Intel Report 19/9

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Analyst Note
For the time being, our intelligence will be delivered through a report-based newsletter, combining LLM systems with human analysis to deliver value-packed web3 reports. Free users can enjoy a lite version, while paid subscribers get full access to daily and seasonal reports. Thank you for your support! - Adam, Lead Researcher.

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Summary
GM, Louisiana has become the first state to accept cryptocurrency for government services using the Bitcoin Lightning Network. WisdomTree launched WisdomTree Connect, enabling access to tokenized real-world assets across any wallet. Australia’s Reserve Bank is developing a wholesale Central Bank Digital Currency, sidelining retail CBDC efforts. In the U.S., Republican lawmakers criticized the SEC’s approach to crypto regulation, pushing for legislative intervention. California enacted laws against election deepfakes, mandating swift removal of deceptive content by large social media platforms during elections.

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News Headlines
🔥 Fed Cuts Interest Rates by 50bps for First Time in 4 Years

• The Federal Reserve has cut interest rates by 50 basis points, marking the first reduction in four years. This significant move aims to lower borrowing costs and support economic stability ahead of the 2024 presidential election.

• The cut follows a two-year period of aggressive rate hikes to combat inflation, which has declined from a peak of 9.1% in 2022 to 2.5% recently. Analysts anticipate further cuts into 2025, reflecting optimism about overcoming inflation pressures.

🌐 Circle Integrates USDC with National Payment Systems of Brazil and Mexico

• Circle has integrated its USD-pegged stablecoin (USDC) into the national payment systems of Brazil and Mexico, enabling businesses to access USDC directly through local financial institutions.

• This integration eliminates the need for international wire transfers, significantly speeding up access to the stablecoin from days to minutes. USDC can now be utilized in local fiat currencies and is integrated into Brazil's PIX and Mexico's SPEI payment systems.

🏦 Goldman Sachs-backed BitGo Introduces USDS Rewarding Stablecoin

• BitGo, a cryptocurrency custodian backed by Goldman Sachs, is set to launch a new stablecoin called USDS in January 2025. This stablecoin aims to challenge established players by distributing up to 98% of its earnings to network supporters who provide liquidity.

• USDS will be backed by short-duration Treasury Bills, overnight repos, and cash. Unlike other stablecoins, USDS intends to reward participants by sharing the interest generated on its reserves rather than keeping it purely for the issuer.

🔗 Chainlink's Sergey Nazarov Predicts Asset Tokenization Will Transform Web3

• Sergey Nazarov, co-founder of Chainlink, stated that the value of tokenized real-world assets (RWAs) will surpass that of cryptocurrencies on Web3 in the coming years. He predicts trillions of dollars will flow into Web3 as traditional finance integrates blockchain technology.

• Nazarov emphasized that Chainlink's Cross-Chain Interoperability Protocol (CCIP) will be essential for creating an Internet of Contracts that connects various financial systems. The Chainlink oracle network has facilitated $15.49 trillion in transaction value since 2022.

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Market Metrics

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Fundraising & VC
1. Helius (Series B, $21.75M) - Solana Developer tooling platform
2. Hemi Network (Seed, $15M) - Modular L2 blockchain protocol
3. DeltaStream (Series A, $15M) - Real-time stream processing platform
4. TrueX (Seed, $9M) - Crypto exchange
5. Amnis Finance (Seed, $2M) - Aptos-based liquid staking protocol