February 28, 2024

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UAE organizational structure, Canaan’s declining revenues, and much more

UAE organizational structure, Canaan’s declining revenues, and much more

Behind the wave of companies moving or implementing initiatives in the UAE lies regulation. The country has introduced regulatory frameworks for decentralized autonomous organizations (DAOs), virtual asset providers, metaverse devices, and other Web3-related entities.

By offering regulatory clarity and a clear path to compliance, amid a crackdown in the US, the UAE is moving closer to achieving what it wants to be: an international financial hub for digital assets.

Although predictions vary on how this will impact the future of the UAE or the cryptocurrency space itself, history shows how countries have used regulatory loopholes to build new industries or limit existing ones.

This edition of Crypto Biz also explores Canaan’s revenue challenges, Wormhole’s massive fundraising, and Banco Santander’s crypto moves.

IOTA launches US$100 million facility in Abu Dhabi for expansion in the Middle East

Open source blockchain developer Iota has announced the launch of the Iota Ecosystem DLT Foundation in Abu Dhabi, dedicated to expanding distributed ledger technology (DLT) in the Middle East. The new foundation will be backed by $100 million in IOTA digital tokens, which will be distributed over four years. According to Dominic Scheiner, co-founder of Iota, the organization’s main goal is to convert real-world assets into digital formats. The initiative involves tokenizing assets to promote technological development in the region. Hamad Sayyah Al Mazrouei, CEO of the Abu Dhabi Global Market Registration Authority, said the country wants to be the “leading jurisdiction in the blockchain industry.”

Canaan gets new financing as revenue drops 55% in Q3

Bitcoin miner (Bitcoin), Canaan, is seeking new capital amid declining revenues and bottom lines. According to its third-quarter 2023 earnings report released on November 28, the company is looking to sell $148 million worth of stock through an at-market offering. The previous day, Canaan announced that it had reached an agreement with an undisclosed institutional investor to issue up to 125,000 preferred shares at $1,000 each, for a total of $125 million. Compared to the third quarter of 2022, the company’s revenues decreased by 55% to $33.3 million due to the decline in the price of Bitcoin. Many Bitcoin miners filed for bankruptcy in 2022 due to rising electricity costs and falling Bitcoin prices.

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Wormhole raises $225 million and has a valuation of $2.5 billion

Cross-chain protocol Wormhole has received a $225 million investment at a $2.5 billion valuation, according to an announcement on November 29. The investment round was led by Brevan Howard, Coinbase Ventures, Multicoin Capital, Jump Trading, Parafi, Dialectic, Borderless Capital, and Arrington Capital. The Wormhole Foundation also announced the launch of Wormhole Labs, which the company said is an independent technology company focused on tools and services for cross-chain development. Currently, chain-to-chain communications technology is used to connect assets, feed predictive data, and transfer non-fungible tokens.

Santander appoints Taurus as crypto custodian

Spanish financial services giant Banco Santander has reportedly chosen digital asset manager Taurus to hold Bitcoin and Ethereum (Ethereum) of its Swiss clients. Santander’s private banking unit has launched a new Bitcoin and Ether trading service for clients with Swiss accounts. A Santander spokesperson told Cointelegraph that clients will only be able to access cryptocurrency investment services after requesting them through relationship managers. In September, Taurus also partnered with German banking giant Deutsche Bank to offer crypto custody options to its customers.

before you leave: An archipelago located in the middle of the Atlantic Ocean is looking for startups and technology talent to boost its economic growth. Web3 entrepreneurs are flocking to this area.

Crypto Biz is your weekly pulse on blockchain and cryptocurrency businesses, delivered straight to your inbox every Thursday.

Investments in crypto assets are not regulated. It may not be suitable for retail investors and the entire amount invested may be lost. The services or products provided are not directed at or available to investors in Spain.

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