Bitcoin Trust (IBIT), expanding the range of derivatives tied to Bitcoin.

Top stories in the Crypto Roundup today:

• 40 Financial Firms Join Project Agorá to Explore Tokenization for Cross-Border Payments
• BlackRock Explains Why Bitcoin Is a ‘Unique’ Portfolio Diversifier
• MicroStrategy Buys $458M Worth of Bitcoin, Expanding Its Holdings to 252,220 BTC
• U.S. SEC Approves Trading of Options on Shares of BlackRock's Spot Bitcoin ETF

40 Financial Firms Join Project Agorá to Explore Tokenization for Cross-Border Payments

The Bank for International Settlements (BIS) has announced that more than 40 private-sector financial firms will join Project Agorá, a blockchain-based initiative designed to improve wholesale cross-border payments. 

The selected companies, which include industry leaders such as JPMorgan Chase & Co., Deutsche Bank AG, Visa, and Mastercard, were convened by the BIS and Institute of International Finance (IIF) and will collaborate with seven central banks, including the Federal Reserve Bank of New York, the Bank of England, and the Bank of Japan, among others.

Project Agorá, launched by the BIS in May 2024, focuses on exploring how tokenization can improve the speed, transparency, and security of international payments. The project’s overarching goal is to establish a unified ledger that integrates tokenized commercial bank deposits with central bank digital currencies (CBDCs).

The addition of these private firms helps the central banks design a programmable platform that allows for the seamless integration of tokenized assets. This platform is expected to use smart contracts to automate payment processing and settlement, reducing the need for intermediaries and cutting transaction costs.

The project is currently in its design phase, with the BIS expecting a final report by the end of 2025. This report will outline the technical prototype, along with potential legal and regulatory challenges in each of the participating jurisdictions.

BlackRock Explains Why Bitcoin Is a ‘Unique’ Portfolio Diversifier

BlackRock’s recent white paper, “Bitcoin: A Unique Diversifier,” examines the qualities of Bitcoin that make it a unique asset for modern investment portfolios. While Bitcoin’s volatility is well-known, BlackRock emphasizes its non-correlation with traditional assets like stocks and bonds, making it a valuable tool for portfolio diversification, especially for institutional investors.

According to BlackRock, Bitcoin’s decentralized nature and fixed supply separate it from central bank influences, positioning it as an asset that can withstand traditional monetary risks. This independence is a major factor in its potential appeal as a portfolio diversifier.

One of Bitcoin’s standout traits, according to BlackRock, is its low historical correlation with other asset classes. Although Bitcoin sometimes moves in line with broader markets during short-term sell-offs, its long-term behavior generally diverges from traditional assets. BlackRock highlights that this unique characteristic helps reduce overall portfolio correlation, offering opportunities for enhanced returns.

The white paper also discusses Bitcoin’s notorious volatility. BlackRock notes that while this volatility may deter some investors, small allocations of Bitcoin can actually improve a portfolio’s risk-adjusted returns. The firm stresses that careful allocation management is key to balancing the asset’s volatility against its benefits.

Bitcoin’s role as a non-sovereign store of value is another aspect that BlackRock underscores. With its decentralized structure and capped supply, Bitcoin can serve as a hedge against inflation, currency debasement, and geopolitical instability, making it a potentially valuable asset in uncertain economic times.

MicroStrategy Buys $458M Worth of Bitcoin, Expanding Its Holdings to 252,220 BTC

MicroStrategy Inc., a Nasdaq-listed software company, announced on September 20 that it had acquired 7,420 bitcoins for approximately $458.2 million, funded by the proceeds of a debt offering. The purchase, which took place between 13 and 19 September, was made at an average price of about $61,750 per bitcoin.

The firm had earlier expanded its convertible note issuance to $1.01 billion, up from the $700 million initially planned, as disclosed in a filing to the U.S. Securities and Exchange Commission (SEC) on Friday.

MicroStrategy’s Bitcoin yield, a metric indicating the percentage change in its BTC holdings relative to its fully diluted shares, rose to 5.1% this quarter from 4.4% as of September 13, based on the company's filings.

Under the leadership of Co-Founder and Executive Chairman Michael Saylor, MicroStrategy has become a major advocate for holding Bitcoin as a corporate treasury asset. Since it started accumulating Bitcoin in 2020, it has become the largest corporate holder of the cryptocurrency. With this latest purchase, MicroStrategy now owns 252,220 BTC, valued at nearly $16 billion based on current market prices. 

The company's average acquisition cost is $39,266 per BTC, totaling around $9.9 billion in investment. Furthermore, the firm has approximately $889 million left from its $2 billion at-the-market (ATM) equity issuance to continue buying Bitcoin, according to recent regulatory filings. MicroStrategy stock (NASDAQ: MSTR) closed at $144.78 on Friday, up 5.78% for the week. In the year-to-date period, MSTR is up 111.30%.

Several other public companies, including Semler Scientific, Marathon Digital, and Japanese investment adviser Metaplanet, have followed MicroStrategy's lead by issuing debt to acquire Bitcoin.

U.S. SEC Approves Trading of Options on Shares of BlackRock's Spot Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq's International Securities Exchange (ISE) to list and trade options on BlackRock's iShares Bitcoin Trust (IBIT), expanding the range of derivatives tied to Bitcoin. The approval allows investors access to more sophisticated financial tools to manage their exposure to the world’s leading cryptocurrency. This move is seen as another step toward the broader integration of Bitcoin within traditional financial markets.

BlackRock has been working towards this goal since March 2024, after the approval of multiple Bitcoin-linked exchange-traded funds (ETFs) in the U.S. The SEC's approval comes after Nasdaq ISE submitted a series of amendments to its original filing to address concerns about market manipulation and the risks inherent in cryptocurrency options trading. These amendments were key to getting the regulatory green light.

In addition to options on Bitcoin, Nasdaq ISE has also proposed listing and trading options on BlackRock’s iShares Ethereum Trust. According to the filing, the assets of this trust will consist solely of Ethereum and cash, with Coinbase acting as the custodian. The trust will avoid engaging in staking, reducing some of the risks typically associated with Ethereum’s proof-of-stake consensus mechanism.

For options on the iShares Bitcoin Trust, the SEC approved a conservative position limit of 25,000 contracts. These options will be physically settled and feature American-style exercise, offering investors a way to hedge their exposure to Bitcoin. Despite ongoing concerns over the volatility of cryptocurrency derivatives, the SEC determined that Nasdaq ISE's surveillance mechanisms, including agreements with the CME, would be sufficient to deter any potential manipulation.

However, some opposition was voiced during the review process, with critics urging the SEC to delay approval until the Bitcoin market stabilizes.

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