Regulatory frameworks in the United Arab Emirates (UAE) are drawing in crypto companies and initiatives. The country has introduced regulations for decentralized autonomous organizations (DAOs), virtual asset providers, metaverses, and other Web3-related entities. With clear regulatory guidelines and a path to compliance, the UAE aims to become an international financial hub for digital assets, especially as the United States tightens its regulations. History has shown that countries can leverage regulatory gaps to build new industries or control existing ones. This week's Crypto Biz also covers Canaan's revenue challenges, Wormhole's fundraising success, and Banco Santander's crypto moves.
Iota Launches $100 Million Abu Dhabi Foundation for Middle East Expansion
Open-source blockchain developer Iota has announced the launch of the Iota Ecosystem DLT Foundation in Abu Dhabi, with the aim of expanding its distributed ledger technology (DLT) in the Middle East. The foundation will be supported by $100 million in Iota (IOTA) digital tokens, to be vested over four years. The foundation's primary objective is to convert real-world assets into digital formats, including tokenization, to advance technology development in the region. The CEO of the Registration Authority of the Abu Dhabi Global Market expressed the country's ambition to be a leading jurisdiction for the blockchain industry.
Canaan Seeks New Financing as Revenue Falls 55% in Q3
Bitcoin miner Canaan is looking for new capital as its revenue and bottom line slump. According to its Q3 2023 earnings report, the company plans to sell $148 million in equity through an at-the-market offering. Canaan has also reached an agreement with an undisclosed institutional investor to issue up to 125,000 preferred stock at $1,000 apiece, bringing in $125 million. Compared to the same period in 2022, the company's revenue dropped 55% to $33.3 million due to the decline in Bitcoin's price. Rising electricity costs and lower BTC prices have led several Bitcoin miners to file for bankruptcy in 2022.
Wormhole Raises $225 Million at $2.5 Billion Valuation
Cross-chain protocol Wormhole has secured a $225 million investment at a valuation of $2.5 billion. The investment round was led by Brevan Howard, Coinbase Ventures, Multicoin Capital, and other prominent investors. Wormhole Labs, an independent technology company focused on cross-chain development tools and services, was also launched. The company's blockchain-to-blockchain communications technology is currently used for bridging assets, powering oracle data feeds, and transferring nonfungible tokens.
Santander Appoints Taurus as Crypto Custodian for Bitcoin and Ether
Banco Santander, a Spanish financial services giant, has chosen digital asset management firm Taurus to safeguard Bitcoin and Ether for its Swiss clients. Santander's private banking unit recently introduced a Bitcoin and Ether trading service for clients with Swiss accounts. Access to crypto investment services will only be granted to clients upon request through relationship managers. Taurus has also partnered with Deutsche Bank to offer cryptocurrency custody options to its customers.
Before you go: An archipelago in the middle of the Atlantic is seeking startups and tech talents to boost its economic growth. Web3 entrepreneurs are flocking to this region.
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