Tether invests $500 million for Bitcoin mining

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Tether invests $500 million for Bitcoin mining; BlackRock applies for spot Ethereum ETF; Paxos receives approval to issue USD stablecoin in Singapore

Tether has started working to become one of the best Bitcoin miners in the world.

According to Bloomberg, the company’s new CEO Paolo Ardoino noted that Tether plans to spend about $500 million over the next six months by building its own mining facilities and buying shares from other mining companies. 

Among these investments was the $610 million loan support recently provided to Bitcoin mining company Northern Data AG. Ardonio said:

“We are committed to being part of the Bitcoin mining ecosystem”

El Salvador is best place for mining

Tether’s CEO also noted that the company is building Bitcoin mines in Uruguay, Paraguay, and El Salvador, and the capacity of each facility is between 40 and 70 megawatts. 

Ardonio said the company’s goals include reaching 1 percent of its share of the computing power required to run the Bitcoin network.

Jaran Mellerud, managing director of Bitcoin mining research firm MinerMetrics, noted that if Tether reaches a 1 per cent share, it could be among the 20 largest Bitcoin mining companies in the world. 

“Given Tether’s importance and financial strength in the crypto ecosystem, its market share is expected to go well beyond the 1 per cent target over time.”

BlackRock applies for spot Ethereum ETF

BlackRock, the world’s largest asset manager, made an official application to the United States Securities and Exchange Commission (SEC) on 15 November for a spot Ether exchange-traded fund (ETF).  

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The S-1 application to the SEC stated that the Ether ETF, called iShares Ethereum Trust, aims to “reflect Ether price performance”. BlackRock’s iShares brand, which is associated with ETF products, also includes a Bitcoin ETF called iShares Bitcoin Trust. The Trust has chosen Coinbase to custody its associated ETH assets.

BlackRock’s move comes about a week after it registered the iShares Ethereum Trust with the Delaware Bureau of Corporations and almost six months after it filed its spot Bitcoin ETF application.

BlackRock spot Ether ETF S-1 application. Source: SEC  

BlackRock demonstrated the growing interest of institutions in the crypto market by launching the spot Bitcoin ETF trend in early 2023, and six months later, it joined the ranks of institutions applying for a spot ETH ETF. 

The spot ETF needs to receive SEC approval from the Departments of Trading and Markets with a 19b-4 application and Corporate Finance with an S-1 application. 

BlackRock created the ETF trends

The spot Ethereum ETF trend, which started in 2023, began in early November when the SEC accepted Grayscale Investment’s application to convert the Ethereum Trust into an ETF.    

Many institutional giants had also applied for spot ETFs during the last bull market, but the applications were rejected by the SEC, which claimed that the crypto market was not large enough for a spot crypto ETF.  

Market experts and ETF analysts assess that the chances of spot Bitcoin ETF approval could be up to 90 per cent by early 2024, while spot ETH ETF will be approved after that. 

Paxos receives approval to issue USD stablecoin in Singapore

Crypto infrastructure firm Paxos has received in-principle approval from Singapore’s market regulator to launch a US dollar-backed stablecoin.

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Paxos announced on 15 November that it has received initial approval from the Monetary Authority of Singapore (MAS) for its new entity, Paxos Digital Singapore Pte. Ltd. has received the first approval for its new organization Paxos Digital Singapore Pte. The firm, which will offer digital payment services, emphasized that it plans to issue a legal USD stablecoin under the MAS’s proposed stablecoin regulations.

On 15 August, the MAS announced its final decision to regulate non-bank-issued stablecoins anchored to the value of G10 currencies such as the Singapore dollar, euro, British pound and US dollar, with a circulating amount exceeding 5 million Singapore dollars ($3.7 million).

Paypal Stablecoin PYUSD

On 7 August, PayPal launched its USD-backed stablecoin (PYUSD) issued by Paxos.

Paxos had previously launched the BUSD stablecoin, which Binance had recently decided to remove from the market, but Paxos was ordered to stop token issuance after the New York Department of Financial Services declared the stablecoin illegal.   

Paxos announced that all stablecoins are fully backed by US dollars and cash equivalents and said it publishes monthly statements and reports to ensure compliance.

Tether invests $500 million for Bitcoin mining; BlackRock applies for spot Ethereum ETF; Paxos receives approval to issue USD stablecoin in Singapore