GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

 - Keyrock Teams Up with Deutsche Bank to Boost FX and Multi-Currency Services

- Samara Asset Group Plans $32.8M Bond Issuance to Boost Bitcoin Reserves

- Ex-FTX Exec Ryan Salame Begins Prison Sentence, Faces Campaign Finance Scrutiny

- Paradigm Execs Unveil Web3 Firm Ithica and Ethereum L2 Odyssey

- UAE Central Bank Approves Regulated AED Stablecoin

- Vitalik Buterin Discusses Ethereum's Post-Merge Future

Ripple-Backed Keyrock Partners with Deutsche Bank to Expand Foreign Exchange and Multi-Currency Account Services

Ripple-backed crypto firm Keyrock has announced a strategic partnership with Deutsche Bank to enhance its payment and foreign exchange (FX) services. The collaboration aims to leverage Deutsche Bank's institutional infrastructure to support multi-currency accounts in over 10 currencies, optimizing FX settlements for Keyrock's operations. This partnership will allow Keyrock to enhance settlement times with counterparties across EMEA, APAC, and LATAM regions, reducing risks and streamlining operations.

Kevin de Patoul, CEO of Keyrock, expressed enthusiasm about working with one of the most respected institutions in global finance. The move aligns with Deutsche Bank's ongoing commitment to supporting technological innovation in the fintech space. Keyrock, a crypto market maker founded in 2017, operates across over 85 trading venues worldwide. It has raised $72 million in a Series B funding round, with Ripple, SIX Fintech Ventures, and Middlegame Ventures among its backers. The partnership marks an important step in expanding Keyrock’s crypto and fiat trading capabilities globally.

Samara Asset Group to Issue $32.8 Million Bonds to Expand Bitcoin Holdings and Diversify Investments

Samara Asset Group, an investment firm, plans to issue a €30 million ($32.8 million) bond through Pareto Securities to increase its Bitcoin holdings and diversify its portfolio into alternative investments. According to an announcement on October 14, the firm aims to buy stakes in emerging technologies and alternative investment funds, with Bitcoin remaining a key treasury reserve asset. The bonds will be listed on the unregulated Oslo and Frankfurt stock exchanges, with a minimum subscription set at €100,000.

Samara’s CEO, Patrick Lowry, emphasized the firm's commitment to Bitcoin, stating that the bond proceeds will strengthen the firm's balance sheet and further its goal of supporting innovative technologies. Samara is optimistic about increasing its Bitcoin reserves to rival corporate giant MicroStrategy, which holds over $458 million worth of BTC. Samara’s share price rose by more than 6% following the announcement. Christian Angermayer, a member of the firm's Advisory Committee, expressed excitement about leveraging the funds to invest in disruptive technologies and bolster their Bitcoin holdings.

Brazil’s Central Bank Opens Applications for Digital Currency Pilot Project, Drex, Aiming to Expand Use Cases

The Central Bank of Brazil has launched the second phase of its central bank digital currency (CBDC) pilot, Drex, inviting applications from companies to propose new and complex use cases for the tokenized real. Applications will be accepted from October 14 to November 29, following the first phase where 16 consortiums, mostly led by banks, tested the digital currency in decentralized transactions like tokenized government bonds. The Central Bank has already approved 13 initial cases, including government-backed loans, carbon credits, and real estate transactions. This phase aims to attract more participants and explore intricate applications in sectors like agribusiness and automotive.

Privacy remains a key focus, with ongoing challenges in ensuring transaction confidentiality between participants. Drex’s goal is to build a robust tokenization infrastructure for Brazil’s financial system. João Pedro Nascimento, President of Brazil's Securities and Exchange Commission, noted that tokenization is a sustainable business model for the future, calling for regulatory integration of traditional assets with blockchain. Brazil’s CBDC efforts align with a broader global trend, as over 130 countries are exploring digital currencies, with China’s digital renminbi (e-CNY) already surpassing $1 trillion in transaction volume.

Paradigm Execs Launch Web3 Development Firm Ithica, Unveiling Ethereum Layer 2 Network Odyssey

Georgios Konstantopoulos, the Chief Technology Officer and general partner of Paradigm, has launched Ithica, a new Web3 development company dedicated to accelerating open-source infrastructure in the crypto space. Backed by a $20 million investment from Paradigm, Ithica will be chaired by Paradigm co-founder Matt Huang. Ithica’s first major project is Odyssey, an Ethereum Layer 2 network that leverages tools like Reth, Paradigm's consensus layer, Optimism’s OP Stack, and Conduit’s rollup service. Odyssey is live on Ethereum’s Sepolia testnet, supporting upcoming upgrades, including smart accounts and enhancements to the Ethereum Virtual Machine.

Ithica plans to further advance innovations in interoperability, zero-knowledge technology, and the development of Ethereum’s rollup ecosystem. The launch of Odyssey has positively impacted the market, with Optimism's OP token rising by 5% over the past week. Konstantopoulos emphasized that his work with Ithica will not interfere with his ongoing roles at Paradigm, where he will continue investing in Web3 projects. Paradigm’s portfolio includes major players like Coinbase, Uniswap, and Lido, among others.

UAE Central Bank Approves First AED Stablecoin, Marking a New Era for Crypto Adoption

The UAE Central Bank has granted in-principle approval for the nation’s first regulated AED stablecoin, AE Coin, under the "Payment Token Services Regulation" framework. This historic move is expected to accelerate crypto adoption across the UAE, blending traditional finance with modern blockchain technology. AE Coin will be fully backed by UAE Dirhams, ensuring both stability and speed for digital payments. As part of the UAE’s Digital Government Strategy 2025, AE Coin will help boost the digital economy by offering new options for businesses and individuals, including integration with decentralized finance (DeFi) platforms.

The blockchain-backed stablecoin ensures secure, transparent transactions, likely increasing trust and adoption among residents and businesses. Plans are in motion to partner with online stores and introduce a mobile wallet, making digital currency more accessible in everyday life. AE Coin’s launch signals a significant step towards integrating crypto into the UAE’s financial services, offering faster, safer, and more secure transactions.

Vitalik Buterin Shares Vision for Ethereum's Post-Merge Future: Speed, Security, and Accessibility in Focus

Ethereum co-founder Vitalik Buterin shared his reflections on Ethereum's post-Merge future, outlining key advancements for the protocol. In a blog post on October 14, Buterin emphasized the need for improvements in transaction speed, security, and accessibility as Ethereum continues to evolve after its transition to proof-of-stake (PoS). One priority is reducing transaction times, which currently take around 15 minutes, by exploring concepts like single-slot finality to alleviate network congestion. Buterin also proposed lowering the staking requirement from 32 ETH to 1 ETH, making staking more accessible to a broader range of users and enhancing Ethereum's decentralization.

Security enhancements are also in focus, with Buterin suggesting cryptographic solutions such as single secret leader election to protect the network from attacks and addressing potential quantum computing threats. His vision aligns with Ethereum’s roadmap toward the Prague-Electra (Pectra) upgrade, scheduled for the first quarter of 2025, which will continue refining the protocol. These advancements aim to strengthen Ethereum’s position as a leading blockchain network while making it more user-friendly and secure for all participants.

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