Superscript has become the first broker from Lloyd’s of London to roll out a product to help Distributed Ledger Technology (DLT), digital asset and blockchain businesses, according to a company blog post Wednesday (May 11).
The product, called Daylight, will help digital asset businesses get insurance and work more easily with risks, using machine learning alongside human expertise. Daylight will provide businesses with access to a suite of covers, supporting tokenization platforms, miners, custodians, blockchain developers, non-fungible token (NFT) platforms and more.
Meanwhile, FTX announced Wednesday that it has appointed Marissa MacDonald to be its new chief compliance officer.
In a press release, FTX noted that MacDonald has “extensive experience” working in traditional finance and had previously worked for Fidelity Investments for 14 years.
Furthermore, TerraUSD algorithmic stablecoin backers are looking at raising $1.5 billion to shore up the token in the wake of its crash from the dollar peg, Bloomberg wrote Wednesday.
The investors of the proposed deal will now be able to buy the Luna coin at half-off its spot price, according to Kumar Gaurav, the founder and chief executive of crypto liquidity provider Cashaa. Luna, which is part of the peg mechanism for TerraUSD, has fallen around 95% in the past day.
In other crypto news, Grayscale, which runs the world’s biggest bitcoin fund, has met with the Securities and Exchange Commission (SEC) in private to try and persuade the regulator to approve the conversion of its flagship fund to an exchange-traded fund (ETF).
As CNBC reported Wednesday, the Grayscale Bitcoin Trust becoming an ETF would provide greater access to bitcoin and add more protections, along with unlocking $8 billion in value.
Additionally, the Financial Accounting Standards Board (FASB) has unanimously voted to start a review of the accounting rules for exchange-traded digital assets and commodities.
MicroStrategy CEO Michael Saylor, whose company owns over 129,000 bitcoin, tweeted out the news Wednesday.
Saylor has said current rules might make it so companies don’t want to hold bitcoin on their balance sheets, because the accounting forces changes when prices go lower — but doesn’t allow for anything to be regained if prices rise again later.
In other news, Bloomberg also reported Wednesday that huge chunks of numerous crypto billionaires’ fortunes have been wiped out.
A selloff of digital currencies, varying from bitcoin to ether, caused a long decline in the market value of the biggest crypto exchange in the U.S. Coinbase’s shares have now fallen 84% since their first day of trading in April of 2021, and on Wednesday, they closed at $53.72.
Finally, a new report from the Treasury Department, Federal Reserve and other regulators is looking to police stablecoin issuers in the same way they do banks, and Bloomberg wrote that would come with “robust” capital requirements and more supervision.
Federal Reserve Chairman Jerome Powell said stablecoins’ growth has made it so large amounts of U.S.-dollar-equivalent coins are now being exchanged without touching the U.S. banking system. That could mean there are fraud cases going on unnoticed, per the report.
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