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Binance could move forward with a plan to let select traders hold their collateral funds in a bank, Bloomberg reports.

Bloomberg’s Justina Lee and Anna Irrera reported that the plan, which hasn’t yet been finalized, would involve storing such funds in a bank rather than on Binance itself.

One possible arrangement, per Bloomberg, would involve locking up those funds while Binance lends the clients stablecoins that would then serve as collateral for trading in both spot and derivatives markets.

Sources told Bloomberg that two banks — Europe-based Bank Frick and FlowBank — had been floated in conversations about the prospective plan. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The derivatives agency said that clearing organizations it oversees have moved into the crypto space and it issued a reminder that they need to actively address the risks.

The company said it has multiple years of runway ahead, despite the need to now reduce expenses.

The Bitcoin Miladys project released a bridge for Ethereum NFTs to be transferred to the Bitcoin blockchain. 

This is part of the explosion of NFTs on Bitcoin, under the Ordinals umbrella — something that has led to surging rewards for Bitcoin miners.

Currently, most Ordinals are being created natively on the Bitcoin blockchain, including tokens representing common Ethereum collections (like Bitcoin Miladys) and entirely new projects. But the new bridge will allow pre-existing collections to be effectively transferred to Bitcoin, potentially leading to closer collaboration between the ecosystems on both blockchains.

There’s just one catch.

“Yes, it’s a one way bridge,” the Bitcoin Miladys project told The Block via Twitter direct message. They explained that the original Ethereum NFT gets burned — made inaccessible and effectively destroyed — and a new token is created on Bitcoin that represents and is linked to it.

This is similar to projects that have burned real-life objects, including expensive artworks, and “turned” them into NFTs. There is still debate over the connection between the two.

Bitcoin Miladys said a target location is written in the transaction when the NFT is burned. Plus, in the newly created Bitcoin NFT, a signature links back to the original painting. This creates a link between the original NFT and the new version, one which is arguably stronger than when a physical object is destroyed.

Since the Bitcoin NFT now links back to the Ethereum NFT, you can do a lot more stuff with your NFT like dynamic metadata or just rich metadata overall that was not possible on Bitcoin before,” said Bitcoin Miladys. 

This is the idea that the increased amount of metadata contained within the original Ethereum NFT would still be relevant to the Bitcoin NFT — and expand its effective metadata.

Bitcoin Miladys considered how a permissionless two-way bridge would work, one that would allow such NFTs to return to Ethereum. They said this would require the NFTs to be placed in escrow, and then it would be released once the blockchain detects the transfer back. 

But they asked how you would deliver them back to the right address, considering that the NFT could have been bought on Bitcoin, meaning it shouldn’t go back to the person who originally transferred it over.

In the meantime, it’s now up to NFT owners to choose whether they want to burn their thousand-dollar NFT in the hope that it’ll retain its value on another chain.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Blockchain data platform Nansen has cut 30% of its employees amid what CEO Alex Svanevik called a “brutal” year for crypto markets.

“This has been a tough day for us at Nansen,” he wrote Tuesday on Twitter, stating that the company had scaled too quickly and spread into areas that were not part of the its core strategy. “Our cost base is too high relative to where the company is today.”

Svanevik said the company still had several years of runway.

“I’m endlessly grateful to the incredible people we are parting ways with,” he wrote.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Titled “Maschine,” the generative art collection was created by Dutch artist Harm van den Dorpel and draws inspiration from automotive concepts.

The U.S. government is pushing to have an independent inquiry into the crypto exchange despite concerns over cost

Layer 1 blockchain Canto has experienced a 35% slump in total value locked (TVL) over the past month as liquidity continues to dry up across the decentralized finance (DeFi) sector.

Tether announced this month to invest a part of its net realized profits in BTC purchases and infrastructure.

Crypto analytics firm Chainalysis acquired Transpose, a blockchain data and infrastructure company, for an undisclosed sum.

Transpose provides access to real-time blockchain data, including swaps on decentralized exchanges and NFT sales, using APIs. It supports seven blockchain networks, including Ethereum as well as newer Layer 2 networks like Scroll and Arbitrum.

The New York-based company claims to work with crypto firms like blockchain infrastructure provider Chainstack. Its team comprises individuals who have previously worked at companies like Morgan Stanley, Tesla and Jump Crypto.

Chainalysis said that Transpose will help it meet the demand for companies that want to build complicated data systems that lean on fast and dependable APIs for current and historical blockchain data.

Chainalysis is known for blockchain analysis tools used by crypto exchanges looking to stay compliant and regulators trying to keep an eye on the crypto industry.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.