Goldman Plans Crypto Platform (Again?)

Tether US Secretary Link | Maker Stablecoin on Solana

Marco Manoppo & Karon Pangestu
November 20, 2024

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Good Morning.

We’re still in the trenches. Every 12 hours there seems to be a new meta waiting to be traded by the onchain degens. If this isn’t the bull market then I don’t know what is. Just please, for the love of god, please wait a bit before the TradFi funds began raising multi-billion crypto funds as that will clearly mark the pico top.

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In Today's Email:

What Matters: Goldman Crypto Platform 🔎
Case Study: Tether’s Banker as Commerce Secretary 💵
Governance & Features: Sky Deploys USDS Stablecoin on Solana ☁️

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Narratives: DeScience and AI memes continue to lead the onchain markets.

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WHAT MATTERS

Goldman Sachs Plans Spinout of Digital Assets Platform

IMG: The Saudi Boom

State of play: Goldman Sachs is exploring the spinout of its Digital Asset Platform into a separate company within the next 12-18 months, subject to regulatory approval, according to Bloomberg.

The initiative aims to enable large financial institutions to create, trade, and settle financial instruments using blockchain technology.
The bank is collaborating with Tradeweb Markets to develop new commercial use cases for the platform.
The platform could facilitate secondary transactions for private digital asset companies and resume Bitcoin-backed lending.
Goldman launched its crypto desk in 2021 and the Digital Asset Platform in 2022.
It has also been involved in tokenization projects and blockchain tests, focusing on permissioned networks due to regulatory considerations.
CEO David Solomon acknowledged crypto's underlying technology as transformative, despite labelling Bitcoin as speculative.

What’s next: Goldman Sachs will continue discussions with potential partners to finalize plans for the spinout, with a target timeline of 12-18 months.

Why it matters: The move signals the growing adoption of blockchain technology by traditional financial institutions, bridging the gap between legacy systems and emerging digital finance.

Our take:

For builders and investors:

CASE STUDY

Howard Lutnick, Tether’s Banker, Expected to be Trump’s Commerce Secretary

Howard Lutnick (IMG: Bloomberg)

US President-elect Donald Trump is expected to nominate Cantor Fitzgerald CEO Howard Lutnick as Secretary of Commerce. Lutnick, a vocal supporter of Bitcoin and stablecoins like Tether’s USDT, has been a key figure in Trump’s transition team.

While previously considered for Treasury Secretary, Lutnick will instead oversee trade and economic innovation as part of the Commerce Department's mission.
Cantor Fitzgerald has served as a custodian for Tether since 2021, managing US Treasury reserves backing USDT.
Recently, Cantor Fitzgerald launched a $2B Bitcoin financing business.
Lutnick has championed Bitcoin as a global, censorship-resistant commodity and expressed skepticism toward other cryptocurrencies.
Known for modernizing Cantor Fitzgerald post-9/11, Lutnick’s nomination signals continued integration of blockchain and crypto into mainstream finance under the Trump administration.

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INSIGHTS

Injective Unveils AI SDK for Onchain Agent

1/ Today, Injective is officially launching iAgent, a groundbreaking SDK that enables anyone to create their own on-chain AI agent.
By leveraging large language models (LLMs) such as OpenAI's ChatGPT, iAgent redefines the possibilities for AI finance 🚀
— Injective 🥷 (@injective)
3:57 PM • Nov 19, 2024

Injective, a Cosmos-based Layer 1 blockchain, has launched iAgent, a software development kit (SDK) that enables users to create on-chain artificial intelligence agents.

iAgent integrates OpenAI's ChatGPT and other language models, allowing users to perform Injective-based tasks such as payments, trading, and fund management through natural language commands.
The tool supports multiple independent agents tailored for specific goals, like tracking market data or executing trades.
This initiative aims to simplify blockchain interactions and enhance DeFi development on the Injective platform.

FEATURES & GOVERNANCE UPDATE

Sky Deploys USDS Stablecoin on Solana

USDS is live on @solana.
As the first major DeFi-native stablecoin on Solana, USDS unlocks new opportunities for lending, borrowing and trading across the ecosystem's top DeFi platforms.
Additionally, early adopters can access over 500,000 USDS in weekly rewards.
— Sky (@SkyEcosystem)
2:03 PM • Nov 19, 2024

Sky, formerly known as Maker, has launched its USDS stablecoin on Solana, marking its first multichain deployment since its 2017 launch.

Previously exclusive to Ethereum, USDS is now the third-largest stablecoin by market cap, following USDT and USDC.
The move aligns with Sky co-founder Rune Christensen's "endgame" strategy, which has introduced significant changes to the protocol.
The deployment leverages Wormhole's native token transfer framework, with liquidity incentives of over 500,000 USDS weekly to be distributed.
Sky’s rebrand faced community challenges, but the deployment of Solana, known for its rising activity, could provide a morale boost.
For Solana, onboarding USDS might help grow its modest 2% stablecoin market share compared to Ethereum's 51%.

Other notable feature updates:

Pendle introduces Boros.
Avara has introduced Family.
Argent launches the Argent Card.
Espresso Network is now live on mainnet.
PancakeSwap launches Swap Bot on Telegram.
Avalon Labs introduces $USDa with Ethena Labs.
Karak launches Wormhole's Decentralized Validator Network on testnet.
Taiko has integrated multiple ZK proofs from RiscZero and Succinct Labs.

QUICK BITES

Paxos is looking to buy Membrane Finance.
Russia to ban crypto mining in certain territories for winter.
Wall Street giants are loading up on MicroStrategy shares.
Shaq agrees to pay $11M to settle the NFT class action lawsuit.
Bernstein names Robinhood as the top crypto deregulation trade.
Coinbase CEO to meet Trump to discuss 'personnel appointments.'
BlackRock Bitcoin ETF's options volume pushes BTC to new ATH.
Coinbase to delist wBTC as Justin Sun gains influence over protocol.
Russia proposes a 15% tax on crypto income from trading and mining.
Trump expected to pick Lutnick to lead the Department of Commerce.
South Korea to push 20% crypto tax in 2025 with higher exemption limit.

NOTEWORTHY READS & MEME

Chain of Thoughts’ read on virtuals protocol.
Daryl Lau’s read on truth bombs after 7 figures.
Cumberland’s read on the memecoin market structure.

BREAKING: GenZ Quant joins the Ethereum Foundation to help with treasury management
— blocmates. (@blocmatesdotcom)
6:55 AM • Nov 20, 2024

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.