Worldcoin grows its presence, Saudi Aramco explores digital asset opportunities, and additional updates.

Conventional financial institutions are progressively integrating services, portfolios, and operations with digital assets, leveraging the current crypto winter to develop and identify a market fit for crypto-related offerings.

Recent instances include Deutsche Bank’s asset management division, DWS, which revealed a new partnership with Galaxy Digital and Flow Traders to collaboratively issue a euro-denominated stablecoin. In another instance, oil giant Saudi Aramco entered into an agreement with financial services company SBI Holdings regarding a potential partnership on digital assets and co-investment in SBI’s digital asset portfolios.

In the United Kingdom, pension fund M&G has allocated $20 million to the nation’s inaugural regulated Bitcoin (BTC) derivatives exchange, Global Futures & Options Holdings.

Crypto companies are also preparing to accommodate increased demand from institutional investors in 2024. On December 13, the Iota Foundation announced a collaboration with Fireblocks to facilitate the tokenization of real-world assets.

Explore this week’s Crypto Biz to discover more about the ongoing evolution of the financial landscape, including S&P Global’s stablecoin ratings, Worldcoin’s retail integrations, and Coinbase’s international crypto spot trading.

Japan’s SBI seeks to partner with Saudi Aramco for Middle East expansion

Japanese financial services provider SBI Holdings and Saudi Arabian state-owned oil enterprise Saudi Aramco are exploring a partnership on digital asset investments and semiconductor manufacturing initiatives. The two have signed a memorandum of understanding for cooperation that encompasses the establishment of SBI Middle East in Riyadh as a hub for regional operations. The document indicates that SBI and Saudi Aramco will contemplate collaboration on digital assets and co-investing in their digital asset portfolios. They may also seek out Japanese digital asset startups interested in entering the Saudi market and initiate semiconductor production projects in both nations.

S&P Global initiates stablecoin ratings, ranks GUSD, USDP, USDC highest

S&P Global has introduced a stablecoin stability evaluation that examines eight stablecoins. Initially, none received the highest rating, while two stablecoins were rated the lowest regarding their capacity to maintain fiat pegs. According to S&P Global, the assessment considers asset quality risks, mitigating factors, governance, legal and regulatory frameworks, redeemability, liquidity, technology, and third-party dependencies. Gemini Dollar (GUSD), Pax Dollar (USDP), and USD Coin (USDC) achieved ratings of 2 (strong), the highest awarded. TrueUSD (TUSD) and Frax (FRAX) both received a rating of 5, attributed to TrueUSD’s insufficient information disclosure and Frax’s continued dependence on an algorithm.

Worldcoin integrates with Shopify, Mercado Libre, Minecraft, Reddit, and Telegram

Worldcoin has unveiled a new iteration of its World ID feature, enabling users to verify their humanity on Shopify, Mercado Libre, Reddit, and Telegram. Named “World ID 2.0,” this updated feature allows developers to select from various levels of authentication, ranging from “lite” to “max.” The startup asserts that these new functionalities will help mitigate losses from bots without necessitating users to provide their personal information to the applications they utilize. Additional integrations for Worldcoin include Discord, Talent Protocol, and Okta’s Auth0.

Coinbase launches spot crypto trading for institutional investors outside the United States

Coinbase has announced the launch of crypto trading services for institutional investors on its international exchange, enabling them to trade Bitcoin and Ether (ETH) against USD Coin in the spot market. Over time, the exchange intends to broaden the service to encompass retail investors. Coinbase initiated its International Exchange in May, starting with trading for BTC and ETH perpetual futures for institutional investors, before extending the same services to retail traders in September. In the United States, the exchange is contending with a lawsuit filed by the U.S. Securities and Exchange Commission in June for allegedly functioning as an unregistered securities exchange, broker, and clearing agency.

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