GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- BitGo Taps Ex-Silvergate President to Drive USD Standard Stablecoin Strategy

- Paxos Partners with DBS for New USD-Backed Stablecoin USDG in Singapore

- Tether to Release Dirham Stablecoin on TON Blockchain

- NEBRA Debuts Cost-Saving ZK Aggregator on World Chain

- VanEck Invests in Web3 Gaming Startup Gunzilla

- Zircuit Launches EIGEN Fairdrop for Inclusive Ethereum Staking Rewards

BitGo Appoints Former Silvergate President Ben Reynolds to Spearhead USD Standard Stablecoin, Emphasizing Reward-Based Model and Transparent Backing for Global Expansion 

Crypto custodian BitGo has named Ben Reynolds, former president of Silvergate Bank, as managing director, tasking him with the strategic expansion of BitGo’s newly launched USD Standard stablecoin. Reynolds, with over 25 years in fintech and banking, led Silvergate through major industry shifts, including challenges during the FTX collapse in 2022. At BitGo, he will focus on driving USD Standard’s growth and adoption globally. BitGo’s USD Standard, launched in mid-September, stands out due to its 1:1 U.S. dollar backing through short-term Treasury bills, overnight repos, and cash, ensuring high liquidity and stability.

Designed with institutional partners in mind, the stablecoin offers rewards for liquidity providers, encouraging broader ecosystem participation. BitGo has emphasized transparency with real-time proof-of-reserves, aligning with its commitment to security and operational excellence. As competition grows from entrants like Coinbase and Kraken, BitGo, which dominates over 96% of the Wrapped Bitcoin market, is positioning USD Standard as a resilient, secure option in the stablecoin space. Reynolds expressed enthusiasm for this new chapter, underscoring BitGo’s mission to redefine stablecoin standards and contribute to a more accessible, resilient financial landscape.

Paxos and Singapore's DBS Bank Launch USD-Backed Stablecoin “Global Dollar” (USDG) under MAS Regulatory Framework, Aiming for Global Enterprise Adoption

Paxos, a blockchain infrastructure company, has introduced a new stablecoin, Global Dollar (USDG), backed by the U.S. dollar and designed to align with Singapore’s upcoming stablecoin regulations. Paxos Digital Singapore, a local subsidiary, will issue USDG, while DBS Bank, Singapore’s largest by assets, will oversee cash management and custody for USDG reserves. This collaboration highlights Paxos's commitment to regulatory compliance and its strategy to drive stablecoin adoption on a global scale. According to Ronak Daya, Paxos's Head of Product, enterprise demand for regulated and incentive-driven stablecoin solutions has surged, with USDG expected to catalyze this interest.

Paxos received the Monetary Authority of Singapore’s (MAS) approval to issue stablecoins in July, adhering to a framework that mandates stability through low-risk, highly liquid reserves, a base capital of one million Singapore dollars, and transparent disclosures for holders. USDG will initially operate on the Ethereum blockchain, with plans to expand to other blockchains. Notably, USDG is Paxos's sixth digital asset and second localized stablecoin, following the recent launch of Lift Dollar (USDL) in the UAE. MAS Deputy Managing Director Ho Hern Shin underscored that the framework aims to bridge the fiat and digital asset ecosystems, establishing stablecoins as a credible medium of exchange within Singapore's financial landscape.

Tether to Launch Dirham-Pegged Stablecoin on TON, Backed by UAE Reserves and Supported by Phoenix Group and Green Acorn Investments

Tether, the global stablecoin issuer, has announced the launch of its dirham-backed stablecoin on The Open Network (TON) blockchain. This digital asset, pegged to the UAE dirham (AED), is designed to provide stability and trust for users by being fully backed by liquid UAE-based reserves. The announcement was made at the TON Gateway event in Dubai by Alessandro Giori, Tether’s senior strategic partnership manager, who noted TON’s impressive growth rate—reaching 1 billion USDT transactions faster than any other blockchain. Tether’s collaboration with UAE-based firms Phoenix Group and Green Acorn Investments aims to integrate dirham-stablecoins into the UAE's digital ecosystem, tying each token to the value of the AED.

TON has rapidly gained traction, with 160,000 daily USDT transactions and 7.6 million wallets currently operating on the blockchain. Additionally, Tether's partnership with Fireblocks enables broader access to TON-based USDT, allowing companies using Fireblocks to participate in the growing TON ecosystem. This move follows UAE’s recent approval of a regulatory framework for stablecoins, providing clarity for licensing and issuance of dirham-backed tokens. With the UAE’s central bank offering in-principle approval to local issuer AED Stablecoin, Tether’s expansion into the UAE's stablecoin market aligns with the region’s ambitions to lead in regulated digital currencies.

NEBRA Launches Universal Proof Aggregator Tool on World Chain to Cut ZK Proof Costs for Digital Identity Verification by Over 90%

Zero-knowledge proof (ZK) startup NEBRA has launched a Universal Proof Aggregation (UPA) tool on World Chain, a digital identity blockchain network supported by OpenAI CEO Sam Altman. This Ethereum-based tool is set to reduce the costs of running complex ZK proofs on World Chain by over 90%, significantly enhancing efficiency for developers and World App users alike. By condensing multiple ZK systems, such as zkVMs and zkRollups, into a single, compact proof, NEBRA’s tool optimizes blockchain verification processes, reducing computational demands and associated expenses. The integration is especially pivotal for World Chain, which leverages zero-knowledge technology to offer secure, private digital identity solutions as a countermeasure against misinformation, deepfakes, and spam in the digital age.

World Chain’s network identifies verified users—using an eye-scanning device—who are then issued digital passports for secure web navigation. NEBRA’s UPA tool will also reinforce World Chain’s privacy commitments by increasing transparency while upholding its values of censorship resistance and privacy as a human right. NEBRA, a participant in World Chain’s Community Grants Program, is backed by $4.5 million in funding from prominent investors such as Nascent, Bankless Ventures, and a16z’s Crypto Startup Accelerator.

VanEck Makes Second Web3 Gaming Investment, Backs Gunzilla Games for Cyberpunk Shooter With Play-to-Earn Model

VanEck’s private crypto fund has made another move into Web3 gaming, investing in Gunzilla Games, a Web3-focused gaming startup and developer of Off The Grid, a cyberpunk shooter where players earn Gunzilla’s native GUN token. This marks VanEck's second Web3 gaming investment, following its March investment in Parallel, a Web3 card game utilizing NFTs to enable player-owned digital assets. Gunzilla’s Off The Grid game enables players to earn and trade in-game items as tokens, providing a transparent, player-controlled economy on the Avalanche-based GUNZ subnet, according to VanEck’s Matt Maximo.

He noted the potential of blockchain in gaming, highlighting that it offers enhanced monetization and ownership options, something traditional gaming has explored through platforms like Steam’s marketplace, which saw $32 billion in peer-to-peer trading volume. Gunzilla has tapped celebrated author Richard Morgan, known for Altered Carbon, and director Neill Blomkamp to shape Off The Grid’s immersive world, blending storytelling and blockchain gaming mechanics. Recent figures from Konvoy VC show strong momentum for gaming startups, with $517 million invested in Q3 2024, indicating continued interest in blockchain-enabled gaming experiences.

Zircuit Introduces EIGEN Fairdrop to Promote Fair, Inclusive Ethereum Staking Rewards

Zircuit, a blockchain focused on security and innovation, has announced the launch of its EIGEN Fairdrop initiative, designed to establish a fair and accessible model for Ethereum staking rewards. With the EIGEN Fairdrop, Zircuit aims to ensure that staking rewards benefit all EigenLayer participants, irrespective of their stake size, fostering a more inclusive Ethereum ecosystem. Martin Derka, Zircuit’s co-founder, emphasized that the Fairdrop represents a commitment to a decentralized future where staking supports various contribution levels equally.

EigenLayer has already been instrumental in enhancing Ethereum’s security model across decentralized finance and Web3, and the Fairdrop is intended to further these efforts by rewarding smaller stakeholders and bolstering community participation. Zircuit has invited over 190,000 eligible users to claim rewards by verifying their eligibility on Zircuit’s Fairdrop page. Eligibility for this industry-first initiative was determined through a snapshot taken on October 8, 2024, of Ethereum Block #20919999, capturing all wallets holding at least 3 EIGEN tokens. Zircuit offers robust AI-based protection against hacks and smart contract exploits, positioning itself as a premier security-focused liquidity hub for restaked assets.

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