BlackRock Leads $47M Funding Round in Securitize

Hi NoRamp Community,

Daily News:

1) Coinbase Rolls Out Lightning Network Support

2) BlackRock Leads $47M Funding Round in Securitize

3) Anchorage & Arca Labs Partner to Advance Tokenization Adoption

4) Payments FinTech SumUp Gets $1.6 Billion Private Credit Loan

5) Block Faces DOJ Probe Over Alleged Sanctioned Transactions

Coinbase Rolls Out Lightning Network Support:

• Coinbase now supports the Lightning Network, enhancing Bitcoin transactions with faster speeds and lower costs compared to traditional on-chain processing.

• The integration features a 0.1% processing fee for transactions, with a current withdrawal cap of $2,000, drastically reducing the costs relative to traditional payment methods like credit cards and wire transfers.

• Coinbase partnered with Lightspark, headed by former PayPal and Meta executive David Marcus, to leverage their expertise in managing liquidity and optimizing transaction routes on the Lightning Network.

BlackRock Leads $47M Funding Round in Securitize:

• Securitize, a tokenization firm, has raised $47 million in a funding round led by BlackRock, the world's largest asset manager. This partnership marks a significant step in leveraging blockchain for compliant securities trading.

• The funding will enhance Securitize's product development and help expand its operations globally, including plans to launch under the EU's DLT Pilot Regime. The firm's CEO highlighted this collaboration as a major achievement, emphasizing years of technological development and regulatory compliance.

• The strategic investment has attracted attention from both traditional financial institutions and crypto-native companies, including stablecoin issuaries Paxos and Circle. BlackRock’s involvement also includes the creation of the USD Institutional Digital Liquidity Fund (BUIDL), which is growing rapidly and leverages Ethereum-based tokens backed by U.S. Treasuries.

  

  Source: Blockworks

Anchorage & Arca Labs Partner to Advance Tokenization Adoption:

• Anchorage Digital is partnering with Arca Labs to custody shares of a tokenized Treasury fund, highlighting a significant trend in institutional crypto for 2024. This collaboration aims to enhance institutional engagement in tokenization.

• Arca Labs has issued shares of its US Treasury Fund as digital asset securities called ArCoin since 2021, aiming to replace traditional US Treasuries in enterprise workflows with benefits such as cost reduction and increased transparency.

• The partnership allows Anchorage Digital’s clients to securely store ArCoin, with the platform providing access akin to handling other supported assets. Anchorage meets the SEC’s standards for a “qualified custodian,” underscoring its commitment to secure, compliant digital asset solutions.

Payments FinTech SumUp Gets $1.6 Billion Private Credit Loan:

• SumUp, a British FinTech company, has secured a $1.6 billion loan to refinance existing debt and increase its operational capabilities. This funding aims to help the company capitalize on emerging opportunities over the next six months.

• The company plans to expand its current offerings, which serve 4 million businesses with products like POS card readers, cash advances, and tap-to-pay services in the UK, France, and the Netherlands. This expansion builds on its success in the micro-and-nano merchant sector.

• The loan package was sourced from major lenders including Goldman Sachs Asset Management, BlackRock, and Apollo Global Management. This move reflects a broader trend where tech companies increasingly turn to private credit markets for capital, which are often more accessible to high-growth potential businesses with limited profitability.

Block Faces DOJ Probe Over Alleged Sanctioned Transactions:

• Federal prosecutors in the Southern District of New York are investigating Block (formerly Square) for compliance failures in its transaction monitoring systems, following revelations from a former employee about lapses that include dealings with sanctioned nations and groups linked to terrorism.

• Block is accused of processing transactions involving countries such as Cuba, Iran, Russia, Venezuela, and groups associated with terrorism, without adequate reporting and risk assessment measures, despite senior management's awareness of these issues.

• In defense, Block asserts that its compliance program is thorough and responsible, highlighting its voluntary disclosures of questionable transactions to the Office of Foreign Assets Control (OFAC) and its efforts to remedy deficiencies by hiring an external consultant, even as the company faces internal challenges and recent board member resignations.

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