Stablecoin's plan to go public cancelled.

Stablecoin group Circle has ditched plans to go public in a $9bn deal through a blank cheque company chaired by former Barclays chief executive Bob Diamond, underlining how successive crises have hit the crypto sector. The tie-up, which was forged during the crypto bull market in July 2021 and expanded early this year, was seeking a valuation of $7.65bn to $9bn. The collapse of the Circle deal comes after the failure of digital asset exchange FTX, which knocked a crypto industry already under pressure from rising interest rates and a series of bankruptcies of big-name firms. Circle’s USD Coin is the second-largest stablecoin on the crypto market, with a valuation of around $43bn, according to data from Circle, falling from more than $55bn in June last year after investors pulled out of the crypto market.

Stablecoins play a key role in connecting traditional and crypto markets, with most tracking the value of a major currency such as the dollar. Crypto traders use them like cash between making bets. Many publicly listed crypto groups come been under pressure this year. Market tumult has hit other key players in the crypto industry, including broker Genesis, which halted withdrawals from its lending scheme last month, and lending platform BlockFi, which followed FTX into bankruptcy.

www.sba.tax

Comments

Cloud Bookkeeping

US FED rate rise.

The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...

EU business slide.

S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...

India- UK trade deal.

According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...

Search This Blog