GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Binance Labs Invests $1M in Bitcoin Staking Platform Lombard

- TON Chooses Axelar to Link 68 Blockchains in Web3 Ecosystem

- MoonPay Teams Up with Ripple to Offer XRP to Customers

- Canary Capital Proposes Litecoin ETF Amid Crypto ETF Expansion

- HashKey Delays HSK Token Launch Amid Market Challenges

- Coinbase Ends Paycheck Deposit, New Wallet Feature Coming

Binance Labs Invests $1 Million in Bitcoin Liquid Staking Platform Lombard to Drive Expansion 

Binance Labs, the venture capital arm of Binance, has invested approximately $1 million in Lombard, a Bitcoin liquid staking platform. Lombard, built on Babylon, another Binance portfolio company, allows users to stake Bitcoin through its LBTC token, which earns native yields while maintaining the value of the original asset. With over $640 million in total value locked (TVL), Lombard has become a key player in the Bitcoin staking ecosystem. Lombard's LBTC token is already being utilized in decentralized finance (DeFi) applications such as lending, borrowing, and yield farming across protocols like Pendle, Maple Finance, and ZeroLend.

Lombard's strategy is driven by the belief that if 10% of Bitcoin’s $1.5 trillion market cap flows into DeFi, it could more than double the total value locked within the ecosystem. The funding from Binance Labs will enable Lombard to expand access to LBTC across new blockchains, starting with BNB Chain, allowing Binance BTCB holders to switch to LBTC and earn Babylon staking yields. In the future, LBTC will be available on prominent blockchains like Ethereum Layer 2 networks, Solana, and more. Lombard also plans to collaborate with blue-chip DeFi protocols and centralized exchanges (CEXs) to grow its ecosystem. Currently, Lombard has a 15-person team, with plans to hire across product design, growth, and marketing roles to support this expansion.

TON Foundation Partners with Axelar to Integrate 68 Blockchains, Enhancing Cross-Chain Connectivity in Web3

The Open Network (TON) Foundation has selected Axelar’s Mobius Development Stack (MDS) to connect its ecosystem with 68 blockchain networks, enhancing cross-chain interoperability. This partnership aims to increase the scalability and usability of decentralized applications (dApps) within the TON ecosystem while improving connectivity with major blockchain networks like Ethereum, Cosmos, and Polkadot. Axelar’s Interchain Amplifier technology will allow developers on the TON platform to seamlessly transfer assets and data across these networks. The selection of Axelar’s stack followed an extensive evaluation process focused on security, ease of integration, and flexibility, making it the ideal solution for TON’s cross-chain needs.

This integration will simplify the user experience by eliminating the need for bridging solutions, reducing liquidity fragmentation, and enabling smoother transactions and interactions. As the demand for cross-chain interoperability grows within the Web3 space, TON users will gain more access to decentralized finance (DeFi) options and a broader range of Web3 applications. Axelar’s technology has been central to similar collaborations in the blockchain ecosystem, such as the Ronin Network's integration with Chainlink's Cross-Chain Interoperability Protocol (CCIP). This partnership reinforces TON’s commitment to enhancing its blockchain infrastructure and advancing the Web3 ecosystem.

MoonPay Partners with Ripple to Enable XRP Purchases, Expanding Crypto Accessibility for Users

MoonPay, a leading crypto payments platform, has announced a partnership with Ripple, allowing its users to directly purchase, manage, and store XRP within their MoonPay accounts. This development, shared by MoonPay on X, makes XRP accessible alongside popular cryptocurrencies such as Bitcoin, Ethereum, and Tether, which are already available on the platform. Customers can buy crypto assets using various payment options, including credit cards, Apple Pay, Google Pay, and PayPal, making the process simple and convenient.

MoonPay's collaboration with Ripple also aligns with Ripple’s broader strategy, as MoonPay was named an exchange partner ahead of Ripple's upcoming launch of the RLUSD stablecoin. This partnership follows MoonPay's recent approval from the Australian regulatory body AUSTRAC, granting it the ability to offer crypto exchange services in the country. With this regulatory backing, MoonPay has also integrated local payment methods like Osko and PayID, further boosting its global reach. The expansion reflects MoonPay's commitment to enhancing crypto accessibility while maintaining regulatory compliance. This move underscores the growing utility of XRP in the crypto payments space.

Canary Capital Proposes Litecoin ETF Amid Expanding Crypto ETF Offerings, Faces Regulatory Challenges

Canary Capital has announced plans to launch a Litecoin ETF, which will directly hold Litecoin (LTC) and calculate its net asset value using the CoinDesk Litecoin Price Index. This marks a significant step for Canary Capital as it continues expanding its cryptocurrency ETF offerings, following its recent proposal of an XRP ETF. The firm’s efforts reflect a growing ambition to diversify beyond Bitcoin and Ethereum-based products, aiming to capture more of the altcoin market.

However, Canary’s Litecoin ETF may encounter regulatory hurdles, as the absence of a regulated futures market for Litecoin could delay its approval, much like other altcoin ETFs in the past. Despite these potential challenges, Canary Capital remains optimistic. They point to the recent approval of spot Bitcoin and Ethereum ETFs by the SEC as a promising indication that broader acceptance of crypto ETFs is on the horizon. The firm believes this move could pave the way for altcoin-based ETFs to gain regulatory approval in the near future, expanding investment opportunities for the crypto sector.

Hong Kong's HashKey Postpones HSK Token Launch Due to Market Downturn, Cites Need for Better Timing

Hong Kong's leading licensed crypto exchange operator, HashKey, has delayed the launch of its HSK token due to unfavorable market conditions. In an announcement made on Oct. 15, HashKey emphasized the importance of waiting for a "better opportunity" before proceeding with the token generation event, citing a "relatively subdued" crypto market over the last three months. The decision to postpone was made in consensus with partners and centralized exchanges, as HashKey believes that rushing the launch would not be in the best interests of the community.

Despite the temporary setback, the company remains optimistic about the long-term prospects of the HSK token and expects a "significant growth surge" in the crypto market by year-end. Initially announced in November 2023, the HSK token is an ERC-20 token designed to incentivize contributors within the HashKey ecosystem. It offers perks such as fee discounts, asset issuance rights, and early access to future token subscriptions. The total supply of HSK tokens is capped at 1 billion, with allocations for marketing, business development, and team rewards. HashKey also plans to burn a portion of the tokens, using 20% of net profits to counteract supply dilution from rewards.

Coinbase to End Paycheck Direct Deposit Feature, Announces New Wallet Integration Amid User Frustration

Coinbase, the leading U.S. crypto exchange, has announced it will discontinue its Paycheck Direct Deposit service starting November 25, 2024. This feature allowed users to allocate part or all of their paycheck to be paid directly in cryptocurrency. Users were notified via email and instructed to unlink their Coinbase accounts from paycheck systems to avoid payment delays. The sudden decision has sparked discontent, with many users expressing frustration on social media, citing reliance on the feature for regular crypto investments.

A Coinbase spokesperson explained that the service is being "wound down" but promised a revamped retail direct deposit experience in the near future. The company is introducing a new Coinbase Wallet Direct Deposit feature, which will allow users to get paid directly in crypto and have funds deposited into their Coinbase wallets. This new service is expected to roll out over the next few months. However, the company has yet to announce an exact launch date, potentially creating a service gap between the discontinuation of the old feature and the implementation of the new one. Coinbase acknowledged this gap, apologizing to users for the inconvenience, and assured improvements in the future.

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